A new project seeking to secure stock donations from 100 Israeli tech companies by the end of the year for the long-term support of Israeli children affected by the October 7 terror attacks has already raised about $20 million in stock donations from shareholders.
The equity fund was launched on May 15 by secondary market technology platform Valoo, based in Ra’anana.
“After October 7, we looked for a way to help and realized we could contribute Valoo’s technology to create a new channel for donations where the entire Israeli tech sector can contribute, leveraging the unique value it generates,” said Valoo cofounder Adi Weitzhandler.
“Valoo for the Kids is a nonprofit initiative in partnership with Israeli public service venture fund Tmura, dedicated to ensuring financial stability for children and their families affected by the October 7 massacre,” she explained.
“This is a zero cash donation. Founders, angel investors and employees donate shares in tech companies. As the company’s value grows, so does the value of their donation. ​Valoo turns these shares into cash through secondary sales and by participating in IPOs and exit events.”
Valoo for the Kids plans to distribute cash continuously over the next decade to organizations supporting thousands of affected children with educational, economic, medical and other needs due to the attacks and the ensuing war. According to a government study, some 643 children have lost one or both parents in the terror attacks and the subsequent fighting, and this does not include many additional children directly impacted in other ways.
The fund will use Valoo’s data model to maximize the value of the donations. Helping shareholders in private companies benefit from asset liquidation following initial or secondary offerings, this model consolidates and analyzes information from several sources and cross-references it with company publications and information from sellers to help shareholders get an accurate overview of the status of their shares and holdings.
The shares contributed to Valoo for The Kids are coming from companies at various stages, from those approaching IPOs to rapidly growing tech companies, to early-stage startups with long-term growth potential.
Among the companies whose shares have already been donated are eToro, Via, Zesty, Reflectiz and Neuroblade. Additionally, the initiative receives support from LeumiTech, the law firm Meitar, and PwC.
Elad Sity and Eliad Hillel, founders of the Data Processing Chip company Neuroblade, which has raised $110 million so far said, “We are proud to participate in such an initiative, which combines the desire to help children affected by the horrific massacre and war with the ecosystem of the Israeli tech industry and the aspiration to see it thrive and succeed, knowing that the children will also benefit from this success.”
Sity said Valoo for The Kids is “a golden opportunity to blend incredible creativity and technological innovation for a higher purpose. This is a true win-win situation for all parties, and I believe that the smart accessibility to donations through shares is an excellent way to generate a donation flow with significant growth potential over the years.”
The managing committee of the initiative includes serial entrepreneur and venture capitalist Eyal Gura, who conceived of the idea; as well as social entrepreneur Adi Altshuler; Avner Stepak, owner of Meitav investment house; and managing partners of Israeli venture capital funds.
Valoo is a team of entrepreneurs and professionals whose expertise is the venture capital market and the alternative investment market since 2010.
The team has extensive experience in managing funds and investment partnerships, in locating and forming transactions in private companies and representing high-tech companies in complex and finance transactions.
Produced in association with ISRAEL21c
