Erel Margalit
Encyclopedia
Erel Margalit is an Israel
i high-tech and social entrepreneur. He is the founder and managing partner of the Jerusalem-based venture capital
firm Jerusalem Venture Partners (JVP)
. In 2005, Forbes
international business magazine selected Margalit as the top-ranking non-American venture capitalist on its prestigious "Midas (The Golden Touch) List.” In 2010, The Marker Magazine named him the best venture capitalist in Israel. Margalit is a founder of the Avoda Now movement. In April 2011, he submitted his candidacy for chairman of the Israeli Labor party but ten days before the primary he decided to leave the race and back Isaac Herzog as chairman.
the eldest of three siblings. His father, Itzik Margalit, was one of the founders of Kfar Haim
, and his mother, Mickey, was a founding member of Moshav
Avihail. In 1969, the family was sent on a mission to Detroit, Michigan
where his father was head of a local Hebrew school. While in high school in Michigan, Erel became a point-guard on a local basketball team. After returning to Israel in 1971, he attended Rene Kassen High School in Jerusalem where he continued to play basketball. Recognition of his talent led to an offer to join the Israeli youth team, but he declined in favor of serving in an IDF
combat unit. He served in Golani
"s "Orev" unit as an operations officer, reaching the rank of sergeant major. As a reservist in 1982, he fought in the First Lebanon War with the IDF's airborne anti-tank division.
Margalit studied philosophy, logic, and English literature at the Hebrew University of Jerusalem
, where he met his future wife. In 1985 Margalit moved to New York to attend Columbia University
where he continued towards a doctorate in philosophy and logic. During his studies he was exposed to Michael Porter’s
"The Competitive Advantage of Nations," which influenced his doctorate thesis on the subject, "The Entrepreneur as a Leader in the Historical Process."
In response to the First Intifada
and the anti-Israeli activities on American campuses, Margalit organized a dialogue group between Israeli and Arab students. Together with other Israeli doctoral students, among them Yossi Dahan
and Yossi Bachar, he established groups on eight leading campuses.
Margalit is married to Debbie and has three daughters: Tair, Eden and Maya.
. He also worked in cooperation with American governors, among them Mario Cuomo
of New York
, Pete Wilson
of California
, James Florio
of New Jersey
and Rodney Wallace of Massachusetts. Margalit helped to attract dozens of technology companies to Jerusalem with the aim of turning the city into a high-tech capital for Israel. In three years, he succeeded in bringing in 70 large technology companies, including Digital
and IBM
. In June 1994, Margalit left the JDA and embarked on an independent career.
, which as of April 2011 was valued at over $2 billion.
in the general elections. He joined the Labor Party and expressed his support of Peretz's social agenda. Margalit promoted his vision of economic growth whereby the ultra-orthodox and Arab populations would be integrated in the labor market in Israel, thus taking them out of poverty and alleviating pressure on the middle classes. In addition, Margalit presented a plan for bringing the periphery of Israel closer to the center of the country, both economically and socially.
On April 27, 2011, saying he could "no longer watch from the sidelines as the political situation in Israel deteriorates", Margalit announced his intention to run for the chairmanship of the Israel's Labor Party.
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
i high-tech and social entrepreneur. He is the founder and managing partner of the Jerusalem-based venture capital
Venture capital in Israel
Venture capital in Israel has rapidly developed from the early 1990s, and has about 70 active venture capital funds, of which 14 international VCs with Israeli offices, and additional 220 international funds who actively invest in Israel...
firm Jerusalem Venture Partners (JVP)
Jerusalem Venture Partners
Jerusalem Venture Partners is an Israeli-based venture capital firm, with offices in the JVP Media Quarter in Jerusalem and in New York City.-History:...
. In 2005, Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
international business magazine selected Margalit as the top-ranking non-American venture capitalist on its prestigious "Midas (The Golden Touch) List.” In 2010, The Marker Magazine named him the best venture capitalist in Israel. Margalit is a founder of the Avoda Now movement. In April 2011, he submitted his candidacy for chairman of the Israeli Labor party but ten days before the primary he decided to leave the race and back Isaac Herzog as chairman.
