Israel's Economy
Yozma and Venture Capital
How the government's Yozma programme in 1993 kick-started Israel's venture capital industry by matching private investors, a model studied by other countries.
Israel’s government kick-started venture capital.
Yozma
Launched in 1993, Yozma invested about $100 million alongside private investors.
Design
- Government matched private funds.
- Investors could buy out the government’s stake cheaply if successful.
- Foreign VC partners brought expertise.
Results
Israel’s VC industry grew rapidly, and funds were privatised by 1998.
Chief Scientist
The Office of the Chief Scientist (now the Israel Innovation Authority) funds R&D.
Lesson
Smart public support can catalyse private investment.
India
India’s Fund of Funds for Startups (2016) follows a similar idea.
A US VC firm sets up an Israeli fund with Yozma matching its money, later buying out the government.
Yozma kick-started Israel's industry.
- Yozma launched in 1993.
- It matched private investors.
- It was privatised by 1998.
- India's Fund of Funds follows a similar idea.
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