OurCrowd sued over alleged preferential unit conversion deal
Founders accused of breaching fiduciary obligations in investor dispute.
A lawsuit recently filed in the Cayman Islands District Court reveals a bitter legal dispute between the investment fund Alpha Capital Anstalt and the executives of the investment platform OurCrowd, in which it is an investor.
At the center of the lawsuit are allegations of breach of fiduciary duty and an attempt to “upgrade” partnership units at the expense of investors. In response, OurCrowd did not deny that Alpha is an investor in the platform, but said its claims are false.
Alpha Capital Anstalt, a Liechtenstein-based investment fund, filed an “Originating Summons” against OurCrowd General Partner Limited and two Israeli executives: founder and CEO Jon Medved (who has since stepped down from his CEO role due to illness and become chairman) and Steven Blumgart.
The plaintiff is known as an activist fund that frequently brings legal action against investment entities and small publicly traded companies. Since 2007, it has filed approximately 51 lawsuits.
According to the filing, the central dispute revolves around a process known as the “Founders’ Pull Up.” The plaintiff alleges that there was an attempt to convert 75% of Medved and Blumgart’s limited partnership units in OurCrowd International General Partner LP into higher-class units without payment.
The units, previously classified as “regular” and “Class A”, were allegedly converted into “C-4” units, which carry preferential rights. The lawsuit states that the move was justified by the founders’ unique contributions to the fund and the industry, but the plaintiff argues it constitutes a breach of fiduciary duty owed by the general partner.
The plaintiff is seeking multiple declarations and orders from the court, including a ruling that the general partner is not authorized to reclassify existing partnership units, that the partnership agreement cannot be amended to validate the move without Alpha Capital’s explicit consent, and that the transaction is ultra vires. It is also seeking monetary damages against Medved, Blumgart, and the general partner for wilful breach of the partnership agreement.
The filing was submitted on March 18, 2026, by the law firm Appleby (Cayman) Ltd.
In response, OurCrowd said: “OurCrowd is in the process of completing a financing round to enable continued significant growth of our investment platform. This financing event is being conducted as an internal round, led by key institutional investors who have supported OurCrowd over the past few years. A single dissenting limited partner has initiated legal proceedings against this round and its terms. We believe this claim has no basis and will defend ourselves vigorously in the Cayman Islands court. In light of this dispute, OurCrowd continues to operate as usual and will not slow down its activities in serving thousands of investors, managing dozens of funds, and supporting numerous portfolio companies.”
OurCrowd has raised and invested more than $2.3 billion in committed capital. The platform has approximately 240,000 accredited investors from 195 countries.
It has invested in more than 420 portfolio companies and manages around 50 specialized venture capital funds, including vehicles focused on AI, foodtech, medicine, and index strategies such as the OC50. To date, the company has recorded more than 60 exits, including well-known companies such as Beyond Meat, Lemonade, and Mobileye.
