A first strategic partnership – only a matter of months after its establishment BRM Group has joined Leumi’s venture, The Garage, which invests in, sets up and accompanies startups
BRM is joining Leumi by investing in the innovative venture, established by entrepreneurs with a background in the IDF's elite intelligence and tech units • Advanced negotiations are underway regarding the entry of an additional strategic investor from abroad into the venture • The amount to be invested in the fund is expected to reach a sum of up to USD 160 million • Leumi CEO, Hanan Friedman: “The Garage’s partnership with BRM is a significant milestone on the way to realizing Bank Leumi’s trailblazing vision, strengthening Leumi’s position at the forefront of technological development in Israel’s financial sector”
January 26, 2022
A first strategic partner – only a few months after launching the venture: Bank Leumi is announcing today (Wednesday) that BRM has joined The Garage as an anchor investor. The Garage is a financial venture that invests in, establishes and accompanies startups in the fintech, cybersecurity, data, and AI sectors. BRM will be joining Bank Leumi, which via Leumi Partners – the Bank's real investment arm, holds a 20% stake in The Garage. Advanced negotiations regarding the entry of an additional strategic investor from abroad into the venture are taking place concurrently. The partners investment amount in the fund will be USD 110-120 million, and it is expected to raise up to a total sum of USD 160 million from additional investors.
The Garage was set up several months ago by the high-tech entrepreneurs Omer Nagar, Eyal Redler and Shay Dan. All three served in the IDF's elite intelligence and technology units, and have assumed the positions of CEO, CSO, and CTO, respectively. To date, The Garage has located a number of companies and entrepreneurs that are likely to dovetail with the investment policy, and over the coming weeks initial agreements are expected to be signed with them.
The Garage’s strategic plan is to set up and invest in 15 startups over a five-year period. The Garage is a relevant option both for entrepreneurs seeking to establish a startup with the aim of finding a solution to existing or future technological challenges in the field of finance, cybersecurity, data and AI, as well as early-stage companies that have already developed a service or a product. In both cases, The Garage will enable the startups to work in their natural environment, but will also enable them to receive services, support and consultation on regulatory, financial, management, and technological issues from Leumi, as well as the additional strategic partners. In addition, the startups will be given unique access to relevant experts and data based on the strategic collaboration with Leumi and the other partners. Besides the advantages to be gained by the technology talents from the broad support structure offered by The Garage, an option will be examined to integrate the products and services to be developed by the startups within Leumi’s own systems.
Leumi CEO, Hanan Friedman: “I wish to congratulate our new strategic partners, who are joining us in this investment, and who bring with them substantial added value while expressing their faith in The Garage and its unique potential. We should point out that this is taking place only a few months after we launched one of the most unique and innovative ventures in Israel to invest and support startups and entrepreneurs. The partnership with BRM is a significant milestone on the way to realizing Bank Leumi’s trailblazing vision, guaranteeing Leumi’s position at the forefront of technological development in Israel’s financial sector, based on an operational arm dedicated to the core issues of the model and AI-based new form of banking.”
Eran Barkat, Partner at BRM: “I am extremely proud to be leading a strategic partnership together with Bank Leumi and the entrepreneurs at The Garage, which will bring real value to Israeli entrepreneurs. In this special alliance between Bank Leumi, who are clear leaders of innovation in the worlds of IT, cyber, AI and of course finance – and the entrepreneurs who come from the leading technological units, and our team that has proven its experience in leading entrepreneurs to the global summits, based on years of investment, support and advice – we will be able to create a real home for Israeli startups.”
The Garage CEO, Omer Nagar: “We are more than happy to bring in an additional strategic partner alongside Leumi, which prides itself on many years of experience and successes in the world of investment – and has expressed its faith in the unique model we have built. In the near future, we hope to be able to announce further partners who also seek to join in the success. I am proud that we are already benefiting from a variety of quality talents and innovative ventures looking to work together with The Garage, and it shouldn't be long before we announce our initial investments.”