The SouthUp Incubator at Sha’ar Ha-Negev, in the Gaza Envelope, is Back in Full Operation and Adding Four new start-ups 

Gil Shwarsman, CEO of SouthUp: "This is the way to help the rebirth of the Gaza Envelope; In the coming weeks, we will launch a regional impact fund that will operate as part of the incubator”

The events of October 7th and the war in Gaza severely damaged the activity of the SouthUp incubator, which is carried out in two locations – just outside Sderot and in Kibbutz Nir Am. Many of the entrepreneurs and workers in it are residents of the surrounding area and were evacuated with their families. Others were drafted into extended reserve service, and thus the activity was almost completely stopped or was carried out only remotely. 

In recent weeks, the entrepreneurs and workers have begun to return to the incubator center in Sha’ar Ha-Negev, and today the center in Nir Am is open for full work. At the same time, in the incubator, which was established in 2017 to promote technological entrepreneurship in the Gaza Envelope, three moves are announced. 

The first is the addition of four startups to a portfolio that currently includes 27 startups in the fields of AgroTech, FoodTech, Medical, CleanTech, IoT and more. The startups joining are:

Dig Robotics, which develops training and control systems to improve the productivity and efficiency of mining sites. 

VineRobotics, which develops a smart, AI based robotics system for the cultivation and improvement of vineyards. 

MindsView, which offers accompaniment, training and remote medical advice in critical events and treatments using augmented reality technology. 

Robin Medical Systems, which developed a system for tracking the position on and direction of miniature sensors during an MRI scan - which helps in performing the test among children or patients who are in a condition that does not allow cooperation (stroke or dementia, for example). 

The second move is the establishment of an investment fund. "In the coming weeks, we will launch a regional impact fund that will operate as part of the incubator," says Gil Shwarsman, CEO of SouthUp. "The fund will invest in startups in the incubator or in other seed companies that operate or are ready to move their operations to the Western Negev region. We are in contact with institutional and private investors in Israel and around the world and the responses we get are very impressive. "

“After a freeze of almost six months, we see the beginnings of recovery in the area with interest from investors who understand the need to combine investment in start-ups with profit potential along with real Zionism vision assistance to the rebirth of the surrounding area. This is the real answer to bringing it back to being prosperous and flourishing." 

Regarding the addition on of the new startups at this time, Shwarsman says that "it is a real excitement to work with entrepreneurs who are eager in moving to the Western Negev region, and to fulfill the vision of the late Ofir Libstein, Head of the Sha’ar Ha-Negev municipality. Ofir dreamed of turning the area into Isra's ‘Silicon Valley’, and now we are obligated to continue this - as someone who believed in the incubator from the day it was founded and was one of its prominent drivers." 

In addition, BioTip, a FoodTech startup which is operating as part of the SouthUp incubator and  developed disposable stickers that are used as a real time sensor to test the freshness of food products such as meat, fish and poultry to  improve food safety across the food value chain, recently completed a capital raise from private investors and various grants . The raise will allow BioTip to establish the production plant of the stickers in Sderot as well as to complete regulatory processes in the USA and to start marketing activities in this market.

Also ZutaCore, one of the prominent start-up companies that operated at the incubator and remained  in the Sderot area, raised millions of dollars from strategic investors in recent months. ZutaCore, which develops a liquid cooling solution that does not conduct electricity for servers and data centers, thereby significantly reducing electricity consumption and reducing gas emissions, is expending its global infrastructure in support of the rapid growth of the company.

As part of the expansion of the incubator’s activities, a cornerstone laying ceremony will soon take place for the construction of a new complex of 3,300 square-meters, which will be able to accommodate about 60 companies. 

Shwarsman points out that the construction of the new compound building, which will operate near the Sderot train station was initiated by the late Libstein. The complex is expected to become operational in 2026 and will include research and development laboratories alongside work areas.

