Formula Ventures was founded as the successor fund for Argotec, a Formula
Group company. Formula Ventures manages two venture funds – FV-I established
in late 1998 and FV-II established in early 2001.
The roots of Formula Ventures are in Argotec, the early stage investment arm
of the Formula Group. Argotec was established in 1993, and managed by Shai
Beilis from early 1995 to late 1998, as a wholly owned subsidiary of the
Formula Group, to invest in early stage Israeli Information Technology
companies. Argotec was a holding company with eight portfolio companies in
which it held majority interests. Argotec actively nurtured its portfolio
companies and assisted them in building management teams, forging strategic
relationships and taking them public. Argotec helped build companies such as
Wiztec Solutions and Crystal System Solutions, both of which went public on
NASDAQ in 1996 and 1997 respectively producing extraordinary returns.
During the same period the start-up environment in Israel had undergone
dramatic changes. Aided by an initiative of the Israeli government, a local
venture capital industry emerged. The availability of capital, coinciding
with the explosion of the Internet, swelled the ranks of Israeli
entrepreneurs and grew the number of investment opportunities exponentially.
Recognizing the unique value it could offer to both entrepreneurs and
venture fund investors, the Formula Group decided to spin out a venture
capital group – Formula Ventures. Formula Ventures’ strategy was clear and
straight-forward: provide true added value to early stage technology
companies. To that end Formula Ventures built a professional team with deep
Information Technology operational experience and broad coverage of the
communications, data communications, Internet, enterprise software,
engineering software and semiconductor sectors.
Formula Ventures I was established in late 1998 with Shai Beilis as Managing
Partner. In 1999 FV-I completed its financing, at the time as the largest
first time Israeli fund and the largest early stage - focus Israeli fund.
The portfolio of FV-I grew from six companies in 1998 to twenty in 2000,
divided among communications and data communications infrastructure,
Internet infrastructure and enterprise software.
In early 2001 FV-II was launched as a successor fund and third investment
vehicle managed by the Formula Ventures team. FV-II practices a strategy of
local source – global nurture, selecting the best of Israeli technology
companies and nurturing their development in their target markets. Formula
Ventures is aided in this strategy by its strategic partners – Formula Group
in Israel, VantagePoint Venture Partners in the U.S. and UBS Capital in