Biography
Erel Margalit was born in Kibbutz Na'anNa'an
Na'an is a kibbutz near the city of Rehovot in Israel. Located within the Central District, it falls under the jurisdiction of Gezer Regional Council and borders the villages of Ganei Hadar, Ramot Meir and Sitria....
the eldest of three siblings. His father, Itzik Margalit, was one of the founders of Kfar Haim
Kfar Haim
Kfar Haim is a moshav in central Israel. Located in the coastal plain near Netanya, it falls under the jurisdiction of Hefer Valley Regional Council. In 2006 it had a population of 500....
, and his mother, Mickey, was a founding member of Moshav
Moshav
Moshav is a type of Israeli town or settlement, in particular a type of cooperative agricultural community of individual farms pioneered by the Labour Zionists during the second aliyah...
Avihail. In 1969, the family was sent on a mission to Detroit, Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
where his father was head of a local Hebrew school. While in high school in Michigan, Erel became a point-guard on a local basketball team. After returning to Israel in 1971, he attended Rene Kassen High School in Jerusalem where he continued to play basketball. Recognition of his talent led to an offer to join the Israeli youth team, but he declined in favor of serving in an IDF
Israel Defense Forces
The Israel Defense Forces , commonly known in Israel by the Hebrew acronym Tzahal , are the military forces of the State of Israel. They consist of the ground forces, air force and navy. It is the sole military wing of the Israeli security forces, and has no civilian jurisdiction within Israel...
combat unit. He served in Golani
Golani
Golani may refer to:*Golani Brigade, an Israeli infantry brigade*Golani Family, an Indian royal family*Golani Junction, a location in Israel*Rivka Golani , an Israeli viola player* Golani, anti-communist protestors, from the Romanian Golaniad...
"s "Orev" unit as an operations officer, reaching the rank of sergeant major. As a reservist in 1982, he fought in the First Lebanon War with the IDF's airborne anti-tank division.
Margalit studied philosophy, logic, and English literature at the Hebrew University of Jerusalem
Hebrew University of Jerusalem
The Hebrew University of Jerusalem ; ; abbreviated HUJI) is Israel's second-oldest university, after the Technion – Israel Institute of Technology. The Hebrew University has three campuses in Jerusalem and one in Rehovot. The world's largest Jewish studies library is located on its Edmond J...
, where he met his future wife. In 1985 Margalit moved to New York to attend Columbia University
Columbia University
Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the...
where he continued towards a doctorate in philosophy and logic. During his studies he was exposed to Michael Porter’s
Michael Porter
Michael Eugene Porter is the Bishop William Lawrence University Professor at Harvard Business School. He is a leading authority on company strategy and the competitiveness of nations and regions. Michael Porter’s work is recognized in many governments, corporations and academic circles globally...
"The Competitive Advantage of Nations," which influenced his doctorate thesis on the subject, "The Entrepreneur as a Leader in the Historical Process."
In response to the First Intifada
First Intifada
The First Intifada was a Palestinian uprising against the Israeli occupation of the Palestinian Territories. The uprising began in the Jabalia refugee camp and quickly spread throughout Gaza, the West Bank and East Jerusalem....
and the anti-Israeli activities on American campuses, Margalit organized a dialogue group between Israeli and Arab students. Together with other Israeli doctoral students, among them Yossi Dahan
Yossi Dahan
Yossi Dahan is founder and chairman of Adva Center), a lecturer in philosophy and law, and a leading activist on social justice issues in Israeli society.Dahan earned his PhD at Columbia University under the supervision of Thomas Pogge...
and Yossi Bachar, he established groups on eight leading campuses.
Margalit is married to Debbie and has three daughters: Tair, Eden and Maya.
Jerusalem Development Authority
Returning to Israel in 1990, Margalit began to work at the Jerusalem Development Authority under Uzi Wexler, promoting business development and technological entrepreneurship in Jerusalem under Uzi Wexler. During this time, he worked closely with Teddy KollekTeddy Kollek
Theodor "Teddy" Kollek was mayor of Jerusalem from 1965 to 1993, and founder of the Jerusalem Foundation. Kollek was re-elected five times, in 1969, 1973, 1978, 1983 and 1989...
