Samsung Global Innovation Center (GIC), part of Samsung Electronics, opened on Sunday a branch in Tel Aviv to invest in Israeli start-ups and entrepreneurs with a focus on software development.
Called Samsung Next, the Tel Aviv office follows similar ones set up in South Korea, San Francisco and New York by the South Korean conglomerate in an effort to stay ahead of competition by entering into early-stage technologies.
“In Israel you have perhaps the greatest amount of talent per square foot than anywhere in the world,” said Kai Bond, the general manager of Samsung Next New York at the opening of the offices at Tel Aviv’s Sarona complex. “If you want to leapfrog competition you can’t wait to play in an established market.”
Samsung Next Tel Aviv will invest and work with start-ups at every stage of development through incubation, investment from seed to Series B, acquisition and partnership, Eyal Miller, Managing Director and CEO of Samsung GIC Tel Aviv, said at a press conference. The idea is to get projects off the ground, help them grow and get them ready for an acquisition by Samsung or any other exit that best suits the companies, he said.
Samsung Next in Tel Aviv will focus primarily in such areas as artificial intelligence, cybersecurity, virtual and augmented reality technologies, the Internet of Things, and big data technologies.
Samsung Next’s Eyal Miller in Tel Aviv (Courtesy: Tomer Flutin)
Samsung Next’s Eyal Miller in Tel Aviv (Courtesy: Tomer Flutin)
“Samsung is known for its hardware,” Miller said, “but we want to build a significant center for investments in software.”
The company believes that its way forward will be by combining its hardware activities with software, he added.
There is no limit to the budget or number of start-ups the company can invest in, said Miller, and investments will be made according to opportunity. Typically, the division will support Israeli companies in the seed and early stages with a range of investment programs providing funding from $250,000 to up to $3 million on a “case-by-case basis,” he said. Samsung will then either acquire the successful companies and incorporate them into its product lines, or help them raise funds to grow further, he noted.