Key Takeaways
- • Ben-Gurion University's Cactus Capital student venture fund has deployed real capital to support 35 startups, with 14 receiving follow-on investment, demonstrating a functional model for undergraduate venture investing with measurable outcomes.
- • Approximately 200 student ventures apply annually to Cactus Capital, indicating significant entrepreneurial activity within BGU's ecosystem and growing institutional recognition of the program's credibility within Israel's innovation sector.
- • The fund operates under the leadership of Prof. Carmel Sofer and is housed within Yazamut 360, BGU's entrepreneurship center, positioning undergraduate investors as decision-makers on real capital allocation rather than in simulated environments.
- • Program alumni, including former CEO Adi Azulay-Eliram and founding CEO Roy Kimchi (now at Square Peg), attribute the fund's effectiveness to identifying students with entrepreneurial aptitude rather than requiring pre-existing venture capital expertise, emphasizing experiential learning over technical preparation.
- • The model emphasizes early-stage responsibility and leadership development, with participants gaining institutional access and decision-making authority typically reserved for post-graduate professionals, creating a pipeline of operationally experienced investors.
Summary
Ben-Gurion University of the Negev has established an unconventional venture capital structure through Cactus Capital, a student-managed fund operating within Yazamut 360, the university's entrepreneurship center. The program grants undergraduate students, many in their early twenties, direct responsibility for deploying real venture capital rather than managing simulated portfolios or theoretical exercises. This hands-on model has proven operationally viable: the fund has capitalized 35 startups to date, with 14 subsequently securing follow-on investment rounds—metrics that validate both the quality of student decision-making and the fund's position within Israel's innovation ecosystem.
The scale of interest demonstrates robust market validation. Approximately 200 student ventures apply for funding annually, reflecting both concentrated entrepreneurial activity at BGU and rising recognition of Cactus Capital's influence among founders seeking early-stage capital. The fund is chaired by Prof. Carmel Sofer, an experienced investor who provides institutional oversight while preserving the student-led investment process.
Program leadership attributes the fund's effectiveness to a counterintuitive principle: incoming students were not required to possess venture capital expertise. Adi Azulay-Eliram, a former CEO of Cactus who now operates in AI entrepreneurship and strategic initiatives, stated that "none of us really knew venture capital when we entered. What mattered was finding students with a spark." This approach prioritizes pattern recognition, entrepreneurial instinct, and decision-making capacity over technical finance preparation. Roy Kimchi, Cactus Capital's founding CEO who is now an investor at Square Peg, describes his own entry into the role as "almost accidental," yet he transitioned into professional venture capital post-graduation, suggesting the fund functions as a legitimate talent pipeline.
The program's stated objectives extend beyond financial returns. Fund architects emphasize trust, opportunity, and early leadership development as core outcomes—permitting students to operate within institutional contexts and assume responsibilities typically unavailable until after graduation. This model positions Cactus Capital as both an investment vehicle and an education platform, creating differentiated value in emerging manager recruitment and founder-investor networks within the Israeli startup ecosystem.
The scale of interest demonstrates robust market validation. Approximately 200 student ventures apply for funding annually, reflecting both concentrated entrepreneurial activity at BGU and rising recognition of Cactus Capital's influence among founders seeking early-stage capital. The fund is chaired by Prof. Carmel Sofer, an experienced investor who provides institutional oversight while preserving the student-led investment process.
Program leadership attributes the fund's effectiveness to a counterintuitive principle: incoming students were not required to possess venture capital expertise. Adi Azulay-Eliram, a former CEO of Cactus who now operates in AI entrepreneurship and strategic initiatives, stated that "none of us really knew venture capital when we entered. What mattered was finding students with a spark." This approach prioritizes pattern recognition, entrepreneurial instinct, and decision-making capacity over technical finance preparation. Roy Kimchi, Cactus Capital's founding CEO who is now an investor at Square Peg, describes his own entry into the role as "almost accidental," yet he transitioned into professional venture capital post-graduation, suggesting the fund functions as a legitimate talent pipeline.
The program's stated objectives extend beyond financial returns. Fund architects emphasize trust, opportunity, and early leadership development as core outcomes—permitting students to operate within institutional contexts and assume responsibilities typically unavailable until after graduation. This model positions Cactus Capital as both an investment vehicle and an education platform, creating differentiated value in emerging manager recruitment and founder-investor networks within the Israeli startup ecosystem.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.