Erel Margalit (; born 1 January 1961) is an Israeli high-tech and social entrepreneur. He is the founder and Executive Chairman of the Jerusalem-based venture capital firm Jerusalem Venture Partners (JVP) and the founder of two non-profit organizations “Bakehila” and “Israel Initiative 2020” establishing seven regions of excellence that combine technology and education. He served as a member of the Knesset on behalf of the Labor Party, from election in January 2013 until resigning in October 2017. Under Margalit's leadership, JVP has raised over $1.4 billion across nine funds, spanning all stages of venture capital, and has orchestrated some of the largest exits out of Israel. Forbes international business magazine selected Margalit as the top-ranking non-American venture capitalist on its prestigious "Midas (The Golden Touch) List.” The Marker Magazine named him the best venture capitalist in Israel.
Early life
Erel Margalit was born in kibbutz Na'an, the eldest of three siblings. His father, Itzik Margalit, was an officer in the IDF Armored Corps and one of the founders of moshav Kfar Haim, and his mother, Mickey, was a founding member of moshav Avihayil. On his mother's side, he is descended from Jews who immigrated to what was then Ottoman Palestine from Bulgaria in the 19th century, prior to the beginning of the First Aliyah. He is a descendant of Shmuel Tagir, one of the founders of Tel Aviv.
In 1969, when Margalit was eight years old, the family was sent on a mission to Detroit, Michigan where his father was head of a local Hebrew school. While in high school in Michigan, Erel became a point-guard on a local basketball team. After returning to Israel in 1971, the family settled in Karmiel before moving to Jerusalem. He attended Rene Cassin High School and continued to play basketball there. Recognition of his talent led to an offer to join the Israeli youth team, but he declined in favor of serving in an IDF combat unit. He served in the Golani Brigade's "Orev" unit as an operations officer, reaching the rank of sergeant major. As a reservist in 1982, he fought in the First Lebanon War with the IDF's airborne anti-tank division.
Margalit studied philosophy and English literature at the Hebrew University of Jerusalem, where he met his future wife. In 1985 Margalit moved to New York to attend Columbia University where he continued towards a doctorate in philosophy and logic. During his studies he was exposed to Michael Porter's "The Competitive Advantage of Nations," which influenced his doctoral dissertation on the subject, "The Entrepreneur as a Leader in the Historical Process." which he completed in 2007.
In response to the First Intifada and the anti-Israel activities on American campuses, Margalit organized a dialogue group between Israeli and Arab students. Together with other Israeli doctoral students, among them Yossi Dahan and Yossi Bachar, he established groups on eight leading campuses.
Margalit is married to Debbie and has three daughters: Tair, Eden, and Maya.
Business career
Jerusalem Development Authority
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. 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.
Jerusalem Venture Partners (JVP)
In 1993, Erel Margalit founded the JVP venture capital fund. 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.