The Nazareth-based NGT HealthCare II Impact Fund, which focuses on health technologies, has announced a new fund with commitments of approximately $92 million for investments in its portfolio companies. The funds are intended for investments in breakthrough academic and medical commercialization technologies, and special attention will be given to promoting entrepreneurship from the Arab sector.
“We will continue to build innovative life science companies, commercialize technologies from universities and hospitals, and encourage entrepreneurs from the Arab society,” said Zohar Gendler, managing partner and CEO at NGT HealthCare II.
As a result of NGT HealthCare II winning the Israel Innovation Authority’s incubation tender, the fund intends to leverage grants of approximately $30m., up to NIS 6.5m. per portfolio company.
These funds will allow NGT HealthCare II to invest in about 25 early-stage start-up companies, and in 16 “year zero” projects (pre-incubator, academic projects) in the fields of biotechnology, bio-convergence and medical devices. Companies that will join the fund’s portfolio and receive funding will also be granted access to the fund’s Nazareth offices and laboratories, as well as professional support from fund partners, in-depth market analysis, support in pre-clinical and clinical trials, and support in capital raising and agreements with strategic players.
“The Innovation Authority’s new program, which enables investment in ‘year zero companies’ provides for the first time, the possibility of young projects with groundbreaking technology, to carry out preliminary proof of concept,” noted Gendler.
She added, “Our exceptional partners, and the extensive collaborations we have built with academic and health institutes in Israel and abroad provide us with high accessibility to new projects that are now gaining high leverage from the Innovation Authority together with the fund’s funds. NGT HealthCare II and its partners will also support these companies later, after the initial investment period.”
In light of the new fund’s establishment, NGT has taken on two new strategic partners: T3, the commercialization arm of the Technion; and Hadasit, the technology transfer company of Hadassah Jerusalem. They join established partners such as Arkin Holdings and Jacobs Investment Company LLC.
“The Technion [Israel Institute of Technology] is a world leader in innovation and entrepreneurship, and the partnership with NGT HealthCare II serves as a natural platform for an applied realization of the Technion scientific excellence,” said Rona Samler, general manager at T3. “Our collaboration will enable the advancement of groundbreaking solutions, the creation of economic value and social impact.”
Hadassit CEO Dr. Tamar Raz added, “We joined NGT HealthCare II out of a deep and long familiarity with the leading team that brings with it a high commitment to developing and commercializing innovative technologies. The NGT HealthCare II team understands our biggest challenge in developing early-stage technologies into companies, bridging the gap from academia to the industry. The NGT team closely accompanies the companies throughout the development, regulatory and clinical stages, raising capital and connecting to strategic partners.”