Erel Margalit

Returning to Israel in 1990, Margalit began to work at the Jerusalem Development Authority under Uzi Wexler, promoting business development and technological entrepreneurship in Jerusalem. During this time, he worked closely with Teddy Kollek.[9] He also worked in cooperation with American governors, among them Mario Cuomo of New York, Pete Wilson of California, James Florio of New Jersey and Rodney Wallace of Massachusetts. Margalit helped to attract dozens of technology companies to Jerusalem with the aim of turning the city into a high-tech capital for Israel. In three years, he succeeded in bringing in 70 large technology companies, including Digital and IBM. In June 1994, Margalit left the JDA and embarked on an independent career.[10]

JVP Media Quarter in Jerusalem

In 1993, Erel Margalit founded the JVP venture capital fund. He created a model that integrated an active management approach with a strategy of forming an international market. Under his leadership, JVP has been instrumental in building dozens of high-tech startups into global corporations operating in Israel, the United States, Europe and Asia. Under his leadership, the JVP Fund currently runs investments of approximately $1.4 billion across eight funds, spanning all stages of venture capital, and has orchestrated some of the largest exits out of Israel. These include the $4.8 billion sale of Chromatis to Lucent Technologies, the listing and sale of Netro for $5.5 billion, the NASDAQ listing and ultimate sale of Cogent Communications (NASDAQ: CCOI, current value $2.7 billion), the listing and exit of QlikTech for $2.6 billion (NASDAQ: QLIK) and the listing of CyberArk for $2.5 billion (NASDAQ: CYBR). With over 130 investments, 12 public offerings on NASDAQ and numerous industry sales.[11] In October 2018, the New York City Economic Development Corporation (NYCEDC) named JVP among its partners on a new cybersecurity initiative, alongside academic institutions including New York University (NYU) and Columbia University. Called Cyber NYC, JVP will operate the initiative's investment arm, Hub.NYC, which will focus on growth-stage startups and will also offer access to clients and business support.[12]

• Nanit – Board Member
• ControlUp – Board Member
• Earnix – Board Member
• Anyclip- Co-founder & Chairman 2018; Initial investment was in early 2007
• CyberArk (NASDAQ: CYBR) - Chairman – Initial investment 2002, $540M IPO in 2014, sold position for $1.7B between 2014-2016
• QlikTech (NASDAQ:QLIK)- Board Member – Initial investment in 2004, $770M IPO in 2010, sold position in 2012 for $2.5B
• Chromatis- Board Member – Initial investment 1998, Sold to Lucent in 2000 for $4.9B
• Netro- Investor – Initial Investment 1994, $351M IPO in 1999, sold position for $5.5B
• Cogent Communications (NASDAQ: CCOI)- Board Member – Initial investment 2000, $260M IPO in 2007, valued today at $2B
• Cyoptics- Chairman – Initial investment 1999, Sold to Avago in 2013, $440M
• Precise- Board Member – Initial investment 1996, IPO 2000 sold position for $770M
• Scorpio- Investor – Initial investment 1995, Sold to US Robotics in 1996
• Fundtech- Investor – Initial investment 1995, IPO March 1998
• Paradigm Geophysical- board member – Initial investment in 1995, IPO 1998

In 2006, Erel Margalit formed and developed the new Media Quarter in and around the historical train station compound in Jerusalem. With over 200 dynamic entrepreneurs in the Business, Social and Cultural enterprises, the JVP Media Quarter houses start-ups, VC fund JVP, early stage initiative- JVP Play, Our Crowd incubator- Labs/02, the performing arts hub – "Zappa Jerusalem in The Lab," the social profit organization – “In the Community” (Bakehila), as well as a restaurant and a nightclub.[12]

In 2002, Marglit founded the social organization Bakehila (בקהילה "In the Community" in Hebrew) as a means of reducing the socio-economic gap affecting disadvantaged children in Jerusalem. Bakehila runs educational programs in lower socioeconomic neighborhoods of Jerusalem with the goal of raising the students' academic achievements, and promoting the children's personal and interpersonal growth. Thousands of students from Jerusalem have attended the program during its first eight years.[13] In 2012, Bakehila opened an educational enrichment center in the Arab neighborhood of Beit Safafa. In 2018, Bakehila began working in underprivileged neighborhoods in Kiryat Shmona.[14]

Following the events of the Second Intifada and the massive departure of young artists from Jerusalem, Erel Margalit created The Lab (Hama'abada) to keep and attract young artists in Israel's capital. The Lab provides support and assistance to these artists, providing venues for young Israelis to create, perform, and receive feedback on their work.[13] Today, The Lab is the Jerusalem music club and restaurant, Zappa.

During the 2005 election campaign, Margalit was one of the first businessmen to support Amir Peretz in the general elections. He joined the Labor Party and expressed his support of Peretz's social agenda. Margalit promoted his vision of economic growth whereby the ultra-Orthodox and Arab populations would be integrated in the labor market in Israel, thus taking them out of poverty and alleviating pressure on the middle classes. In addition, Margalit presented a plan for bringing the communities of Israel's geographic periphery closer to the center of the country, both economically and socially.[15]

Since his initial support of the Labor Party, Margalit grew disillusioned with the direction of the party and its leadership. On January 17, 2011, the Chairman of the Labor Party, Ehud Barak, announced his resignation from the Labor Party and the establishment of a new party – "Atzmaut" (Independence Party).[16] Two days after this announcement Margalit helped to found the "Avoda Now" movement together with prominent members of Israel's business, technology, and cultural community, calling for a revival of the Labor Party. The movement launched a public campaign calling the people to join the Labor party lines; with the aim of renewing its institutions, restoring its social values, and choosing a new, dynamic leadership.[17]

On April 27, 2011, saying he could "no longer watch from the sidelines as the political situation in Israel deteriorates", Margalit announced his intention to run for the chairmanship of Israel's Labor Party.[18]

On 5 February 2013 Margalit became a Member of the Israeli Knesset[19] and currently serves as a member of the prestigious Finance Committee and the Science and Technology Committee. He has been called the richest member of the Knesset.[20] Margalit was especially active in the 2013 budget discussions criticizing its lack of economic growth engines (See Video on YouTube), and called to cancel the bi-yearly budget.[21] He also led the Opposition on the discussions of the "HARIKUZIUT" bill, aimed to target the over-concentration and centralization in the Israeli economy.[22][23] Margalit chairs the Parliamentary Task Forces for Economic Development in the North and the Negev,[24] Civilian Cyber Protection and Combating Living Costs in Israel, and co-chairs the Parliamentary Task Force for Small and Medium Businesses, Integrating the Ultra-Orthodox in the High-Tech Sector, Employment for the Arab-Israeli Sector, 40+ Employment Video on YouTube, and the Task Force for the City of Jerusalem where he often criticizes the Israeli Government's policy of worrying about Jerusalem's borders but ignoring its content and neglecting its poor economic status.[25]

In the 2013 Labor Party leadership election Margalit announced his support for the candidacy of MK Isaac Herzog for chairman.[26][27] Margalit was re-elected to the Knesset in the 2015 elections. In 2017 he contested the Labor Party leadership election, but was knocked out in the first round of voting. He subsequently resigned from the Knesset in October 2017 and was replaced by Leah Fadida.[28]