Global Corporate Venturing Rising Stars Awards 2018: #22 Merav Rotem Naaman

While it is hard to imagine US-based cable group Verizon paid $4.4bn in its acquisition of internet pioneer AOL (and merge it with its existing email subsidiary Yahoo to form Oath) to get its hands on its Israel corporate venturing unit it has been a positive form of “acqui-hire” for John Doherty, head of Verizon Ventures (VZV) and a member of the GCV Powerlist 2017.

Doherty nominated Merav Rotem Naaman for the GCV Rising Stars 2018 not long after she had formally given up the managing director of Nautilus, AOL’s venture investments unit in Israel, title in June after the parent’s takeover had closed.

Rotem Naaman said: “We were incorporated after the acquisition but not as part of the acquisition… meaning it was not a necessity, as AOL/Yahoo was pretty much kept separate for the most part. 

“It was more of a strategic decision made by VZ as both John Doherty and myself were aligned in the thinking that there is an incredible value to be made for VZ if it becomes a more active investor in Israel. And to do that I absolutely need a team on the ground.”

Now managing director at Verizon Ventures Israel, Rotem Naaman, whose colleagues at Nautilus, Roni Burrell, Anat Tamir and Gal Ringel, also moved over to VZV, said: “I am still the head of Nautilus for anything related to existing investments. We do not make new investment out of that fund but we still have nine active companies in our portfolio, and I am a board observer in a few of them.

“We been engaged with the Verizon Ventures team for a while post the acquisition but officially announced joining the team with the investment of Iguazio in May 2017.”

Israel-based data management technology provider Iguazio raised $33m in series B funding in July with Rotem Naaman joining its board as an observer.

Last year saw Rotem Naaman’s team also back Optibus, alongside four other deals which Verizon has yet to discuss externally.

Israel-based public transport service Optibus raised $12m in November’s series A round, including Verizon Ventures, VC firm Pitango and storied venture capitalist Sir Ronald Cohen.

In total at AOL, Rotem Naaman “invested and mentored 11 early-stage Israeli companies, including Veed.me, Soundbetter, Zirra, Splitty Travel, Numeri, Shoppimon and ClipCall” and is board observer at Zirra, ClipCall and Shoppimon.

That time at AOL is a source of pride for Rotem Naaman, who said: “While I have worked with some amazing people and projects over the years, I am most proud of my leadership role on the founding team that created and established AOL Nautilus and its unique investment model in 2014. In a very short period of time, we were able to invest in 11 of the hottest early stage companies in Israel, including Soundbetter, the world’s number one music creation marketplace, while attracting interest and support from AOL business units.

“Finally, I pride myself on being both an effective company and team builder, as well as an experienced and attentive investor. What’s more, my role at Verizon Ventures Israel allows me to continue to operate as entrepreneur and innovator, a passion I am happy to pursue.”

With Verizon’s entry into a new marketplace, there are inevitable teething problems.

Rotem Naaman said: “External and internal brand awareness are the biggest challenges I face today. While Verizon is a household name is the US, Verizon Ventures is still relatively new in Israel, and some entrepreneurs and startup executives are not yet aware that we are operating here. What’s more, many of the ones that are aware of us being in the market, do not necessarily have a full understanding of Verizon’s reach in the business world, our interests as investors, and the profound value we can bring to their companies across many different vertical sectors.”

Realising that ambition is trickier said than done, but Rotem Naaman said at Verizon, they are well on their way to doing it by inputting best practices.

“CVC groups are quickly becoming a critical differentiator for many companies who are looking to gain an edge or stay ahead in today’s fast moving global economy.

“One of the best ways for early-stage companies to grow their business is by partnering corporate venture firms who bring not only money, but market validation and services such as business development and global market access into the investment mix.

“This is the best way to bring value to both parties, which is especially important for emerging companies in Israel targeting the global marketplace, since the Israeli market itself is small. I have seen this strategy work time and time again, starting with my time at AOL and now at Verizon Ventures.”

But it remains a challenging profession for many. She added: “While many CVCs have been experiencing strong growth and are becoming important contributors to corporate performance over the last few years, it is critical that CVCs work to shorten internal investment processes.

“Not only would quickening internal processes speed up the pace of innovation, but it would go a long way to improve our reputations among traditional venture capitalist investors and entrepreneurs.”

But speeding up processes and trying new things can bring risk, something Rotem Naaman said should be embraced: “There are many reasons why Israel has become ‘the Startup Nation’ – a small country that is virtually an island, where the vast majority of the population are recent immigrants, where 18-year-old kids have to serve in the military and take on responsibilities that for most people take decades.

“I grew up in this environment idolising my parents, grandparents and the other pioneers who lost everything in the World Wars and came to Israel to rebuild their lives and a new home.

“Asking questions and trying and failing were the norms; entrepreneurship was everywhere and in everything. And in me.

“From a very early age I was determined to create my own path, to define my own destiny and to take advantage of the opportunities that life presented, which were not necessarily part of what being raised as a female in a small orthodox community expected of me.

“So I left my community, first to serve in the military and then to attend university where I studied law. During my studies I took a year off to hike across South America and came back smarter, stronger, more open minded and with the courage to take big risks.

“I have brought this to my career where I challenged myself to take on the tough jobs and make big moves, from leaving a successful legal career in Israel to attend Harvard Business School, to starting Nautilus, AOL’s investment arm in Israel, and now leading Verizon Ventures’ first investment group that’s located outside of the US.

“My success is also rooted in the people that I surround myself with both at work and in my personal life. Good teams, happy teams, diverse teams along with my vibrant family and friends are the fuel that keeps me going.”

Prior to Harvard, Rotem Naaman spent six years in the legal and regulatory department at Cellcom, “Israel’s largest cellular company”. She “also worked as a management consultant for Bain & Company in San Francisco, California after graduating from Harvard Business School in 2005”, before working for Better Place from 2008 to 2013. There she worked in global operations and global strategy, working her way up to head of strategy and operations for a global team.