KamaTech, an accelerator for ultra-Orthodox start-ups in Israel, and the Israeli investment network iAngels, launched the first VC fund exclusively for Haredi entrepreneurs in Tel Aviv on Wednesday. In the next three years, the fund, called 12 Angels, will invest some $5 million in about 30 companies focusing on education technology, e-commerce, artificial intelligence, cybersecurity and fintech.

The initiative will help entrepreneurs establish their businesses in the rapidly growing ultra-Orthodox start-up scene, said KamaTech co-founder and CEO Moshe Friedman.

“For the first time, investors – not philanthropists – are putting their faith in the talent and commitment of Haredi entrepreneurs,” Friedman said.

KamaTech was established in 2013 as an accelerator for Haredi entrepreneurs. The organization helps members of the community who have a good business idea but few technical or business skills. Benefits for those who participate include personal mentors from leading entrepreneurs in the Israeli high-tech industry, help from law and CPA firms on copyright, financing and other issues, a free project development team, and assistance in hiring, financing and presentations.

iAngels, one of Israel’s leading investment networks, was established three years ago, and now employs 20 professionals. It has raised $50 million and invested in over 60 start-ups, according to Mor Assia, who founded iAngels with Shelly Hod Moyal.

iAngels and KamaTech began talking about working together several months ago, Assia said.

This article originally appeared in the Times of Israel.


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