The firm, founded in 1995 by Joseph Ciechanover and Edgar Bronfman Sr., managed two funds that invested in 77 portfolio companies across various industries. They achieved multiple successful exits, including sales to Sigma Designs, Microsoft, and Motorola, as well as IPOs of D-Pharm, Voltaire, and Proteologics. In addition to investments, the funds provided open innovation scouting services to help multinational corporations identify external sources of innovation and investment opportunities. The Challenge Funds were important sources of capital for alternative investments in Israel.