Eitan Kyiet is the CEO of Road2 Ventures, an early-stage venture fund / innovation center based in Haifa Israel. Road2 offers a combination of investment funding, knowledge from its affiliates, and industry partners to help position Israeli tech companies for success and is a combination of a venture capital fund, accelerator, and innovation lab. Road2 is an ecosystem for entrepreneurs, industry leaders, and investors that develops startups into inspiring business through networking, funding, and technology. Eitan has been in the innovation and venture space for decades and is a veteran of the Israeli startup ecosystem.
AV: Thanks for taking the time to speak with me! It has been great to learn about the startup ecosystem in Israel, can you explain a bit what about what makes Israel a Startup Hub? And Why Haifa?
EK: Israel is known to be a Technology Hub due to the concentration of companies, academic graduates, and the history of startup formation in this country. While most people associate Israeli startup scene with Tel Aviv, we chose Haifa for a few reasons. There are numerous articles and books that try to explain the miracle of the Israeli ecosystem innovation. Many theories were brought up, and they probably all have merit in explaining this. My humble take on the success is a combination of an inherent disrespect for authority in Israeli culture and a constant thought that “we can do better”. Combine that with our very dynamic society and responsibilities imposed on all of us at a young age in the Israeli military – where we are constantly asked to do more with less – creates an incentive for creative risk-taking.
Haifa stands out in that it was, in essence, the birthplace of the Israeli hi-tech scene, that initially grew out of military innovation (Haifa hosts some of Israel’s most prominent defense companies). As Haifa is also a heavy industry hub, there are many opportunities in the field of smart industry. Historically, another classic spin-off from military technologies went into the med-tech space and many of the multinationals located in Haifa are results of M&A’s conducted over the years.Haifa is home to 80 international companies, 185k academic graduates, 9 medical and research institutions, 600 factories / industrial facilities, and 5 major ports. Haifa is the heart of Israel’s industrial northwest, and also home to a large portion of the Israeli Arab population. Haifa’s unique diversity includes successful international brands, a strong infrastructure, and startup-minded attitude, and access to top talent. Haifa is home to the first and largest high-tech park to be established in Israel, to this day. Google, Amazon, Philips, Intel, and many others have chosen Haifa as their R&D centers. A significant portion of Israel’s heavy industry and major international seaports, world-renowned academic institutions, research centers and Nobel laureates, it provides a unique environment to fund innovative businesses. We want to empower Israeli startups from all backgrounds including minorities and those who might not be from a fancy institution and hope to positively impact the Israeli economy through the economic empowerment of founders from all backgrounds.
AV: Can you tell us a little bit about your background?
EK: I have worn many hats, but have been around the venture / innovation space for many years. I serve as the CEO of Road2, an innovative value-added hub with AI-supercomputer abilities. Previously I held senior management positions in publicly traded companies such as Vice President of Business Development at Kamada (NASDAQ:KMDA), Chief Operating Officer at PolyPid (NASDAQ:PYPD), senior operations and business planning position in Biosense Webster (a Johnson and Johnson Company) as well as several business development and strategic alliance positions with Lumenis (NASDAQ: LUMI).
I started his career as a commercial lawyer where he gained over 13 years experience as a legal practitioner specializing in the hi-tech and medical device arenas in international transactions, venture, capital funds, investments, corporate law, and mergers and acquisitions both as a partner in a major law firm and as legal counsel to Elbit Ltd. (NASDAQ: ELBTF).
In parallel to my business activities, for the past 15 years, I have led Friendly Angels Club, an angel investment group that boasts several IPOs, M&A and significant venture capital up-rounds.
I hold an L.L.B. degree from Haifa University and a master’s degree in Business Management from Haifa University Graduate School of Business.
AV: Very cool, and from my understanding, Road2 is a bit different from a normal early stage VC fund, could you expand a bit on how Road2 is structured / its mandate for investing?
