Internet company Yahoo’s first accelerator programme will launch in Israel in September 2015, in partnership with computing company Microsoft and venture capital firm Entrée Capital, Globes reported on Sunday.
The SigmaLabs accelerator is set to welcome four or five startups for its first cohort, and will focus on the big data, video, financial technology and native advertising sectors.
The programme was originally conceived by Entrée partners Aviad Eyal and Martin Moshal. It will be managed by Eran Bielski, associate analyst of Entrée.
Linat Wager, head of innovation and startup relations at Yahoo Israel, Yoelle Maarek, vice president of research for Europe, the Middle East and Africa and head of Yahoo Labs in Haifa, and Ido Yablonka, head of Yahoo in Tel-Aviv, will support Bielski.
Microsoft is providing $150,000 of cloud-based software and tools to the participating startups, and mentorship will also come from data storage company EMC, Aleph VC Fund and Lool Ventures will offer mentorship.
The top graduating startup will be entitled to a $250,000 convertible note from an unnamed VC firm, while remaining companies that gain high scores will be entitled to $25,000 in convertible debt financing.
SigmaLabs will require graduate startups to support subsequent groups, which they may do by giving equity to the accelerator. It will be located in Tel Aviv, but Yahoo and Entrée hope to eventually expand the programme to Haifa and southern Israel as well.
Wager said: “Yahoo does not invest in startups and we do not have an investment fund like Google Ventures or Microsoft Ventures. Therefore, we wanted a major partnership that will bring knowhow and experience.”