RGE launches venture fund to invest in media-tech startups
The Israeli media giant behind Sport 5 and the Children's Channel is setting up a fund to back AI-driven content and monetization innovations.
The media company RGE, controlled by the Recanati family, is entering the venture capital sector. Calcalist has learned that the company, which operates the Sport 5 and Children's Channel networks, is establishing a corporate fund to invest in startups within the content and media industries. While the fund's size has not been disclosed, it is expected to invest in three to five startups per year, with each investment amounting to hundreds of thousands of dollars.
To establish the fund, RGE has recruited Tal Gilor, who previously served as a partner at the Labs/02 venture capital fund, specializing in pre-Seed-stage companies, and as the Israel investment manager for the Motorola Solutions investment fund. He will lead the fund alongside RGE's media solutions division manager, Dror Kraus.
RGE, managed by Yaron Segev, is one of Israel's dominant media players, thanks to its sports broadcasting franchises, which air on the Sport 5 channels it owns. In addition, the company operates the Children's Channel and the Logi Channel and serves as the franchisee for the Knesset Channel. It also owns the sports news website Shvoong and the children's streaming service Biggie. In June 2023, RGE entered the multi-channel television market through FreeTV, a service it operates in partnership with Keshet.
The company is controlled by the Recanati family, which acquired the holdings of its former partner Len Blavatnik in 2020. Blavatnik, who originally purchased 50% of the company in 2008 through Access, sold his stake to the Recanati family for tens of millions of shekels. As part of the FreeTV initiative, approximately a quarter of RGE's shares were sold to Keshet. The company's chairman is Shai Recanati, son of Oudi Recanati, the controlling shareholder.
RGE’s new venture capital fund, RGE Ventures, has been positioned as a strategic investment vehicle for identifying and supporting startups "that aspire to revolutionize the way media is created, distributed, and monetized." The fund will focus on investments in artificial intelligence for media, new content monetization models, advanced infrastructure, and monitoring tools.
Startups receiving investment from the fund will also gain access to a support program offering professional, legal, and financial guidance. This program will help entrepreneurs forge industry connections and secure additional investors for later funding rounds. Additionally, RGE will provide invested startups with the opportunity to test and develop their products using its infrastructure.
Gilor, who will lead the fund, stated: "Our goal is to empower Israeli media-tech entrepreneurs by providing them with the resources and strategic backing they need to thrive. We are not just investors—we are partners in shaping the future of the media industry." His co-leader, Dror Kraus, added: "The way viewers engage with content is evolving rapidly, creating new opportunities. RGE Ventures will enable startups developing advanced technologies to collaborate closely with RGE, opening doors to innovation in content creation and monetization."
