New project aims to secure equity donations from 100 Israeli tech companies by the end of the year
The fund, which aims to provide long-term support to Israeli children affected by the Oct. 7 terror attacks, has already raised about $20 million in equity donations from shareholders.
The equity fund was launched on May 15 by Ra'anana-based secondary market technology platform Valoo.
“After October 7, we looked for ways to help and realized that by offering Valoo's technology, we could create a new donation channel through which the entire Israeli tech industry could contribute, leveraging the unique value it creates,” said Adi Weitzhandler, co-founder of Valoo.
“Varu for the Kids is a non-profit initiative in partnership with Tumra, an Israeli public service venture fund, dedicated to ensuring financial stability for children and their families affected by the October 7th massacre,” she explained.
“It's a zero-cash donation. Founders, angel investors and employees donate equity in technology companies. As the value of the companies increases, so does the value of the donation. Valoo turns these shares into cash through secondary sales and participation in IPOs and exit events.”
Valoo for the Kids plans to continue distributing cash donations over the next 10 years to organizations that will help thousands of children affected by the attacks and the war that followed, including with educational, financial and medical needs. According to a government study, some 643 children lost one or both parents in the terrorist attacks and subsequent fighting, not including the many children who were directly affected in other ways.
To maximize the value of their endowments, the foundation will use Valoo's data model, which helps private company shareholders benefit from asset liquidation following an initial public offering or secondary public offering. The model consolidates and analyzes information from multiple sources, cross-referencing it with company publications and information from sellers to help shareholders understand exactly what's happening with their shares and holdings.
Equity donations to Valoo for The Kids come from companies at all stages of life, from pre-IPO companies to fast-growing tech companies to early-stage startups with long-term growth potential.
Companies that have already donated shares include eToro, Via, Zesty, Reflectiz and Neuroblade, and the initiative has also received support from LeumiTech, law firm Meitar and PwC.
“We are proud to be part of an effort like this that combines our desire to help children affected by horrific genocide and war with the Israeli tech ecosystem and our desire to see it thrive and succeed, knowing that children will benefit from this success,” said Elad Siti and Eliad Hillel, founders of Neuroblade, a data processing chip company that has raised $110 million to date.
Siti said Valoo for The Kids is “a fantastic opportunity to blend incredible creativity and innovation to achieve a higher purpose. It's a true win-win situation for all involved, and we believe providing smart access to donations through equity is a great way to generate a donation stream that has the potential for significant growth over the coming years.”
The initiative's management committee includes serial entrepreneur and venture capitalist Eyal Gura, who originated the idea, social entrepreneur Adi Altshuler, Avner Stepak, owner of the Maytav investment firm and managing partner of an Israeli venture capital fund.
Valoo is a team of entrepreneurs and professionals specializing in the venture capital and alternative investment markets since 2010.
The team has extensive experience managing funds and investment partnerships, sourcing and structuring private company transactions, and representing technology companies in complex financial transactions.
