Erel Margalit founded Jerusalem Venture Partners in 1993 and built it into a firm that has raised over 2 billion dollars, later pioneering physical Startup City campuses across Israel's periphery.
The Builders | Olam.business
Erel Margalit, born January 1, 1961, in Na'an, Israel, founded Jerusalem Venture Partners in 1993, building it into an international venture capital firm that has raised close to 2.2 billion dollars and invested in more than 165 companies. Beyond investing, Margalit pioneered Startup City campuses in Jerusalem, Beer Sheva and the Galilee, physical hubs combining startups, corporations and government to regenerate entire regions rather than back individual companies alone.
Who Is Erel Margalit?
Erel Margalit is an Israeli venture capitalist who founded Jerusalem Venture Partners, one of Israel's first venture capital firms, and later developed a network of Startup City campuses aimed at regional economic development.
At a Glance
| Born | January 1, 1961, Na'an, Israel |
| Education | Hebrew University of Jerusalem; Columbia University, PhD |
| Early career | Led the Jerusalem Development Authority, during which companies including Digital Equipment Corporation and IBM established Jerusalem operations, before leaving in June 1994 |
| Jerusalem Venture Partners | Founded 1993. Operated one of Israel's first government-backed incubators, later expanding into a hybrid venture and growth firm with offices in Jerusalem, Tel Aviv, New York and Kiryat Shmona. Raised close to 2.2 billion dollars and invested in more than 165 companies, with 13 IPOs |
| Focus areas | Cybersecurity, vertical AI, enterprise software, fintech and insurtech |
| Startup Cities | Developed Margalit Startup City campuses in Jerusalem, Beer Sheva, the Galilee and New York, clustering startups, corporations, academia and government to revitalize entire regions |
| Public service | Served in the Knesset for the Israeli Labor Party from February 2013 to October 2017 |
How Did Erel Margalit Build Jerusalem Venture Partners?
Margalit led the Jerusalem Development Authority in the early 1990s, a period during which major technology firms including Digital Equipment Corporation and IBM established operations in the city, before leaving public service in 1994. The same year he founded Jerusalem Venture Partners, initially operating one of Israel's first government-backed technology incubators before evolving into an international venture capital firm.
JVP pursues a hybrid venture-and-growth strategy, making early-stage investments and continuing to participate in follow-on funding rounds to build its equity positions over time, combining capital with hands-on operational support including recruitment, mentoring and help scaling globally. The firm has raised close to 2.2 billion dollars across ten funds and invested in more than 165 companies, producing 13 IPOs.
What Is Margalit Startup City?
Beyond traditional venture investing, Margalit built a network of Startup City campuses that function as business incubators, providing office space, mentoring and business-development support clustered around specific regional themes: cybersecurity in Beer Sheva, food and agriculture technology in the Galilee, and digital health in Haifa. In 2021 Margalit met with French officials including the finance minister to discuss establishing a Startup City in Paris, extending the model internationally.
Frequently Asked Questions
Who is Erel Margalit?
Erel Margalit is an Israeli venture capitalist who founded Jerusalem Venture Partners in 1993 and later developed a network of physical Startup City innovation campuses across Israel's periphery.
What is Jerusalem Venture Partners?
Jerusalem Venture Partners, known as JVP, is an international venture capital firm Erel Margalit founded in 1993 that has raised close to 2.2 billion dollars and invested in more than 165 companies.
What is Margalit Startup City?
Margalit Startup City is a network of innovation campuses Erel Margalit developed in Jerusalem, Beer Sheva, the Galilee and New York that cluster startups, corporations, academia and government around regional economic themes.
Did Erel Margalit serve in Israeli politics?
Yes. Margalit served as a member of the Knesset for the Israeli Labor Party from February 2013 to October 2017.
More From The Builders
- The Builders: Profiles of Jewish Business Builders
- Assaf Rappaport: The Wiz Founder Behind Google's Deal
- The Israeli Billionaires
מי הוא אראל מרגלית?
אראל מרגלית, יליד 1961 בנען, ייסד ב-1993 את קרן ההון הוונצרי Jerusalem Venture Partners, שגייס מעל 2 מיליארד דולר והשקיע ביותר מ-165 חברות. מרגלית הקים גם קמפוסי Startup City בירושלים, באר שבע ובגליל.
The Olam Editorial Team | The Builders / הבונים
How we report: Olam stories draw on public filings, company disclosures and named sources, checked by our editors. Read our methodology · Corrections