EK: In line with the risk-taking atmosphere we are trying to promote in our Haifa-based ecosystem, we try to look outside the box on several levels: We try to tune into the needs, wants and wishes of entrepreneurs that are not the classical “fruit of the loom” Technion or Israeli military tech graduates, and as a result have a relatively large number of female entrepreneurs and entrepreneurs from the Arab population. We try to de-risk our investments by leveraging funds we receive from the Israeli Innovation Authority to provide early-state startups with significant help on AI (we have a super-computer on premises, and an eco-system of AI service providers), and to tune tech solutions with real industry problems. This is why we connect large corporates to startups in beta-sites and design partnerships. As we jump on board at an early stage, we strive to participate in the startups’ success on an equity-investment basis.
AV: What are the main verticals / horizontals that Road2 Looks at ?
EK: Our main verticals that Road2 seeks to invest in include 3E Sustainable energy, the AI lab, DigitalHealth, Gaming, and Industry 4.0. What we call 3E is Environment, Energy, and Sustainable economy. The AI lab helps our portfolio companies foster their models and take them to the next level. Digital health will revolutionize healthcare as digital technology is applied to the industry. Our gaming program partners with Unity and the Tiltan School for Design to help promote the design and development of games. Industry 4.0 refers to the rapid changes from automation, and interconnectivity in industry. Within all of these verticals, we view AI as a horizontal, a tool that is used across different industries and disciplines.
AV: What prompted the impetus for having an on premise computational lab versus relying on cloud services?
EK: We came to the realization that many of the bright ideas and innovations that come from the industry require significant data-processing and understanding. We also saw that it is extremely rare to find an entrepreneur that is both knowledgeable in the industry and in data sciences. We wanted to bridge this gap by using experts in ML, data and AI that can augment solutions with real-life data and evidence. Compounded by the fact that good AI engineers are expensive and hard to come by – we build these on-premises skills and are providing them to startups in a very professional, quick and cost-effective manner.
Eitan Kyiet is the CEO of Road2 Ventures, an early-stage venture fund / innovation center based in Haifa Israel. Road2 offers a combination of investment funding, knowledge from its affiliates, and industry partners to help position Israeli tech companies for success and is a combination of a venture capital fund, accelerator, and innovation lab. Road2 is an ecosystem for entrepreneurs, industry leaders, and investors that develops startups into inspiring business through networking, funding, and technology. Eitan has been in the innovation and venture space for decades and is a veteran of the Israeli startup ecosystem.
AV: Thanks for taking the time to speak with me! It has been great to learn about the startup ecosystem in Israel, can you explain a bit what about what makes Israel a Startup Hub? And Why Haifa?
EK: Israel is known to be a Technology Hub due to the concentration of companies, academic graduates, and the history of startup formation in this country. While most people associate Israeli startup scene with Tel Aviv, we chose Haifa for a few reasons. There are numerous articles and books that try to explain the miracle of the Israeli ecosystem innovation. Many theories were brought up, and they probably all have merit in explaining this. My humble take on the success is a combination of an inherent disrespect for authority in Israeli culture and a constant thought that “we can do better”. Combine that with our very dynamic society and responsibilities imposed on all of us at a young age in the Israeli military – where we are constantly asked to do more with less – creates an incentive for creative risk-taking.
