A large Israeli venture capital fund hoping to exploit business opportunities in nanotechnology has backed another fund with $8 million to seed other business ventures.

Prologue Technology Entrepreneurship said Monday it received $8 million from Herzliya, Israel-based Pitango Venture Capital, Israel’s largest venture firm.

The concept is a variation on the incubator idea. But instead of the traditional incubation model, where entrepreneurs are backed with money and infrastructure to prepare companies for initial funding, the idea at Prologue is to use the $8 million to back scientists and researchers who have developed innovative nanotechnologies, and to build businesses around their discoveries.

“We saw a need in certain areas that are below the radar screen for VCs,” said Nimrod Goor, a partner at Prologue, which has offices in San Mateo, California, and Tel Aviv. “There’s a lot going on in nanotechnology that is more in the hands of scientists and researchers, but not yet commercialized.”

Over the next two years, Prologue’s plan is to back six to 10 companies with up to $1 million in seed funding. Prologue will then have a stake in the ventures, and will also handle introducing the nascent companies to traditional venture capitalists.

In a telephone interview from his Herzliya office, Prologue partner Rafi Gidron said he considers a number of nanotech areas ripe for investment, including sensors, display devices, alternative energy, nano-electricity generators, and enabling equipment for making nano devices.

“In this area of nanotechnology, there’s a lot of opportunities and huge markets waiting for it. But there’s not too many entrepreneurs and people with business experience in this area,” said Mr. Gidron. “What we want to do is apply a bottom-up approach, to take raw concepts and research ideas and turn them into viable startups.”

Mr. Goor added that the model has more in common with entrepreneur-in-residence programs found at other funds than it does with the incubator model, in which teams of a would-be company are backed by administrative, sales, and support functions.

“This is led by science and innovation, not entrepreneurs.A lot of people might think it unusual to not have an entrepreneur involved from day one. But I think VCs will find it appealing because it will be a clean enterprise with a well-researched and well thought-out business model,” said Mr. Goor.