The Startup incubator that will turn the Israeli NEGEV region into a technology and innovation hub
A specialized start-up incubator in the Negev region reinforcing Israel’s southern periphery by supporting technological initiatives with regional affinity from their early stages
The effect of geographical diversity on new initiatives, alongside a systematic trend of advancing northern and southern Israel, have brought about the founding of new technological incubators in these regions, many of which are supported by the Innovativeness Authority.
One of the leading incubators that won the innovativeness authority’s contract for establishing an innovativeness hub in the periphery was the InNegev incubator, which is active since early 2020, supporting and guiding start up companies from the fields of agritech, foodtech, cleantech and industry 4.0, all from southern Israel.
The InNegev incubator involves some of the leading academic, industrial and financial powers in Israel, which function as financial and industrial partners: The Bnei Shimon regional council, SodaStream, Netafim, Dolav and Kibbutz Hatzerim, The Sami Shamoon College of Engineering, and the Alpha Capital Investment Fund. It is run by a talented and professional team from the fields of technology and entrepreneurship: Eli Ben Simon – incubator chairman, Kobi Liberman – managing director, Dror Green – incubator CEO, Amir Tzach – VP business development, and Noa Isralowitz – project manager.
The incubator is located at the Idan Hanegev industrial park, close to the Cross Israel Highway and the Lehavim-Rahat train station – a location offering developers the needed proximity to relevant hubs and locations.
“The incubator’s partner companies and professional team make available all means within their reach to the developers – labs, production lines, international connections, and experienced engineers and managers - as they assist the developers in all stages of product development – from the initial concept and up to market launch, while the incubator’s essence is being an innovativeness hub in the Negev, supporting initiatives with local affinity”, so says Amir Tzach, VP of business development.
“InNegev, as part of the contract it fulfills, is here to significantly advance innovativeness and entrepreneurship in Southern Israel”, so says Dror Green, the incubator CEO, and a resident of the Negev region.
Dror Green, the incubator CEO, and a resident of the Negev region What are the requirements for being part of the incubator?
In order to be accepted to InNegev, an initiative must pass the investment committee and an innovativeness Authority committee. The investment committee is made of the incubator’s partners and other professionals who examine the initiative’s compliance with certain essential criteria: the developers and their team project, level of innovativeness and technological profoundness, business potential, affinity to the Negev region and market potential, as well as an initial feasibility test. Since we began operating last year, we’ve examined more than 250 applications, and today we have 3 portfolio companies and 2 more are on their way,” according to Amir Tzach.
“We also consider start-ups that are in very early stages, and those accepted go through a mentoring program, and learn about the essence of being a start up company in general, and an InNegev start-up in particular.”
What do the developers get upon their acceptance?
“The developers receive an initial investment of up to 2 million dollars from our business partners, as well as commercial and technological advice, connections to strategic partners, and to other hubs located in proximity to the incubator’s location in the Negev, so that they can further develop into strong independent companies.
Amir Tzach, VP of business development the Start InNegev pre-incubation competitive program
One of the original InNegev programs was the pre-incubation program: Start InNegev. This is a short, concentrated program, assisting early-stage start-ups that share InNegev’s fields of interest: agritech, foodtech, cleantech and industry 4.0. The program lasted two months, during which the developers received preparation and basic tools for founding a start up company, and presenting it to investors – thus improving their chances of getting into InNegev.
“We recruited a professional, talented program manager – Tal Catran, and created a mentoring program for all relevant aspects of a growing start up, including devising a business plan, technological depth, mapping the existing opportunities in the Negev, establishing connections with the incubator partners, getting to know the ecosystem around the incubator, and preparing for meeting potential investors. The developers received constant guidance from the incubator team – Noa, Dror and me, as well as from partners of our program: Bank Hapoalim, BDO, and the Lutzzato Group - who also give consultation, lectures, and aid with patent registration. The 17 companies that were accepted to the program received close accompaniment in the form of 8 lectures, preparing them for the consolidation of a business plan and presentation of their project to potential investors.”
What is the Demo Day competition that took place at the end of the pre-program?
It was an award-winning project that we initiated for the 17 start ups that took part in the Start InNegev program, in which there were three winners. It took place online on April 7th, with attendance of the InNegev team, judges from the incubator partners, representatives from the Innovativeness Authority, the program partners and external investors, and it was open for the wider public. During the contest, each developer presented their project, its affinity to the Negev, the challenge that the initiative aims to overcome, the solution, and the business model. The three first places received 15,000, 10,000 and 5,000 Dollar prizes, and quick admission to a feasibility test for entering the incubator (with the prospect for an investment of up to 2 million dollars). Eventually, due to the close competition between many excellent projects, the third place was shared by two start-ups.”
Who were the winning companies?
“The company that won first place was Fungit Biosolutions which develops a biological solution capable to prevent and eliminate pathogenic fungi for agriculture, that can be embedded in watering systems and prevents destruction of half the produce. The second place was won by the Follo company, which develops a computerized task management system for organizations, using movement sensors that monitor each task until its completion. The third place went to efCut, which developed a smart sheering machine for the production of costume-made products, and Optify, which develops sensor systems and software for continuous monitoring of potential faults and their prevention. These companies won prizes, got exposed to potential investors, and improved their chances of acceptance to the incubator.
“The program and competition were excellent and received many commendations, so that we will surely consider having them every year.”
What did you learn from the pre-incubation program, in terms of the innovation potential of the Negev?
“We’ve learned plenty, both about the willingness of companies from all over Israel to take part in the program, and also about the feasibility of our vision for promoting innovativeness in the Negev area, connecting companies from the Negev and elsewhere and helping them grow. Our ultimate goal is turning InNegev into the Negev’s innovation and development hub, and the program is just one of many ways we are taking on our way there.”
Dror Green, CEO of the InNegev incubator: “We congratulate the winners and are happy to give an opportunity to developers who want to work in the Negev with the help of InNegev, and within our and our partners’ fields of interest. The InNegev incubator, promotes its initiatives in order to gather them under the incubator’s umbrella, and give them all the possible support in order to turn them into successful start-ups based in the Negev.”
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