April 30th, 2013
05:14 PM GMT
(CNN) — OurCrowd is an Israeli company trying to change the way start-ups are funded.
The company is structured as a hybrid venture capital and crowd-funding platform, allowing investors from around the world to invest directly in Israeli start-ups.
This model gives investors the structure and professionalism of a venture capital deal, chief executive Jon Medved tells CNN, but couples it with the speed and choice of angel investing. It’s essentially acting as a web-based match making service for start-ups and investors.
Medved explained to CNN that OurCrowd's first task is to seek out promising early stage Israeli companies. It then places them on the platform for it's members to look at and choose from. Investors on the platform can then invest via OurCrowd-managed partnerships. In order to invest, members must be accredited and be prepared to invest a minimum of $10,000 per deal.
Medved, backed by a team of deal makers, is trying to capitalize on what he calls the “Series A funding crunch.” He’s referring to the second round of investment, following seed funding, when businesses may need an extra boost to succeed.
“If you’re not going to get to Series A, you're not going to get to promised land,” Medved told CNN.
So far, OurCrowd has funded 17 companies, injecting $500,000 on average. It has raised more than $10 million in funding.
Click the links below to hear what Medved looks for in a start-up.
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