Venture capitalists reeling from their millions in losses in the dot-com bust must be bursting with envy at the thought of BRM Group, an Israeli venture firm.

In 1993, BRM had the luck to run into Marius Nacht, founder of Checkpoint, the phenomenally successful Israeli internet security firm, when he was desperate for money. Unlike those later internet entrepreneurs who raised megabucks with a one-page business plan, Nacht had a tough time finding a backer for his software startup. BRM was able to squeeze 50% of Checkpoint's equity out of him in return for a $300,000 loan, which was subsequently repaid.