The Company was formed on 16 August 2007. It has been established to capitalise on the technology and commercial potential of Israel related companies, particularly in the internet and WEB 2.0 sector, with financial and commercial support.
MGIC will invest in early stage internet companies in amounts ranging from approximately $100,000 to $300,000. Investee companies will usually have the following characteristics that fit within MGIC's investment model:
- Companies which require only limited funds to reach the "go to market" stage (typically 6-9 months).
- Product success and business case that can be identified relatively quickly.
- Revenue will typically be generated by advertising.
- Products and services with commercial application offered via the internet.
Target companies' business models will typically focus on the following:
- Advertising models: based on the number of unique users the company could share its web site for promotions, advertising and cooperation with media players.
- Subscription users: usually using the web site is free but extra features may require registration and payment.
- Content for sale: through syndication models to media and other users.
The Directors believe that these accepted models could create revenues for target companies relatively quickly, while the key parameter for success is to attract users with an attractive application. Companies with attractive applications are often targeted by the large internet and media companies, such as Google, Fox, CBS and eBay.
MGIC also plans to provide support services to companies in which it invests with a focus on raising additional capital which may provide an exit for the Company.
