A multimillion-dollar project in Jerusalem is designed to turn Israel into a major force in the animation and gaming field.
February 28, 2006

Jerusalem Venture Partners (JVP) debuted Israel’s first-ever media center on Tuesday, along with a multimillion-dollar animation studio, in an effort to turn Jerusalem into a major player in the animation and gaming field.

The startup, Jerusalem Animation Lab, will include an animation and gaming studio, as well as a development lab to create animation for cellular phones.

“Israelis have proven themselves as leaders in technology, and now is the chance to prove they can also be a major force in the content field,” said Erel Margalit, managing partner of JVP, a leading Israeli venture fund.

The media center will bring together professionals from the fields of content, technology, and art to develop animation products to meet a rapidly growing demand, he added.

JVP has brought in top-notch Hollywood names to run the new project. Max Howard, a former DreamWorks SKG producer; and Douglas Wood, an industry executive who has developed television series and feature films for Steven Spielberg’s Amblin Entertainment; Universal Studios; Warner Bros.; and Turner Pictures, will be in charge of operations.

In addition, dozens of Israelis working abroad, as well as local talent, have been recruited for the studio, which is expected to be one of the largest outside the United States.

“Our aim is to utilize the creative talent available here and combine it with Israel’s well-known expertise in technology,” said Mr. Margalit. He noted that animation is entering new fields such as mobile devices, the Internet, and even street signs.

Israel isn’t the only country building a presence in the growing computer animation market. India has also been growing its animation business dramatically (see Growing India Animation and India Animation to Reach $950M).

Funding Jerusalem Media

JVP’s digital media initiative began in 2003. The Jerusalem-based fund is one of Israel’s largest and most successful. JVP formed a network of industry experts and advisors from the content, gaming, wireless, and consumer electronics sectors.

The firm operates a separate entity, JVP Studio, to create and fund early-stage media companies. The fund has already invested in 12 startups in the content field.

Among the most successful so far is Double Fusion. The Jerusalem-based startup enables game developers to integrate video and rich media advertising into video games. Several foreign venture firms have also invested in some of JVP’s media startups.