The father and daughter team behind internet incubator Oxygen are planning a flotation of an investment vehicle focused on the burgeoning Israeli hi-tech sector.

Michael Edelson and his 26-year-old daughter Emma hope Tel Aviv-based tecc-IS will attract an initial valuation of around £10m following a £5m fundraising on AIM.

Mr Edelson, dubbed "Shellmeister" in the City after developing a speciality in bringing private companies on to the stock market, was the driving force behind high-profile flotations including Knutsford, Magic Moments and Poptones, the recently listed record company.

He has attracted a wide following among retail investors, sending the share price of companies such as Knutsford and Oxygen soaring.

However, some investors have criticised him after finding that the shares they bought at the height of the frenzy have later fallen in price, leaving them nursing paper losses.

Ms Edelson is a former employee of Mark McCormack's IMG sports marketing group and a director of Oxygen.

Tecc-IS, chaired by Joseph Riback, aims to give UK investors exposure to early stage Israeli technology companies that have not yet attracted the attention of major venture capital groups. Government support has turned the Israeli hi-tech sector into one of the most influential in the world.

"It is in my view potentially the Silicon Valley of a larger Europe," Mr Riback said.

Investment decisions will be taken by tecc-IS's board and a six strong advisory panel of Israeli and European technology experts. Their first move will be to spend £500,000 on a 30% stake in Smashing Concepts, a fledgling artificial intelligence firm.

Oxygen will take a 10% stake in tecc-IS. Netvest.com will hold 4% and its chairman ,Andrew Balcombe, will sit on the tecc-IS board. Insinger Townsley is broker to the float.