At the same time, SouthUp has recently won a tender of the Innovation Authority and the Ministry of Economy and Industry to establish an innovation center a technological center for resilience and security in the Western Negev. This is a regional, multi-sector collaboration in the Western Negev led by a group of partners specializing in entrepreneurship and innovation, R&D and academia in the region to promote ClimateTech, civil resilience, defense security (HLS), food security (FoodTech and Agrotech) while creating power-multiplying collaborations to promote a quality and unique ecosystem and intensify activity in the Negev region. Together with SouthUp, the entities which partners in the project are: the Eshkol Union of Western Negev Municipalities (in cooperation with Agrongev - Western Negev Agtech Cluster), the Or movement (in cooperation with Sharona Partners), the International Resilience Center in Sderot (in cooperation with the Sderot Resilience Incubator) and Sapir College. 

In addition to all of this, SouthUp, the association for the Development of Technological Entrepreneurship in the Negev Gate (Israel), was awarded the establishment and management of the Israeli security community HLS, in cooperation with the Ministry of Economy and the Ministry of National Security.

Former Chair of Israel Innovation Authority,  Dr. Amiram (Ami) Appelbaum, Joins Ofir-SouthUp Ventures as Chairman, Bringing Extensive Experience in High-Tech and Innovation

Sha’ar HaNegev, July 30, 2024 – Ofir-SouthUp Ventures Investment Fund announces the appointment of Dr. Amiram (Ami) Appelbaum as Chairman of the fund. Dr. Appelbaum’s appointment marks a significant milestone for the fund and underscores its commitment to advancing the high-tech industry in the Western Negev and investing in companies with high innovation potential.

Operating within the Sha’ar HaNegev Regional Council, just a few miles from the Gaza border, Ofir-SouthUp Ventures was recently established by the SouthUp incubator. The fund focuses on investing in pre-seed, seed, and A-Series startup companies, emphasizing technological innovation and growth for both incubator companies and those in the Western Negev.  Dr. Appelbaum joins a founding team that is a unique mix of local residents with experience in high-tech, venture capital, and corporate law.

Dr. Appelbaum is a prominent figure in the Israeli high-tech ecosystem, with a 40-year career in senior management roles in both the private and public sectors. He has extensive multidisciplinary experience in investment management, research and development, entrepreneurship, and innovation, as well as leading global initiatives in the local and international high-tech industry. Most recently, Dr. Appelbaum served as Chairman of the Israel Innovation Authority (IIA) for six years, a government body that invests approximately NIS 1.7 billion annually in the private sector for research and development purposes. Simultaneously, he served as the Chief Scientist in the Ministry of Economy and Industry, and later in the Ministry of Innovation, Science, and Technology.

Before his public sector roles, Dr. Appelbaum spent 22 years in senior management positions at KLA Corporation (NASDAQ: KLAC), a $106 billion semiconductor manufacturing company, headquartered in Silicon Valley, California.  Dr. Appelbaum held various roles, including Senior Vice President of the global company, President of KLA Israel, CEO of the Global Robotics and Automation Division, and Vice President of Operations for several divisions in both the US and Israel. Under his leadership, KLA's Israeli center in Migdal Ha’Emek, located in the northern part of Israel, became one of the leading high-tech centers in the country.

Dr. Appelbaum holds a Ph.D. in Materials Engineering from the Technion and completed his post-doctoral fellowship at AT&T Bell Labs, followed by a research position at Rockwell International in Dallas, Texas, and Newbury Park, California. He has over 50 scientific and technological publications and six registered patents.

Itai Horstock, Managing Partner at Ofir-SouthUp Ventures, stated: "Dr. Appelbaum's appointment is a significant strengthening for the fund and we are delighted that he accepted our invitation to join our leadership team. Dr. Appelbaum's extensive and diverse experience in the high-tech world, both in government bodies promoting innovation and entrepreneurship, and leading a global company operating in the periphery and growing it into a leading player in Israeli high-tech, will play a key role in the fund's success. His combined experience in scientific research, technological development, and high-level management will be invaluable in identifying growth-potential companies and turning them into successful and innovative startups that will provide economic resilience to the Western Negev and create value for investors."

