The Internet giant already has a development center in Israel, and its new project, called Nautilus, is meant to give "maximum freedom to entrepreneurs" and "grant them access to all the tools and connections of a global company", said Hanan Laschover, chief executive of AOL Israel.

AOL will escort each start-up, which will be chosen from a variety of fields that are connected to its global activities, for a period of a year, the company said.

The first investment will be in Take&Make, AOL said in a statement, a start-up that has developed a platform for "do-it-yourself" videos.