|M.Sc Student||Avi Kaufman|
|Subject||Venture Capital Funds and Technological Incubators -|
Comparative Test by Institutionalization Model
|Department||Department of Industrial Engineering and Management||Supervisor||Professor Goldberg Albert|
The sudden prosperity of the Venture Capital Fund in Israel is a direct result of governmental intervention in the 1990’s in two main spheres of influence:
1. The establishment of the technological incubators program.
2. The establishment of the governmental Venture Capital Fund “Yozma” which initiated fund investments in Israel.
Financial indicators show that the national financial and economic future is presently largely dependent on the success of the technological sector.
The “high-tech” sector, defined as the “engine” of the economic activity, has become, and will inevitably remain the wheels that drive the economy (Carmon, 2000).
The 1990’s witnessed the beginning of a national boom in the advanced technologies (high-tech). This national high-tech revolution resulted in the establishment of numerous young Start - Up companies.
The unique Israeli technological knowledge base (largely based on knowledge and experience of the defense industries) constitutes a relative and dominant advantage for the Israeli market.
During the last decade, many technologically based entrepreneurs or promoters came into being. The majority based on original technological developments. These entrepreneurs were led in turn by a single or a number of single promoters who developed unique technological applications that had a wide financial potential.
To facilitate the realization of these concepts they established a team or Start-Up company.