Formula Group's SintecMedia has raised $10 million, at an estimated company valuation of $35 million after the money. SintecMedia manufactures broadcast management applications for large TV networks. Shamrock and Fishman Holdings, which have invested in the company in the past, did not invest this time, but were not diluted.
This was the second round of investments for SintecMedia and it was managed by Ascend Technology Ventures, which put in $3.5 million. Other investors included Walden Israel Venture Capital, which invested $3.15 million, and Karden Telecommunications and Formula Vision Technologies, SintecMedia's largest shareholder, which put down $1 million in this round.
SintecMedia was founded by Amotz Yarden, formerly the CEO of Sintec, from which SintecMedia splintered off in January 2000. In December 2000, the company secured a $6 million investment from Fishman Holdings and Shamrock.
SintecMedia developed OnAir, a software package that enables TV stations and networks to manage their broadcasting programs and commercials. SintecMedia focuses on the large networks, which account for about 10 percent of the market and include a total of 4,000 broadcasting stations, 2,000 of which are in the United States.
According to Yarden, the competition focuses mainly on small and medium-size clients, while SintecMedia targets the large networks. "Our system provides a solution that is specially tailored to the needs of the large networks; no other solution for their needs is currently available on the market."
SintecMedia began sales in July 2001. Its biggest client is Canada's CBC, which acquired a system for $10 million. SintecMedia's Israeli client list includes Golden Channels, Tevel, Israel 10 and Reshet.
"We are now competing for the tender to computerize the large networks in Canada and the United States," Yarden said. "We want to be the Amdocs of the TV world."
Noga Kap, a partner in Walden, said that the company had decided to invest after its parent company had made a due diligence investigation. "In the short term, the company will be expanding and will not be profitable, but according to our estimates, this will be SintecMedia's last private placement."
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