Dr. Ami Appelbaum commented, "I am delighted to join Ofir-SouthUp Ventures and help achieve the fund's goal of making the Western Negev a significant component of the 'Startup and Scale-up Nation' extending beyond the radius of Tel Aviv area. During my tenure as Chairman of the Israel Innovation Authority and Chief Scientist, I witnessed the capabilities of SouthUp's professional team and the important role it plays in nurturing innovative and successful startups and promoting high-productivity employment in the Western Negev. Now, more than ever, following the horrifying event of October 7, I see the establishment of the fund as a nationally significant move to encourage entrepreneurship in the region.”

“Startups will not come through investments and government grants alone, which are essential, but also by attracting investors who will see both the business potential and the value investment, and who will support and inject capital into startups and growing companies in the area. This will help the Western Negev flourish, not only with blooming fields and traditional industry, but also by building successful high-tech companies that bring high-productivity employment to the region's residents," he stated. 

About Ofir-SouthUp Ventures

Ofir-SouthUp Ventures is a regional investment fund initiated by the SouthUp incubator operating in Sha'ar HaNegev, located few miles from the Gaza border. The fund aims to support and promote startups in the Western Negev and contribute to the region's economy and employment. The fund is named after Sha'ar HaNegev's late council head, Ofir Libstein, who worked tirelessly to bring entrepreneurs and foster an ecosystem of 

innovation and entrepreneurship in the Western Negev. The fund was established to adhere to his spirit and vision to achieve two complementary goals: 

First, that the region's recovery will come through enhancing the entrepreneurial spirit and encouraging technological innovation.  The fund will be central to achieving this goal and will encourage and support startups in the Western Negev through investments and a global professional support network of mentors in collaboration with regional partnerships. 

Second, creating value for investors who combine a value-based and Zionist approach with economic profitability through investments in promising startups in the Western Negev.

The founding team of Ofir-SouthUp Ventures includes experienced entrepreneurs from the high-tech world, residents of the Western Negev, alongside professionals from venture capital and business law sectors. 

Gil Schwartzman, CEO and founder of the SouthUp incubator, and Shahar Belkin, Chairman of the incubator and VP of the high-tech company ZutaCore, which was established within the incubator and now operates in Sderot's industrial area, employing 80 workers and having global operations. Both are residents of the region with rich and diverse managerial and entrepreneurial experience in high-tech. Itai Horstock, with over 25 years of international experience in private equity and venture capital industries, including founding Sherpa Group, leading exits worth over $800 million, and working as a commercial lawyer in M&A at Shearman & Sterling in New York. Yair Estline, founder and managing partner at Estline & Co. in Tel Aviv, with over 25 years of experience as a lawyer in corporate and transaction markets, specializing in financing, investments, mergers, and acquisitions, and a former partner in Sullivan & Cromwell's corporate department in New York.

The fund's board of directors and investment committee include several pillars of the Israeli high-tech industry, such as serial entrepreneur Dr. Yossi Vardi, Orna Berry, Amichai Steinberg, Amnon Eshet, Ilan Weingarten, and Rafi Nevo, Head of Innovation at the Kibbutz Industry Association and CEO of the Kibbutz Nursery Fund for Entrepreneurship and Innovation.

Since its establishment in 2017, SouthUp has grown over 60 startups, raised a total of $120 million, and provided over 300 jobs to the region's residents. The incubator offers entrepreneurs not only the fund's capital resources but also a broad platform to help them grow and become successful high-tech companies. Support for companies spans all stages, from spacious offices and office services in two incubator complexes (one in the Sha'ar HaNegev Regional Council area and the other in Kibbutz Nir Am), advanced laboratories, and office services. Additionally, entrepreneurs will benefit from the incubator's extensive connections within Sha'ar HaNegev - Sapir College, industrial bodies, and government entities, primarily the Israel Innovation Authority. Moreover, they will receive guidance from a network of mentors from Israel and the USA who will assist in creating global connections.