Leading medical cannabis researcher, Israel, will be host to the world’s first government supported cannabis technology incubator.
OurCrowd, Perrigo and BOL have won the Israeli Government Tender for the operation of a hi-tech medical cannabis incubator in Yeruham. The new incubator (an organisation engaged in the business of fostering early-stage companies through the developmental) will develop technologies for the medical cannabis market.
OurCrowd, the leading global investment platform and the most active venture capital investor in Israel, Perrigo, the world’s largest non-prescription drug company, and BOL Pharma, the leading medical cannabis company in Israel and an OurCrowd portfolio company won the tender issued by the Israel Innovation Authority to operate CanNegev, a medical cannabis incubator, which will be located in Yeruham in the south of Israel.
The consortium said: “We are especially pleased to expand the borders of the Israeli eco-system to the other regions in the country with the opening a few months ago of the foodtech incubator in Kiryat Shemona and now the establishment of the medical cannabis incubator in Yeruham”.
Stimulating the local economy
The incubator is expected to create many new jobs and facilitate the creation of a new horizon in both employment and business opportunities for the residents of the region.
Tal Ohana, Mayor of Yeruham said: “CanNegev is positive news for Yeruham. We dreamt and are now realising the vision of turning Yeruham into a research, technology and production capital for medical cannabis.
“The incubator will serve as an anchor for innovators from around the world and will upgrade the activities of entrepreneurs, who are already in the process of allocation of land for the establishment of cannabis extraction plants in Yeruham.”
According to Jon Medved, founder and CEO of OurCrowd, the government and the consortium intend to transform the town of Yeruham into the cutting edge of the global medical cannabis.
He said: “We will find startups with breakthrough technologies, make seed, follow on investments and equip them with all the necessary tools for success in the international market.
“The member firms of the consortium have a wealth of knowledge and experience in the medical field and in medical cannabis, and this will be placed fully at the disposal of the innovators. It should be noted that Perrigo already operates a highly sophisticated manufacturing plant in Yeruham and its familiarity with the city and the region will also contribute to the success of the project.”
According to the terms of the tender, the consortium will operate the incubator for five years, with an option for an extension for a further three years.
The Innovation Authority and the member companies of the consortium will invest tens of millions of shekels in the coming years, with estimates putting the total amount at NIS ₪150m (~€38.98m) to be invested in the operation of the incubator, support of startup companies and follow on investments.
The plan calls for six startup companies with breakthrough technology in the medical cannabis field to be admitted into the incubator annually, for a total of 30 companies over the first five years of operation of the facility.