Israel Business Management

Yesterday, CalPERS, the largest pension fund in the US, announced that it will be increasing its investment into venture capital. The percentage now stands at 10% and will grow to 14% of its assets.

This is good news for companies here in Israel looking for a first round of funding or additional money from the VCs. CalPERS has invested in many of the local Israeli VCs. Now, that CalPERS has commited to increased funding, the VCs should benefit and the money should drip into the local market of start-ups.

It is also a good indicator that the economic crisis may be coming to an end. CalPERS is looking to get in on the bottom of the market and the lowest possible valuation of these companies. Investments made at the lowest point, obviously, generate the highest rate of return.

We will have to wait and see if other large players in the market follow suit.