More than 200 kibbutzim are joining forces to support and secure funding for early-stage startups in Israel’s war-hit north and south.

The Kibbutz Movement has established an investors’ club called Eretz Angels, together with the Kinneret Innovation Center – a tech-hub for agriculture, water and sustainability – and HaShomer HaChadash, which protects farms in Israel.

Eretz Angels will pair up deep-tech startups with angel investors – speculators willing to invest in a startup in exchange for equity in the fledgling business.

High-tech startups, which drive Israel’s economy and exports, have been badly hit by the economic downturn globally and the ongoing war in Gaza.

Those headquartered in the northern and southern peripheries have suffered even more than those in the more economically active center.

Eretz Angels, funded by 2.7 million shekels ($1.3 million) over three years by the Israel Innovation Authority, aims to throw them a lifeline.

It will rigorously screen startups in need of funding, then make recommendations to potential investors, based on a pool of expertise from across the kibbutzim.

The Kibbutz Movement represents a significant majority of the country’s kibbutzim – originally agricultural communities, now largely in manufacturing, with more than 270 factories among them.

Those kibbutzim will serve as strategic investors and design partners, giving a green light to startups they choose to serve as pilot sites for investment.

Their particular interest is in supporting startups in agricultural value chains, water, energy, health, biotechnology, recycling, alternative materials, smart manufacturing (also known as Industry 4.0) and other technologies that have a genuine potential to impact the world.

“Our vision is to connect angel investors worldwide to Israeli early-stage impact startups. Our strength lies in our partners, who represent Israel’s manufacturing industry and food value chain (farms, packing houses, production, storage, retail) which are looking to trial, adopt and invest in innovation,” the club explained in a LinkedIn post.

Eretz Angels is managed by CEO Nir Belzer, a venture capital veteran, who will raise funds from club members as well as a broad network of seed and pre-seed investors in Israel and abroad.

In a press release, Eretz Angels announced: “The club will scout investment opportunities, and present them to its angel members for investment, collaborations, strategic partnerships, pilots, and beta sites, whether through direct investments or establishing SPVs [special purpose vehicles, effectively a company within a company].

“The investors’ club will work to promote initiatives from affected regions, leveraging its members as leading investors, connectors, and mentors to portfolio companies.”

Eretz Angels was jointly founded by the Kamea Fund of the Kibbutz Movement, the Kibbutz Industry Association, the Mashbir Hamerkazi (the main wholesale supplier for consumers’ cooperatives and labor settlements in Israel), Eretz-Noshevet (Settled Land, the investment arm of HaShomer HaChadash), and the Kinneret Innovation Center.