While many in corporate venturing have had distinguished careers, few could make as grand a boast of their prior dealmaking success as US-based media tracking company Nielsen’s corporate venturing unit chairman Itzhak Fisher (pictured).
Fisher said in a January interview, talking about Pereg Ventures with Global Corporate Venturing: “I took a company public at a $1bn valuation. Since then I have been private equity investing my own money and friends’ money.”
Fisher secured this deal in the 1990s. He was founder and chief executive of RSL Communications, a Nasdaq-listed company. At RSL, Itzhak bought all the shares of an internet protocol telephony company, Delta Three, for $10m in 1997 – three years later it was worth $1bn on Nasdaq.
With such prior success, Fisher is making a sizeable investment in the Nielsen fund, which is different from many in corporate venturing. He plans to invest $2.5m himself in the $50m fund.
One member of our advisory board said Nielsen was deserving of the award as probably the “biggest legitimate fundraiser” among newcomers, for raising funds from third parties. Most corporates generally start their units with balance-sheet money.
Pereg’s chief executive is Claudia Iannazzo, formerly managing director of Red Door Consulting.
Iannazzo said in Pereg’s launch statement in December: “The sector Pereg Ventures serves is growing rapidly in response to dramatic changes in media, advertising and consumer behaviours.
“Advertisers are seeking smarter ways of deploying their $500bn global advertising spend, while consumers are shifting the way they engage with media and have more choice than ever before.
“In direct response to feedback from entrepreneurs across the sector, we are filling a void in the early-stage funding cycle before significant expansion capital is required but after ventures have already attracted their initial seed investment.”
Pereg Ventures said at the launch it would focus predominantly on the US market, while looking to back Israeli innovators poised to enter the US economy.
The corporate venturing unit expects an imminent close on its fundraising with another strategic backer besides Nielsen.
Fisher said. “Other strategic investors are in discussions to invest so they can get insights around big data, analytics, media and consumer. They sit at the table and see where the market is going, what is coming.”
Needless to say, with the clout Nielsen currently has in its market, it is likely to be an attractive partner for many start-ups. Fisher said. “Three to four start-ups pitch to me in a week, because in consumer, media and analytics we are the largest research company in the world. They all want to work with us.”
Fisher works for both Nielsen and Pereg, acting as a bridge between the two. He said: “I am head of global business development of Nielsen for 75% of my time and for 25% of my time I do the fund. This is the most efficient way and they are in the fund structure as an LP [limited partner – investor] not the GP [general partner – fund manager]. They are not on the investment committee and they do not have right of first refusal.”
The firm is looking to partner other investors on all its deals. Fisher said: “We will never do a round on our own. We will invite other venture funds which provide strategic benefits as well as, but not only, money.”
With the pedigree of the dealmakers involved at Pereg, and the prowess of its corporation, we expect a big splash from the unit as it starts investing.
Shortlist
China Aerospace Science and Industry Corporation – RMB1bn ($159m)
Evonik – $130m
FIS – $500m fund
Monsanto Growth Ventures
Netease – raising $316m
Nielsen (Pereg Ventures) – raising $50m
Shell Technology Ventures
Skype New Ventures