Ofir-SouthUp Ventures Launches $30 Million Fund to Boost Western Negev Tech Investments

Ofir-SouthUp Ventures, a new investment fund named after Ofir Livshtein, the late head of Sha'ar HaNegev Regional Council, is set to begin its initial investments in technology companies operating in or relocating to the Western Negev. The fund aims to raise between $20 million and $30 million from a mix of investors including kibbutzim Kfar Azza, Yakum, and Maagan Michael, entrepreneurs Dov Moran, Shlomo Kramer, Yehudit (Dita) and Yehuda Bronicki, the Zim investment fund, Jewish Community Foundation San Diego, and other private investors from Israel and abroad. The fund is led by Dr. Ami Applebaum and Itai Horstok, with a founding team that includes Shahar Blekin, Gil Schwartzman, Rafi Nevo, attorney Yair Estlein, and Dr. Yarit Weinberg.

The fund honors Ofir Livshtein, who was killed on October 7 during an attack that severely impacted the Kfar Azza kibbutz, which has since joined the fund's vision and initiative. Ofir-SouthUp Ventures is the investment arm of the SouthUp incubator, operating in Sha'ar HaNegev since 2017, which has supported over 70 startups, many of which continue to employ hundreds in high-tech jobs in the Western Negev.

Before closing its first funding round, the fund already invested in ZutaCore, a company based in the Sapir Industrial Zone in Sha'ar HaNegev that employs over 140 people. ZutaCore develops advanced cooling solutions for AI chips used in data centers and recently completed a $100 million Series C funding round led by Mitsubishi Electric, Carrier, and Samsung.

Dr. Ami Applebaum, chairman of the fund and former head of the Israel Innovation Authority, emphasized the fund's mission to fulfill Livshtein's wish to drive economic and social progress in the region by creating high-productivity jobs. Applebaum noted that while many investors doubt the business potential in the Negev, the fund sees significant commercial opportunity and aims to establish the Western Negev as a major innovation hub, counterbalancing the concentration of high-tech investments in central Israel.

Alongside the fund's growth, the SouthUp incubator continues to expand, currently hosting 27 startups, surpassing its pre-October 7 numbers. Additionally, the OfirTech Park is under development in Sha'ar HaNegev Regional Council, spanning approximately 3,000 square meters and expected to open in the first quarter of 2027, providing a base for dozens of startups.