Firstime unveils project financing for startups, closing first $60M deal
Non-dilutive credit solution targets deep-tech and sustainability companies.
Venture capital fund Firstime, headed by Jonathan Ben-Artzi and Nir Tarlovsky, is launching a new non-bank credit operation for high-tech companies, Calcalist has learned. The initiative, called Firstime Credit, is being established in partnership with Yoni Ophir, former EVP and Head of Credit at Altshuler Shaham Investment House, who will serve as CEO.
Unlike traditional venture lending, which provides short-term financing tied to equity rounds, Firstime Credit will operate under a project financing model more commonly used in large infrastructure projects such as solar installations or power plants. The financing will be structured based on a company’s projected revenue streams rather than loan refinancing, offering a new funding alternative for startups.
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Firstime Credit team Yoni Ophir (center), Galit Tshuva (right) and Sharon Adiv.
(Photo: Firstime)
Firstime Credit will primarily target high-tech companies in the energy, environment, and sustainability sectors, both in Israel and abroad. The ideal candidates will be startups that have completed a Series B round, demonstrating technological maturity, an existing product, and contracts with significant revenue potential requiring substantial investment to scale.
Unlike a typical credit fund, Firstime Credit will not raise capital upfront. Instead, it will lead financing transactions alongside banks, institutional investors, and private backers, acting as the technology and credit evaluator. Individual deals are expected to range between $10 million and $100 million, with loan terms spanning two to six years. The financing will carry a double-digit interest rate and include equity participation and a share of the borrowing company’s revenue.
This is senior debt, secured not only by the specific project but by all of the startup’s assets. The funding will be provided as a credit facility, allowing startups to draw funds as needed without paying interest on the entire sum upfront.
Filling a Gap in High-Tech Funding
Firstime Credit aims to bridge a critical funding gap for startups that require substantial infrastructure investment to commercialize their innovations. Traditional banks and institutional investors are often reluctant to fund projects with technological and operational risk, forcing startups to either raise capital—leading to shareholder dilution—or struggle to secure alternative financing.
While global investment giants like Blackstone and BlackRock offer similar project-based financing, their focus is on mature companies with established revenues, leaving startups largely underserved.
The high-tech debt market has been booming, with startups increasingly seeking loans to avoid raising capital at low valuations. According to PitchBook, the total volume of loans to high-tech companies doubled in 2024 to $53 billion, though most were structured as venture lending, rather than the project financing model Firstime Credit is introducing.
Venture lending, traditionally led by Silicon Valley Bank (SVB) before its collapse, serves as bridging finance tied to equity rounds, while Firstime Credit’s model is focused on long-term revenue-backed financing.
To navigate this transition, Firstime has recruited Galit Tshuva, former Head of Credit Department at Citi Bank Israel, Sharon Adiv, former Head of Credit at Altshuler Shaham and CFO Vered Kirshbloom. Ophir himself brings experience from the Manof Origo Fund, which was created following the 2008 financial crisis to assist struggling businesses.
First Deal: $60 Million for STAX, Backed by Edward Norton
Firstime Credit has already closed its first financing deal, providing $60 million to the California-based company STAX, co-founded by actor Edward Norton.
STAX is developing emission capture technology for the global shipping industry, helping major companies such as Toyota, Hyundai, Shell, and Zim meet environmental regulations. The company’s floating platform technology captures up to 99% of polluting particles and 95% of nitrogen oxides, converting them into a purified, harmless gas.
To date, STAX has processed emissions from 142 vessels, operating for 6,800 hours and preventing the release of approximately 52 tons of pollutants into the atmosphere. The company’s technology is approved by the California Air Resources Board (CARB) and is already in use at multiple U.S. ports.
Firstime Ventures’ Broader Strategy
Firstime Venture Capital, which manages approximately NIS 1 billion across three funds, has been active in Israel for over a decade. Its 30-strong portfolio includes Talkspace, which went public on Wall Street, as well as deep-tech companies such as BeeHero (smart hives), Redis (a unicorn in cloud infrastructure), and Pixellot (sports broadcasting technology).
With the launch of Firstime Credit, the firm is expanding its impact by offering non-dilutive financing to startups with long commercialization timelines, particularly in hardware and sustainability-focused sectors.
