The flourishing of the defense-tech sector has also created quite a few related fields around it. The new (and hot) name in the global financial sector is Value Gateway Capital Partners, an entity whose goal is to build the economic bridge that will enable foreign investors, funds and communities in the U.S. and Europe to inject quality capital directly into the growth engines of the Israeli economy, particularly into the defense-tech sector. And yes, it works.
For many decades, Israel's defense industry, like many other countries in the world before regional wars and unending conflicts, operated within a closed ecosystem. Projects were measured in years, massive government budgets fueled slow developments, and the distance between the civilian market and operational systems was almost unbridgeable. However, the reality on the ground has changed. Modern threats, from sophisticated cyberattacks to drone warfare, now demand flexibility, speed and the adoption of thinking patterns from the high-tech and Big Tech worlds. The era of instability has brought with it the flourishing of one significant sector – defense-tech – and with it came the large sums of money seeking promising investment channels
Against this backdrop, the latest move by the Value Advanced Investments group marks a significant leap forward in how global capital meets defense and dual-use technologies in Israel (those that can also be applied in the civilian sector). The group, which manages $1.4 billion in assets and has raised an additional $3 billion for international funds, announced the establishment of a new international operational arm: Value Gateway Capital Partners.
Bar Clara Mendez McConnon, who is also a partner in the venture, was chosen as the CEO of the new entity. Behind the complex name that has now risen to the top of the alternative investment world is someone who held a senior management role in Meta's Global Business Group in Ireland. The combination of her management background in the Big Tech world and her previous service in the IDF Foreign Relations Unit has created a unique profile connected to both operational needs and global economic dynamics
End-to-End Service
According to Mendez McConnon, one of her current goals is to build an institutionalized and secure economic bridge that will enable foreign investors, funds and communities in the U.S. and Europe to inject quality capital directly into the growth engines of the Israeli economy, primarily the defense-tech and dual-use technology sectors. "We are essentially connecting the dots and ensuring that the connections and objectives are realized," she says.
Since the establishment of the international arm, the company has been engaged in establishing and managing a dedicated infrastructure for raising capital from family offices, private investors and financial institutions seeking to combine financial investment with a strategic connection to Israel. "The service we provide is end-to-end. Its main goal is to create a focused platform for value creation for all involved parties and cross-border connections."
At this point, it is worth noting that the Value group is currently recognized as a leading player in alternative investments, characterized by a distinct institutional DNA thanks to the experience and reputation accumulated by the group's managing partners over the years, in key roles and as owners of leading management and investment entities.
For decision makers, the importance of a platform like Value Gateway Capital Partners lies in its professional screening and regulated access to the local market. "Israel has several quite prominent advantages in the international arena," Mendez McConnon notes. "Developments born in the IDF's elite technological units, such as 8200 and Talpiot, are proven in real-time under complex operational conditions. Furthermore, and our investors abroad appreciate this, many technology companies in the defense sector generate innovations, developments and dual-use products, originally built for stringent military needs and now successfully applied in protecting critical civilian infrastructure, complex logistics, border security and organizational software."
Another role of the new arm is to identify companies with scalable potential, provide them with financial and managerial resources, and open international markets for them.
Mendez McConnon also provides her own perspective on the success of Israeli players in the defense-tech arena: "Defense companies rely entirely on field personnel. Most employees have served, or are still serving, in the military, and their innovations are tested in real-time on all fronts. I can clearly identify the highly resilient, performance-oriented and success-oriented Israeli DNA, which is unlike anywhere else in the world."
Access to Quality Deals
Mendez McConnon explains that the company operates as a principal investor, managing the entire lifecycle of the investment on the ground. "The major challenge facing international investors is the ability to gain access to truly high-quality deals. Providing regulated access to this market, with full legal, regulatory and tax navigation, is the core of the new activity. We essentially serve as the essential meeting point between traditional financial expertise and a deep technological understanding of the Big Tech era."
For Mendez McConnon, who resides on the border in northern Israel, every success story is much more than just another deal. "If we succeed in raising money for a company that protects phones from cyber intrusions, or a company specializing in fire detection, or one that develops technology for detecting underground activity, for me, I know we have contributed to the resilience. Not only of the companies in which the money was invested, but also of the citizens across the country, who at the end of the day will feel more protected and secure."
"In a world where security power relies heavily on rapid innovation and the ability to mobilize smart capital to the right places, building the international economic bridge we have established and our initial successes are a vital step in preserving tomorrow's technological advantage and strengthening Israel's status as a security power," she concludes.
For more info: vinvest.co.il
Partnered with Value Gateway Capital Partners
