Image for post
Image for post

“Satisfaction, came in the chain reaction…I couldn’t get enough, ‘till I had to self-destruct”. The Trammps, Disco Inferno.

Recently, CBInsights published a report detailing 339 startup failure post-mortems. One of their key findings was that 70% of tech startups after raising on average $1.3m failed around 20 months. Turns out the two big killers of startups were “No Market Need”, and “Running out of Cash”.

One founder wrote : “We have run out of time and have not been able to secure funding for the company…I will never be able to forgive myself for not taking action sooner.”

This highlights a remarkably difficult challenge that founders face on a daily…


Image for post
Image for post

“No winter lasts forever, no spring skips its turn.” Hal Borland.

My previous blog “Winter’s Coming…” a month ago discussed some key actions for startups over the next few months and projected how long the pandemic would be with us. In this article, I’d like to share some of the thoughts about the very different world we’ll find as we slowly emerge from COVID19. By no means do these thoughts represent a comprehensive view of everything. Rather they are a small subset of what may be.

The new WFH (work from home) / life balance.

We’re finding that most of us can, in fact, work from home for prolonged periods. Taking a step back from the current lockdown situation, one can see how these impacts may be overcome. …


Image for post
Image for post

We shared this note a few days ago with the founders and CEO’s of Entrée Capital’s portfolio companies.

We are sharing this important information and advice with you. Please take it seriously — we will be in touch over the coming days to discuss specific action plans for your business.

If viewed through the lens of a startup, the Corona Virus (COVID-19) outbreak looks overblown. Chances are you wont get sick, and if you do, chances are good you’ll be fine. Of course you say this because you’re generally under 40 years old.

HOWEVER, unfortunately you don’t live alone and in just your own startup la-la land. If you’re an enterprise software company, you are selling to Fortune 1000 companies that are very much affected by the outbreak and are cutting back non essential spend. If you’re selling to small business, guess what? Over half of small business is started by over 50’s — folks who are most at risk. We can go on…. So, yes, everyone and everything is at risk and will be affected. …


Image for post
Image for post

We are excited to provide the definitive and updated 2020 list of the Automotive Ecosystem in Israel.

The list has a number of categories that include Fleet Management, Parking, Cyber, Connectivity, V2X, Sensors, Over the Air, DashCam, Engine Battery/Energy, Mapping, and more.

A big thank you to Ran Achituv, Managing Partner at Entrée Capital who sponsored ad put the list together and Blue White Robotics, the leading RaaS (Robotics As A Service company), for co-sponsoring and helping out.

You’ll find the full list here : http://bit.ly/automotive_il.


How an insatiable appetite for the future and a lack of a fear of failure is propelling Israeli entrepreneurs to great success, and why we think this will continue.

Image for post
Image for post

Founder Collective recently published an insightful post quantifying the various startup hubs across the globe using exit value as the key metric. David Frankel and Joseph Flaherty contend that “There’s never been a better time to build a company outside the Bay Area.” — As regards Israel, we couldn’t agree more!

Surprisingly (or perhaps not), Israel’s exit values surpassed those of Germany and France combined over the past decade. …


Image for post
Image for post

Every startup at the Seed Stage can learn from the challenges Monday.com experienced a few years ago, when it was struggling to find product market fit and money and time were running out.

Hosted by Lior Krengel and Eran Zinman, ‘Startup for Startup’ is a podcast where monday.com openly shares its knowledge, experience and actionable insights among startups. The podcast was originally recorded in Hebrew in May 2019, and is available here. What follows is the translated and transcribed podcast.

This week we’re going back in time to a period of uncertainty for monday.com — January 2014. We still had not crack the product-market fit and had only a few more months worth of cash left in the bank. …


Image for post
Image for post

Convertible Notes and SAFE’s (“Notes”) are viewed as a simple and fast way to raise capital with few terms and restrictions — Yet, it’s not all a bed of roses.

As an investor, we have utilized Notes many times as a way to guarantee maintaining or increasing our shareholding in a startup ahead of the next financing round. We do this to generally achieve one of the following:

(i) to act quickly ahead of Investors fighting for equity so we retain or increase our shareholding;

(ii) in ‘bridge’ situations where a startup shows promise but does not have the metrics/product fit yet and needs a bit more time to attract the next round Investor. …


Image for post
Image for post
Moran Price, CEO of IRP Systems. Image from the Ma’ariv newspaper in Israel.

The Israeli high-tech company IRP Systems’ decision to adapt the technology it developed of electrical propulsion for the aviation industry to the global car industry, forced it to take a dramatic step — secure the right investors at the right time.

“For me, an investor is never just a financial investor,” explains the CEO Moran Price, rather, a partner in every sense of the word.”

The atmosphere was very exciting at the launch event for the fourth China-Israel Innovation and Investment Summit held a few weeks ago at the Ministry of Foreign Affairs in Jerusalem. Israel’s Prime Minister Benjamin Netanyahu, and the Vice President of China, Wang Qishan, visited five technology and startup booths and were personally impressed by the creativity and daring of the Israeli inventors and developers. …


Image for post
Image for post

Startups raise capital from investors and don’t always understand why/when the investor declines. We articulate the NO Funnel.

We see over 1,000 startups every year. Inevitably, we cannot do every deal and in fact, we probably don’t do 99% of the deals. The downside of this is that it means over 990 startups are not funded by us.

These stats probably apply to most venture capital businesses, so it’s worth explaining to founders that a NO that’s given should be viewed in context. Generally speaking (and specifically so for us), it is not an exercise in arrogance or ill will. Rather, a venture capitalist will say NO based on its own understanding of the startup, its view of the industry/sector/product, or its view on the founders. …


Image for post
Image for post
Israel Fund II Investing Partners: from left, Avi Eyal, Eran Bielski, and Ran Achituv

Raising our second Israeli Seed fund, it being the fourth ‘fund’ since 2009 when we started Entrée Capital, started me thinking about the journey we embarked on almost a decade ago when we started working from a small home office.

The plan had always been to transition from being ‘serial founders’, to becoming ‘serial funders’, thereby leveraging our experience over 20 years and, hopefully, replicating our success on a larger scale. The idea was to back founders in the same way that we would have wanted investors to back us. And so our motto became at the outset “For Founders. …

About

Avi Eyal

Investor. Serial Entrepreneur. @aeyal1 @entreecap #proudinvestor: @cazoouk @pillpack @seatgeek @mondaydotcom @fundbox @stash @gustohq @howtoprospa @riskified

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store