Australian Investors Target Israeli Agtech and Climate Tech

Australian venture capital firms, including Bandera Capital and Foxglove Capital, are increasingly focusing on Israel not just for its cybersecurity and defense startups, but also for emerging opportunities in climate, energy, and agrotechnologies. Bandera Capital, through its joint venture Next76 with Foxglove Capital, established two years ago, specializes in Israeli investments and has seen its interest in the Israeli market grow, according to Bandera's operational partner David Solskey. Solskey noted that despite recent conflicts, Israel's economy shows resilience and continues to be a "startup nation" and a "scaling nation."

Following the October 7th attacks, Solskey observed a heightened desire among Australian Jews to support Israel, leading Bandera to explore investment avenues beyond traditional donations. Climate and energy technologies were identified as particularly promising, despite being a smaller investment sector compared to Israel's established high-tech fields. Next76 continues to invest in Australia and the U.S. but is intensifying its focus on Israel, with Solskey indicating that several promising Israeli companies have already been identified.

Concerns exist regarding the Australian market's reception of Israeli businesses amidst geopolitical tensions and a rise in antisemitism affecting the Australian Jewish community. However, Solskey believes that political and social noise can obscure the potential. He highlighted that many Australian firms, investors, and entrepreneurs understand Israel's technological ecosystem. The upcoming Australia Summit on November 19th in Sydney aims to connect Israeli companies with potential investors, fostering business relationships.

Solskey views Australia as an open market for Israeli businesses, noting the significant presence of its Jewish community in corporate and professional life. He also suggested that Australia could serve as a stepping stone for Israeli companies entering the U.S. market. The alignment between Australia's interest in energy, climate, and food technology and Israel's innovation in these sectors, particularly agritech for biofuel and low-carbon fuel markets, presents a strong mutual opportunity.