The Challenge Fund - Etgar has signed an agreement with Coca-Cola Co. (NYSE: KO) under which it will locate technologies and knowledge opportunities on the firm's behalf and manage its investments in Israel. Challenge will also be able to join any investment that Coca Cola makes locally.
The latest agreement follows the framework agreement Coca Cola signed in February with the Chief Scientist on collaboration in locating know-how and innovative technologies in Israel.
Challenge Fund managing partner Tamar Ciehanover said, "We will look for technologies at every stage from initial R&D to commercialization. We're looking for ideas that can contribute to Coca Cola's technological leadership in the non-alcoholic beverages industry. Coca Cola's goal is to assess innovative technologies and move forward swiftly with the ones that are the most suitable, through its substantial presence on the global market. The team at Challenge will support these technologies in Israel, parallel to Coca Cola's support worldwide."
Ciehanover added that the activity with Coca Cola will be carried out alongside Challenge's traditional investment activity. The fund is currently making several new investments. The agreement with Coca Cola is exceptional in the Israeli venture capital industry. Corporate entities have invested and continue to invest either in companies directly or in venture capital funds themselves, but this agreement is unlike any of these models.
While acting under its agreement with Coca Cola, Challenge intends to continue its regular investment activity, with investments likely to be made in both public and privately-held companies. Challenge has not raised a new fund since 2000, and the latest agreement with Coca Cola may well provide it with the impetus it needs to do so.