In a conversation with “Globes”, Harel explained that “the fund will invest in medical devices, digital health, drug development, agatech (agricultural technology) and podtech (innovation in food), and in the past we have focused most of our efforts in the field of life sciences. We believe that in the designated fund, medical equipment and digital health will constitute about half or more of the fund, but This is not yet a final decision. ”
What led to the establishment of a dedicated fund for biomed now?
Harel: “I have been aiming at the other partners in Pitango for several years now, and the unique opportunity is mainly in the digital revolution that is reaching the medical world. Trillion dollars.
“Israel in particular and Pitango in particular have combined knowledge in the fields of digital and life sciences that can be exploited to benefit from this trend.”
Harel notes that: “Although the number of potential buyers in the field of medical devices has declined, but in the digital health field there are many buyers, the classic tech players have entered the field, and the market is becoming global, and today it is possible to buy in Japan, China, Australia, Europe, “B”.
“Until three years ago, Biomed’s exit ceiling was around $ 350 million, maybe one exception – Given Imaging,” says Harel. “Suddenly we see older companies with larger exits (1.6) ($ 1.3 billion), Noroderm ($ 1.1 billion), Waltec (340 + 650 more potential milestones) and companies that raise tens of millions of dollars (such as Novocor, which is already traded at $ 5.2 billion). To the initial stage. ”
From the crisis of 2007-2008 until a few years ago, you were one of the only bodies that invested significant sums in medical equipment in Israel. Did you take advantage of opportunities during this period, when you were almost alone?