. He also worked in cooperation with American governors, among them Mario Cuomo
Mario Cuomo
Mario Matthew Cuomo served as the 52nd Governor of New York from 1983 to 1994, and is the father of Andrew Cuomo, the current governor of New York.-Early life:...
of New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Pete Wilson
Pete Wilson
Peter Barton "Pete" Wilson is an American politician from California. Wilson, a Republican, served as the 36th Governor of California , the culmination of more than three decades in the public arena that included eight years as a United States Senator , eleven years as Mayor of San Diego and...
of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, James Florio
James Florio
James Joseph "Jim" Florio is a Democratic politician who served as the 49th Governor of New Jersey from 1990 to 1994, the first Italian American to hold the position...
of New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
and Rodney Wallace of Massachusetts. Margalit helped to attract dozens of technology companies to Jerusalem with the aim of turning the city into a high-tech capital for Israel. In three years, he succeeded in bringing in 70 large technology companies, including Digital
Digital
A digital system is a data technology that uses discrete values. By contrast, non-digital systems use a continuous range of values to represent information...
and IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
. In June 1994, Margalit left the JDA and embarked on an independent career.
Jerusalem Venture Partners (JVP)
In 1993, Erel Margalit founded the JVP venture capital fund. He created a new model that integrated an active management approach with a strategy of forming an international market. Under his leadership, JVP has been instrumental in building dozens of high-tech startups into global corporations operating in Israel, the United States, Europe and Asia. Under his leadership, the JVP Fund currently runs investments of approximately 850 million dollars in eight funds, and specializes in investments in media, internet, mobile telephony, advertising and gaming industries. Erel has personally led seventeen successful exits, including the sale of Chromatis Networks, to Lucent Technologies in 2000 for $4.82 billion, the highest amount ever paid to an Israel company and the IPO of Qlik TechnologiesQliktech
QlikTech is a business intelligence software company based in Radnor, Pennsylvania. QlikTech is the provider of QlikView, a business intelligence solution that delivers enterprise-class analytics and search. Its in-memory associative search technology makes calculations in real-time, enabling...
, which as of April 2011 was valued at over $2 billion.
The Media Quarter
In 2006, Erel Margalit formed and developed the new Media Quarter in and around the historical train station compound in Jerusalem. The Media Quarter, JVP Media Labs, a technological incubator, and The Lab, an arts incubator for Jerusalem performing artists, operate side by side. Currently over 300 young employees work in the Media Quarter, including engineers, artists, authors, filmmakers, and cultural figures. The Media Quarter has become one of the most innovative cultural and business scenes in Israel.In the Community (Bakehila)
In 2002, Marglit founded the social organization "Bakehila" (In the Community) as a means of reducing the socio-economic gap affecting underprivileged children in Jerusalem. Bakehila runs educational programs in the disadvantaged neighborhoods of Jerusalem with the goal of raising the students' academic achievements, and promoting personal and social growth among these children. Thousands of students from Jerusalem attended the program during its first eight years.The Lab (Hama'abada)
Following the events of the second intifada and the massive departure of young artists from Jerusalem, Erel Margalit created The Lab (Hama'abada) to keep and attract young artists in Israel’s capital. The Lab provides support and assistance to these artists, providing venues for young Israelis to create, perform, and receive feedback on their work.2005 Elections
During the 2005 election campaign, Margalit was one of the first businessmen to support Amir PeretzAmir Peretz
Amir Peretz is an Israeli politician and member of the Knesset for the Labour Party. He is a former Defense Minister of Israel and former leader of the Labour Party, having left those positions in June 2007....
in the general elections. He joined the Labor Party and expressed his support of Peretz's social agenda. Margalit promoted his vision of economic growth whereby the ultra-orthodox and Arab populations would be integrated in the labor market in Israel, thus taking them out of poverty and alleviating pressure on the middle classes. In addition, Margalit presented a plan for bringing the periphery of Israel closer to the center of the country, both economically and socially.
Avoda Now Movement
Since his initial support of the Labor Party, Margalit grew disillusioned with the direction of the party and its leadership. On January 17, 2011 the Chairman of the Labor Party, Ehud Barak, announced his resignation from the Labor Party and the establishment of a new party – “Atzmaut,” (The Independence Party) http://www.nypost.com/p/news/international/barak_dumps_labor_CWb7ohYXBGv63bjlERUR2K. Two days after this announcement Margalit helped to found the "Avoda Now" movement together with prominent members of Israel’s business, technology and cultural community, calling for a revival of the Labor Party. The movement launched a public campaign calling the people to join the Labor party lines; with the aim of renewing its institutions, restore its social values, and choose new dynamic leadership.On April 27, 2011, saying he could "no longer watch from the sidelines as the political situation in Israel deteriorates", Margalit announced his intention to run for the chairmanship of the Israel's Labor Party.