"With Israel’s funding crisis, now is the time to invest in healthtech startups and fund new projects"
"With Israel’s funding crisis, now is the time to invest in healthtech startups and fund new projects"
Noam Amir, the CEO of the Israeli Medical Association's ClubD, spoke to CTech about Israel’s first exclusive medical innovation club for members of the IMA, and why now is an opportunity for investors to access the Israeli healthtech market.
The Israeli market has undoubtedly experienced a cooling in foreign investment that began during the government’s attempted judicial overhaul in 2023, and has continued since October 7th and Israel’s multifront war. However, one group of investors has identified this period as a unique opportunity to access the Israeli tech market: the Israeli Medical Association.
“There’s a huge crisis in Israel and all companies are struggling to raise funds, to raise valuations, so now is the right time to invest. Now, more than ever, there is a need to fund new projects,” says Noam Amir, CEO of ClubD - Israel’s first exclusive medical innovation club, established by the Israeli Medical Association in partnership with eHealth Ventures, a VC fund specializing in healthtech investments. The club, which operates like an angel investor club, provides medical professionals with the tools, resources, and opportunities necessary to drive innovation within the healthcare sector.
“We identified a need to bridge the gap between Israel’s medical professionals and the country’s state-of-the-art healthcare industry,” Amir, who formerly served as VP of Corporate Development and Legal at the Startup Innovation Incubator where she oversaw portfolio companies' legal and business development activities, explains. The model allows medical professionals to invest in exclusive opportunities in healthcare technology, medical devices, and health tech.
ClubD stands apart from traditional investment clubs due to its focus on medical professionals and health tech. "We screen for great opportunities and aim to follow up on investments, lowering the risk for our investors while giving them access to exclusive opportunities," Amir says. With a goal of registering thousands of members, ClubD presents a significant potential for growth in Israel's investment landscape.
The last two years have seen a rise in challenges for Israeli startups, particularly early-stage ones, to raise capital abroad, and for an industry that receives the lion’s share of its investment from foreign capital, this has been of great concern. One of the answers that has been gaining steam is for domestic investors to refocus their investment to the Israeli market, and one way that this is manifesting is through a trend of new angel investor clubs.
Amir sees the growth of investor clubs in the current moment as a pivotal one for the Israeli market, especially in light of global economic challenges. “We believe in our country and its resilience. There’s a unique opportunity right now because valuations are lower, and for those with disposable income, it’s a chance to make smart investments. Clubs have been less common in Israel in the past, but I expect there to be more launched this year; it's an economic growth engine.”
ClubD, according to Amir, is part of a larger vision to shift the Israeli investment culture. “In the U.S., investment is much more ingrained - everyone has a stock portfolio. We’re not there yet in Israel, but it’s starting. There is a growing number of people who want to invest, but for most people investing via VCs is just not feasible. Clubs like this give them access to the market.”
Within the next year, she hopes to have thousands of members registered and the first transactions completed by Q1 2025. The club aims to invest in 5-10 startups per year, with a long-term goal of positioning itself as a trusted name in healthcare innovation. With 30,000 registered members of the Israeli Medical Association, ClubD has “the potential to become the largest investors club in Israel, as well as with the most qualified investors,” Amir says. “This is a unique community - talented, smart, and obviously knowledgeable about the clinical and medical arena. Israel is also a global leader in the healthcare industry.”
In terms of what kind of companies the club will be looking to invest in, Amir says that they’re looking for follow-in investments to reduce risk. “We’re looking for promising teams with unique technology and value, demonstrated market traction, and attractive transaction terms.” She adds that they are open to investing in both early stage and later stage companies if the opportunity is right, in ventures across the healthtech and medical device sectors.
