The greatest risk is not taking one

Founded Ventures

Alex has recorded a fair number of successes in his long-running journey as an entrepreneur and some of these ventures are discussed below.

Founded Ventures

Company Description Exit Founded
Governing Dynamics An Israeli-American venture fund specializing in scaling up Israeli startups in the US. Active 2005
GroundLink (formerly LimoRes) A leading SaaS technology provider that aggregates, manages and executes ground travel services. Its marketplace provides access to 45,000 ground travel vendors in 172 countries - the largest network of its kind.

Its state-of-the-art technology enables retail customers, web publishers, corporations and travel agencies to easily find, price, book and pay for any ground travel.

Groundlink received early-stage funding from The Comvest Group. It currently employs 200 employees and reports more than $50 million in revenues.
Sold 2005
Transit Wireless (TW) exclusive provider of LTE, WiFi and other cellular phone coverage and wireless services to the 8.5 million daily commuters in the NYC subway system.

As a neutral host, Transit Wireless operates the service on behalf of AT&T, T-Mobile, Verizon and Sprint.
Active 2003
Elematics The first virtualization software company to create the technology necessary to allow for real-time provisioning and network management in a multi-carrier, multi-vendor environment. Elematics raised $23 million from Warburg Pincus.

Alex served as the company’s Executive Chairman and Technology Architect until its sale in 2004.
5x (2004) 2001
Comgates The world leader in media gateways and soft-switch technology, this company was spun-off of Arbinet in 1998.

It went on to raise $13m in capital until it was sold to Telco in 2004.
2x (2004) 1997
Arbinet - TheXchange This is the world's largest electronic marketplace for communications trading. It raised over $240m and had over 130 employees and 1000 carriers who conducted over $500m in transactions via its platform. 10x (2010) 1995

Failed Ventures

As a maverick investor and entrepreneur, Alex has recorded many failures along with his successes, gleaning more valuable lessons from the former. Alex assesses that there are many reasons that appropriated his failures, many an underestimation of the time and money needed to implement the projects, as well as the level of commitment and abilities of the companies’ management.

According to him, the hardest part thing with losses is learning to when to cut them off and admit to mistakes. It all came full circle when the sage advice, "A focused mind is one of the most powerful forces in the universe" came to Alex through a fortune cookie while at a local eatery in Manhattan. He realized that some of his lessons took 20 years to learn.

As the recession hit, Alex’s decision to leverage two of his ventures with debt turned disastrous as his lenders refused to be patient. He lost all his equity in one of the ventures as the other got refinanced.

His takeaway from that event was to never put debt into early stage growth companies.
Alex had a good intuition prior to the housing market collapse and finally decided to bet against it by shorting the home builders. He lost money in all of 2006 as the housing market continued to do well at that time, and eventually he decided to cut his losses early in 2007.

He then went to watch home builders lose over 70% of their value in the following twelve months. He had failed to make the connection between the home builders’ collapse to the collapse of the banking and financial system which followed.

The lesson he learnt was to stick to his guts, especially when one has a track record of being right.
Alex knew there was going to be a better way to publish new information on the internet so he wrote a patent for publishing information in real-time to a list of followers.

At the same time, he had also started working on GroundLink and had to make a choice between the two ventures. He chose GroundLink while the other idea turned into what came to be known as Twitter.
Novacure Alex had the opportunity to invest in this revolutionary cancer treatment process but decided it was too revolutionary. 2004
Skype Alex had received a call from a VC asking about his opinion on a small startup doing a VOIP product. Since he knew the space too well, he decided the prospects for the firm were not good and passed on it. 2002
ICG Alex was the seed investor in Arbinet at the time and he received an invitation to purchase pre-IPO equity for ICG. However, he wired the money too late to participate and ICG stock subsequently soared from $7 to $212 in six months. 1999
Google Alex was introduced to Sergey Brin by Ester Dyson, and after listening to his presentation of ‘how a link-based algorithm could provide better search results,’ he regrettably said, "Who needs another search engine? We have AltaVista!" 1998
Tradeum Alex was contracted to buy software at this firm. He even went on to negotiate the equity upside and co-investment possibilities but he switched his mind at the last minute and the firm went on to be sold for $1.2 billion the next year. 1998
ICQ Yosi Vardi offered Alex equity in his company as barter for bandwidth from Arbinet but he declined the exchange and ICQ went on to sell to AOL for $450 million a mere eight months later. 1996
Vocaltech Alex had the opportunity to invest in the company twice before their IPO but passed on the opportunity both times. 1996