Named after Ofir Libstein: A new fund launches with approximately $30 million for investments in the Negev

The Ofir-SouthUp Ventures fund, which invests in technology companies operating in the Western Negev or relocating their operations there, will begin making its first investments in the near future, Calcalist has learned. At the same time, the fund continues to raise capital, with estimates suggesting it will reach between $20 million and $30 million.

Investors in the fund include the kibbutzim Kfar Aza, Yakum, and Ma'agan Michael, entrepreneurs Dov Moran, Shlomo Kramer, Yehudit (Dita) and Yehuda Bronicki, the Zim investment fund, the Jewish Community Foundation San Diego, and other private investors. The fund is headed by Dr. Ami Appelbaum and Itai Horshtuk. The founding team also includes Shahar Belkin, Gil Shwartzman, Rafi Navo, Adv. Yair Astelain, and Dr. Yaarit Weinberg.

The fund is named after the late Ofir Libstein, head of the Sha'ar HaNegev Regional Council, who was killed on October 7. The joining of Kibbutz Kfar Aza has special significance, as the community chose to become a partner in the fund’s vision and initiative.

The fund was established as the investment arm of the SouthUp incubator, which has been operating in Sha'ar HaNegev since 2017. During its years of operation, the incubator has supported over 70 startups. A significant portion of these companies chose to continue operating in the Western Negev, currently employing hundreds of people in high-quality high-tech jobs.

Even before completing its first closing, the fund made its first investment in the company ZutaCore, which operates in the Sapir Industrial Zone. The company, which develops advanced cooling solutions for artificial intelligence chips, recently completed a Series C funding round of approximately $100 million.

"I left the Innovation Authority and came to say goodbye to Ofir, who wanted to sign me on for a consulting position, and two months later he was murdered on October 7. This was Ofir's will, who asked me to help the region and wanted an economic and social leap and to create high-productivity jobs, and that is what we are striving for," says Dr. Ami Appelbaum, chairman of the Ofir fund.

According to Appelbaum, despite skepticism from some investors, the Western Negev holds huge business potential and should become a significant innovation hub.

Parallel to the expansion of the fund's activities, the SouthUp incubator continues to grow, with 27 startups currently operating within it. At the same time, the OfirTech park is being built in the Sha'ar HaNegev Regional Council, spanning approximately 3,000 square meters and expected to open in the first quarter of 2027.