Australian Venture Capitalists Turn to Israeli Climate, Energy and Agritech Sectors

One potential obstacle is the political climate in Australia, where local Jews have reported feeling increasingly uncomfortable.

By Shula Rosen

Australian investors are being encouraged to look beyond Israel’s better-known cyber and defense industries, with climate technology, energy transition and agritech emerging as possible areas for greater cooperation between the two countries.

Helping make that connection is Next76, a venture created two years ago by Bandera Capital and Foxglove Capital specifically to invest in Israeli companies.

Its backers see Australian demand in areas where Israeli companies are developing technology, particularly energy, food and agriculture.

“Agritech has a big role in biofuels and the emerging low-carbon liquid fuel sector,” David Solsky, an operating partner at Bandera, told The Jerusalem Post. “I think those kinds of companies would be interesting for Australians to explore.”

On November 19, Israeli companies will have an opportunity to test that interest at the first-ever Jerusalem Post Australia Summit in Sydney, where businesses and investors will meet to explore potential partnerships.

Behind Next76 is also a desire to support Israel through investment. Following October 7, Australian Jews responded through philanthropy, rebuilding projects and advocacy, while Solsky and his partners began considering how their own professional experience could be put to use.

“We started to look at how we could ultimately invest in Israel, and we think climate and energy transition are particularly relevant verticals,” Solsky said.

Israel’s ability to weather recent challenges has added to their confidence. “Despite the war and some of the challenges that Israelis face, the economy has continued to be strong,” he said.

One potential obstacle is the political climate in Australia, where local Jews have reported feeling increasingly uncomfortable, particularly following the Bondi Beach massacre.

Solsky said the hostility receiving attention does not represent the broader country, where many businesses and investors remain open to working with Israelis.

For Israeli companies, Australia could offer more than investment. Solsky sees it as a market in its own right and potentially a stepping-stone for businesses ultimately seeking to expand into the United States.