Although much of Jewish National Fund-USA’s current efforts have been devoted to meeting the most pressing needs of Israel during the war, JNF-USA continues to support efforts to boost Israel’s economy.
Imagine a mouth-watering chocolate hazelnut spread with 70-80% less sugar than the well-known brand on the market. This is one of the products from O’Taste, a new brand that is part of Omega Galil, an innovative start-up food tech company in the Galilee that is continuing operations during the war. The O’Taste technology enables the sweet taste of products to be enhanced, while significantly reducing the amount of sugar used. This patented technology can also enhance the salty flavor of products, while using much less sodium. O’Taste is one of the many businesses that has benefitted from Jewish National Fund-USA’s Israel Impact Investment Committee, which has provided both funds and strategic advice to this early-stage enterprise.Although much of JNF-USA’s current efforts have been devoted to meeting the most pressing needs of Israel during the war, JNF-USA continues to support efforts to boost Israel’s economy. To that end, the mission of JNF-USA’s Israel Impact Investment Committee is to follow JNF-USA’s mission of growing the North and South, Israel’s periphery, by investing in early-stage concepts and companies that will bring jobs and growth opportunities to communities in these regions. The committee operates as a “co-investor,” with the lead investor generally coming from Israel so that there are always local “feet on the street.” It’s important to understand that funds invested in these early-stage Israeli companies do not compete with money needed for other JNF-USA initiatives. Between 2020-2022, the Jewish National Fund-USA Board of Directors allocated $5 million of Unrestricted Funds maintained as part of the portfolio of invested funds of the Jewish National Fund-USA for investment in early-stage concepts and companies located primarily in the North and South of Israel.
Small start-ups hoping to receive investment from JNF-USA first send their “pitch” to the committee highlighting what they do, what’s novel about their company, what are the marketing opportunities and what are the funds they are trying to raise. About 50% of these submissions get to the next level which is a live presentation to the committee where they present their business plan and committee members respond with questions. The committee subsequently votes whether to invest in the company, often requesting that they rethink their plans and return with a revised proposal. About 25-30% of the companies who present are subsequently approved for investment, receiving between $50,000-$200,000. Says Alan Wolk, Vice President, JNF-USA National Board and Chair Israel Impact Investment Committee, “Both our financial investment and strategic business advice offers these companies a significant benefit as several on our committee have years of start-up experience. Plus an investment by JNF-USA is a confidence builder and an endorsement that these companies can then share with potential local investors. During these tumultuous times where the North and South of Israel have been the hardest hit, many private investors have put investment in Israel on hold. Our committee’s mission (and that of JNF-USA) to grow the North and South is crucial to helping keep the start-up ecosystem alive in the periphery.”
Although development of the O’Taste technology has continued despite the ongoing turmoil in Israel, things are very different since October 7. This is a company in which more than two-thirds of the employees are women, including the co-founder, the COO and the head of R&D. Staffers who have had to evacuate and leave everything behind are now working remotely, managing their jobs and their lives in unfamiliar surroundings. Other female employees who can still work onsite are running the manufacturing facility while simultaneously functioning as the sole caretakers of their families, as their husbands have been called up to serve.
Another start-up company based in Israel in which JNF-USA’s Israel Impact Investment committee has invested is the cybersecurity firm Suridata. The company monitors, analyzes and exposes the root causes of online security threats, so they can be removed. Suridata is aligned with JNF-USA’s mission (and the Israel Impact Investment Committee) with plans to establish cybersecurity centers and R&D centers in the north of Israel. “Through JNF’s financial backing and strategic guidance, we have been able to expand our operations, enhance our technological capabilities, and reach new markets,” says Lee Kappon, CEO and co-founder of Suridata and one of two women serving in a key leadership role in the company. Kappon, a former IDF officer, is on Forbes’ 30 under 30 list. According to Kappon, “The ongoing conflict has primarily affected our business operations from a workforce perspective, as some of our team members were called for duty.” She stressed, however, that “JNF-USA has been supportive in navigating these challenges throughout these turbulent circumstances.”
The North and the South of Israel have been hardest hit by the current crisis. You can support JNF-USA’s mission of growing the North and South by giving to Jewish National Fund-USA’s Israel Resilience Fund. Your dollars will be strategically allocated to the initiatives in the North and the South where they are needed the most right now. JNF-USA has built relationships with the Israeli government and local authorities and understands both the immediate and long-term needs of Israel.
Written by Betsy R. Rosenthal, former L.A. Chai Society co-chair, Sapphire Society member, mother of Alexander Muss alumnus
Written by Roni Wolk, Chair of Women for Israel Newsletter, member National Women for Israel Executive Board, Chair LOTEM