Tel Aviv-based Radview (Nasdaq: RDVW) boasts new interested shareholders: investment funds run by Prisma, Perfect and Tamir-Fishman.

Prisma Mutual Funds and the provident funds and training funds of Tamir-Fishman have invested in Radview, according to documents that all three companies deposited with the U.S. Securities and Exchange Commission.

Apparently Israel's institutional investors, flush with cash, aren't shy of small software companies with a history of losses.

Prisma now owns 13.8% of Radview, after it exercises its warrants. The investment firm's provident funds bought 12.9 million shares for $775,000 and received warrants for 9 million more shares.

The Tamir Fishman firm now owns 11.5% of Radview, after it exercises its warrants. The investment firm's provident and mutual funds bought 11.2 million shares for $673,000 and received warrants for 7.85 million more.

A relatively new brokerage, Perfect Capital Markets belonging to Yair Levinshtein, Amit Berger and Nir Malka, managed to raise through remarkable marketing NIS 834 million for its provident funds by the end of May, beating the amounts taken in by market veterans such as DS, Prisma and Analyst.

On two occasions, Perfect bought shares in Radview, in late March and early May. Its funds bought 20.3 million shares for $1.2 million, and received warrants to buy up to 14.2 million more. Perfect owns 21.8% of Radview, including after exercising its options.

Perfect commented that its investment manages had analyzed Radview, its markets and its development potential. The company is trading substantially below its fair value, they concluded, and invested 0.2% of the funds' total assets - NIS 2.2 billion - in the company.

In March, Radview raised $2 million from Israeli institutional investors through a private placement of shares and warrants, led by the Meitav brokerage. Radview sold 32.9 million shares at the market price, 6 cents per share, and gave the buyers 5-year warrants convertible into 23 million more shares at the same price. The company is using the funds for regular operations.

Radview develops software solutions to test the functioning and performance of software in Internet environments for the enterprise sector. Somewhat over a year ago a group of investors headed by the Fortissimo investments fund took over the company as it stood on the brink of liquidation. Fortissimo infused $3.2 million, but its final investment could reach $6.75 million.

In April the company announced that it was joining the global open-code community, and turned its webLOAD program, which tests in Internet traffic loads, into a free download from its website.

But its results remain lackluster. For the first quarter of 2007 it reported a 46% drop in revenues against the parallel quarter to $916,000. Its loss, not including certain costs, was $877,000, compared with netting $171,000 the year before.

After the financing from the institutional investors in March, Radview had $2.5 million cash, compared with $240,000 at the end of 2006. Its shareholders equity deficit shrank to $28,000, from $2 million at year-end 2006.