Israeli firms to lead founding of New York cyber hub
The Israeli venture capital fund Jerusalem Venture Partners (JVP) and corporate innovation expert SOSA have been selected to lead the establishment of a global cyber ecosystem in New York, the New York City Economic Development Corporation (NYCEDC) announced Tuesday.
JVP will establish New York’s first international cybersecurity investment hub, Hub.NYC, with the goal of growing cyber start-ups into major businesses.
Tel Aviv-based SOSA will establish the Global Cyber Center, offering industry-specific events and programming, as well as co-working spaces for start-ups and a virtual testing ground to run simulations.
JVP and SOSA will lead the initiative alongside New York-based academic institutions including Columbia University, New York University, Cornell University and City University of New York.
The initiative forms part of NYCEDC’s Cyber NYC program, which aims to make New York City a global leader in cybersecurity and produce 10,000 jobs within five years. The initiative is fueled an initial investment of $30 million from the City of New York followed by an additional investment of up to $70m. from private funding.
Hub.NYC is set to replicate JVP’s existing model of public-private cyber incubators in Beersheba and Jerusalem that have sought to integrate academia, business and innovation.
The new hub, located inside a 50,000 square foot space in Soho, aims to create industry leaders in fields including financial services, media, health care, smart cities, insurance and retail by leveraging innovation in cybersecurity, artificial intelligence and big-data technologies.
The hub will also serve as a JVP’s headquarters for its activities and portfolio companies in the United States.
JVP, founded in 1993 by Dr. Erel Margalit, has raised $1.3 billion across eight funds and invests in early- through growth-stage companies in a range of industries, including cybersecurity. It has built more than 130 companies and facilitated 12 initial public offerings on the Nasdaq exchange.
Through its increased presence in the city, JVP will aim to support 10 New Yorkbased cybersecurity companies each year, providing strategic guidance, business development support and funding, and partnerships with leading New York academic institutions.
“If the West Coast is the US technology hub, New York can become the international technology hub in close partnership with Israel and the international community to build the next generation of cybersecurity companies to counter the new threats,” said Margalit.
Margalit also highlighted the growing New York City start-up community, which saw approximately $12b. invested in nearly 1,500 deals in 2017. The city is also home to 45 Fortune 500 business headquarters.
“We believe in investment in creating big companies. Quick exits are nice, and we have led 32 of these at JVP, but big companies create real impact and I’m thrilled that this fits with New York City’s main goal of creating a global center of innovation and creating 10,000 new jobs within five years,” said Margalit.
“We are excited and honored to have been chosen by the EDC to run the Global Cyber Center,” said SOSA CEO Uzi Scheffer.
The SOSA-established center will be located in a state-of-the-art venue in the Chelsea neighborhood of Manhattan.
“The Global Cyber Center will serve as a center of gravity for the entire cybersecurity industry and will connect to the finest talent from New York, the States, Israel and our entire global network.”
Founded in 2014 by a group of Israeli investors and entrepreneurs, SOSA seeks to create value for corporations, governments and cities by connecting them to innovative technologies.
The company’s network contains approximately 8,500 start-ups, 150 investors, venture capital funds and major multinational corporations.
Increased investment in New Yorkbased technology, particularly cybersecurity through the NYCEDC, follows the July 2017 launch of the New York Works program by Mayor Bill de Blasio.
The program includes a decade-long series of 25 initiatives to combat economic inequality by creating 100,000 high-paying jobs through investment in industries with good wages and job potential including technology, health care, manufacturing and the creative and cultural sectors.