Haifa stands out in that it was, in essence, the birthplace of the Israeli hi-tech scene, that initially grew out of military innovation (Haifa hosts some of Israel’s most prominent defense companies). As Haifa is also a heavy industry hub, there are many opportunities in the field of smart industry. Historically, another classic spin-off from military technologies went into the med-tech space and many of the multinationals located in Haifa are results of M&A’s conducted over the years.Haifa is home to 80 international companies, 185k academic graduates, 9 medical and research institutions, 600 factories / industrial facilities, and 5 major ports. Haifa is the heart of Israel’s industrial northwest, and also home to a large portion of the Israeli Arab population. Haifa’s unique diversity includes successful international brands, a strong infrastructure, and startup-minded attitude, and access to top talent. Haifa is home to the first and largest high-tech park to be established in Israel, to this day. Google, Amazon, Philips, Intel, and many others have chosen Haifa as their R&D centers. A significant portion of Israel’s heavy industry and major international seaports, world-renowned academic institutions, research centers and Nobel laureates, it provides a unique environment to fund innovative businesses. We want to empower Israeli startups from all backgrounds including minorities and those who might not be from a fancy institution and hope to positively impact the Israeli economy through the economic empowerment of founders from all backgrounds.
AV: Can you tell us a little bit about your background?
EK: I have worn many hats, but have been around the venture / innovation space for many years. I serve as the CEO of Road2, an innovative value-added hub with AI-supercomputer abilities. Previously I held senior management positions in publicly traded companies such as Vice President of Business Development at Kamada (NASDAQ:KMDA), Chief Operating Officer at PolyPid (NASDAQ:PYPD), senior operations and business planning position in Biosense Webster (a Johnson and Johnson Company) as well as several business development and strategic alliance positions with Lumenis (NASDAQ: LUMI).
I started his career as a commercial lawyer where he gained over 13 years experience as a legal practitioner specializing in the hi-tech and medical device arenas in international transactions, venture, capital funds, investments, corporate law, and mergers and acquisitions both as a partner in a major law firm and as legal counsel to Elbit Ltd. (NASDAQ: ELBTF).
In parallel to my business activities, for the past 15 years, I have led Friendly Angels Club, an angel investment group that boasts several IPOs, M&A and significant venture capital up-rounds.
I hold an L.L.B. degree from Haifa University and a master’s degree in Business Management from Haifa University Graduate School of Business.
AV: Very cool, and from my understanding, Road2 is a bit different from a normal early stage VC fund, could you expand a bit on how Road2 is structured / its mandate for investing?
EK: In line with the risk-taking atmosphere we are trying to promote in our Haifa-based ecosystem, we try to look outside the box on several levels: We try to tune into the needs, wants and wishes of entrepreneurs that are not the classical “fruit of the loom” Technion or Israeli military tech graduates, and as a result have a relatively large number of female entrepreneurs and entrepreneurs from the Arab population. We try to de-risk our investments by leveraging funds we receive from the Israeli Innovation Authority to provide early-state startups with significant help on AI (we have a super-computer on premises, and an eco-system of AI service providers), and to tune tech solutions with real industry problems. This is why we connect large corporates to startups in beta-sites and design partnerships. As we jump on board at an early stage, we strive to participate in the startups’ success on an equity-investment basis.
AV: What are the main verticals / horizontals that Road2 Looks at?
EK: Our main verticals that Road2 seeks to invest in include 3E Sustainable energy, the AI lab, DigitalHealth, Gaming, and Industry 4.0. What we call 3E is Environment, Energy, and Sustainable economy. The AI lab helps our portfolio companies foster their models and take them to the next level. Digital health will revolutionize healthcare as digital technology is applied to the industry. Our gaming program partners with Unity and the Tiltan School for Design to help promote the design and development of games. Industry 4.0 refers to the rapid changes from automation, and interconnectivity in industry. Within all of these verticals, we view AI as a horizontal, a tool that is used across different industries and disciplines.
AV: What prompted the impetus for having an on premise computational lab versus relying on cloud services?
EK: We came to the realization that many of the bright ideas and innovations that come from the industry require significant data-processing and understanding. We also saw that it is extremely rare to find an entrepreneur that is both knowledgeable in the industry and in data sciences. We wanted to bridge this gap by using experts in ML, data and AI that can augment solutions with real-life data and evidence. Compounded by the fact that good AI engineers are expensive and hard to come by – we build these on-premises skills and are providing them to startups in a very professional, quick and cost-effective manner.