Jerusalem, Israel June 25, 2013: OurCrowd, the leading equity crowdfunding platform for accredited investors, announced today that as part of its commitment to social responsibility, it will require its Israeli portfolio companies to commit a portion of their equity to Tmura – The Israeli Public Service Venture Fund. Tmura is a non-profit organization that enables early-stage companies to donate equity stocks and stock options, and the actual contribution will be realized when the company makes an “exit” or goes public. OurCrowd is the first funding platform in the world to require its companies to make this type of commitment as a condition to closing funding rounds.
Tmura Executive Director Baruch Lipner said, “OurCrowd is leading by example, and I hope that it will encourage others to do the same. Tmura’s mission is to develop a culture of giving within the high-tech sector, and share the wealth that is being created by the country’s technology industry with the broader society. We applaud OurCrowd for being the first to make social responsibility a commitment from each of their portfolio companies.”
OurCrowd will require its Israeli portfolio companies to donate equity to Tmura as part of the closing of any funding round. Upon a successful exit, the company is encouraged to direct 90% of the proceeds to projects of its choice, while the remaining 10% is left to Tmura’s discretion to allocate the proceeds either to charities or to help secure their ongoing budget and allow the continuation of their work with the community.
Tmura, a foundation with a unique business model, was established in 2002 by leading Israeli venture capital funds to involve the high-tech sector in supporting charitable activities. The model is simple and powerful: early-stage companies give Tmura a warrant, convertible (at exit) into a small portion of their equity. If the company succeeds, Tmura sells its shares and donates the proceeds to charities in Israel; the focus is on education and youth-related activities, and the companies can indicate which organizations they want to support.