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Israeli Fund for Automotive Technology Raises $40 Million

A new venture capital fund focused on Israel’s automotive technology sector said on Wednesday that it raised over $40 million, twice its target.

Maniv Mobile LP said it will help investors partner with emerging leaders in transportation technology, The Times of Israel reported. It currently has 15 companies—mostly Israeli startups—in its portfolio.

The fund benefited from the increased focus on Israeli automotive technology startups, especially in the wake of the March purchase of Mobileye by chip-making giant Intel.

Among the limited partners in the new fund are the equity crowdfunding VC OurCrowd; InMotion Ventures, a subsidiary of Jaguar Land Rover; and the $14 billion French multinational automotive supplier, Valeo.

“Automated vehicles will be electric, breaking oil’s stranglehold and giving us cleaner air,” Maniv’s founder Michael Granoff said in a statement. “But these vehicles will do so much more: save lives and time through accident avoidance, expand mobility to the young, the old, the infirm, allow us to reclaim precious real estate from idle vehicles and more.”

“Now that Israel is recognized as a world leader in this sector, there will be increased global attention to Maniv’s portfolio companies, many of whom are already pioneers in emerging new technologies,” added Jon Medved, CEO of OurCrowd.

Prior to the Mobileye deal in March, Avi Jorisch described Israel’s burgeoning automotive technology sector and why it appears so promising.

Israel has more than 5,000 startups and 750 venture-capital-backed companies, and the country attracts more venture money than any other country in the world relative to the size of its economy. In addition, Israel’s so-called Silicon Wadi, or valley, has the second largest number of technology startups per capita, right behind California. Even though Israel lacks a native automobile production industry, companies focusing on this global sector comprise about 15 percent of Israel’s industry sector businesses, and their numbers are growing steadily. In the last two years, Israeli automotive startups have raised $820 million, according to Yoram Oron, founder of Vertex Ventures and a member of the Singaporean sovereign wealth fund Temasek Holdings. In addition, over 500 Israeli companies are currently focused on creating the infrastructure for driverless vehicles.

Some of the world’s top car makers have set up research and development centers in Israel, including General MotorsHondaVolvo, and Daimler, which owns Mercedes-Benz. Last year, Ford bought an Israeli startup that specializes in machine learning. Globes also reported earlier this year that BMW (which was already working on driverless cars with Intel and Mobileye) is considering opening a “smart car” development center in Israel.

[Photo: Israel21c ]