The new model will replace the current method in which start-ups donate to Tmura options exercisable in the event of a sale or IPO by the company.
Terra Venture Partners LP will donate the carried interest of its new Terra II Fund to Tmura - The Israeli Public Service Venture Fund. The new model will replace the current method in which start-ups donate to Tmura options exercisable in the event of a sale or IPO by the company.
Terra co-founder and general partner Dr. Astorre Modena will join Tmura's advisory committee of leading Israeli venture capitalists and high-tech entrepreneurs.
Tmura, founded in 2002, is an NGO which seeks to increase the involvement of the high-tech community in non-profit activity in Israel, with a focus on education and other youth related initiatives. It currently donates to more than 100 NGOs. The carried interest model will allow Tmura to indirectly hold stakes in Terra portfolio companies, increasing Tmura's chances of realizing a donation.
Companies which have donated to Tmura include Outbrain Ltd., Waze Ltd.,Intucell Systems Ltd., which was acquired by Cisco Systems (Nasdaq: CSCO), and Xtremio, which was acquired by EMC Corporation (NYSE: EMC). Tmura made $500,000 on the Xtremio exit, and $400,000 on the Intucell exit. Other companies which made donations to Tmura at their exits include Crossrider, DesignArt Networks, Wanova, WorkLight, and The Gifts Project.