Israel Aerospace Industries (IAI) plans to set up a venture capital fund of up to $1.5 million investment in five startups annually.
IAI will begin proceedings in the coming days to obtain a permit from the Government Companies Authority to establish a venture capital fund for investing in startups, Globes reported last week quoting unnamed sources as saying.
According to the plan being formed at IAI, the fund will operate for a decade and invest in five startups annually that are developing new technologies involving IAI's core activity, such as space, navigation of drones, robotics, autonomous vehicles, electrical propulsion, micro and nano-satellites, sensors, etc.
The company intends to invest $500,000 to $1.5 million in each startup through the fund. Most of the money for the fund will come from IAI's research and development budget.
Since IAI is a government company, carrying out the plan requires approval from the Government Companies Authority. A meeting is scheduled for next week between IAI executives and heads of the Government Companies Authority, at which the matter will be discussed.