Israeli Startups on Way to Second Record-breaking Quarter in Row

Reports of $85 million raised within a span of just two days indicate that the sector's unprecedented investment gains in the third quarter will be replicated or even surpassed.

Israeli startups seem to be on track toward another record-breaking quarter for attracting investment, with reports of a total of $85 million raised within a span of just two days this week by seven companies. Startups in Israel raised $660 million in funding during the third quarter according to figures published by IVC Research Center, the most in any one quarter since 1999 during the dot.com bubble period, and the surge in investments is still going strong.

The largest of the seven efforts was by Wilocity, developer of 60 gigahertz chips for data transmission, completing a $35 million round of funding to boost total investment in the company to $100 million. Leading the round were Alan Feld's Vintage Investment Partners and Jerusalem Global Ventures headed by Shlomo Kalish.

Also participating in the current round were repeat investors Sequoia Capital, Benchmark Capital, Tallwood Venture Capital, Qualcomm Venture and Marvell Technology Group. Wilocity has 70 employees, including 60 at its headquarters in Caesarea where its development operations are situated.

Wilocity was founded in 2007 by four former Intel employees, Tal Tamir, Dany Rettig, Gal Basson, and Jorge Myszne, with Tamir filling the role of CEO and the others continuing to serve in management.

The new funding will be used by Wilocity to develop its marketing operations. The company confirmed the report.

On Tuesday SundaySky, developer of a platform for transmitting personalized video clips over the Internet, reported raising $20 million in its third round of funding, bringing total investment in the company to $40 million.

Founded in 2007, SundaySky doubled its workforce over the past year to 100 and revenues have now reached tens of millions of dollars a year. The company said it will use the funds to expand its operations in existing and new areas as well as to develop technology that will sharpen its competitive edge.

Lacoon Mobile Security said Wednesday morning that it raised $8 million in a round led by European-based Index Ventures. Also participating were private investors Shlomo Kramer, CEO of Imperva and one of the founders of Check Point, Mickey Boodaei, founder and CEO of Trusteer, and Rakesh Loonkar, president of Trusteer.

Trusteer was recently acquired by IBM for around $650 million, so it appears that the proceeds from the sale of companies in the field of data security are being recycled into the industry through new investment. Lacoon has raised $11 million in investment to date and has 30 employees, most of them located in Israel. The company was started in 2011 by Ohad Bobrov, Michael Shaulov, Emanuel Avner, and Sharon Sahar.

TaKaDu, the provider of software that monitors municipal water networks for leaks, landed $6 million in new investment in a round led by the international 3M Company. Also participating to expand their stake in the startup were the European ABB Group which first invested in early 2012, Emerald Technology Ventures, a Swiss fund specializing in cleantech, Gemini Israel Ventures, and Giza Ventures.

TaKaDu operates in six countries, including Australia, Chile, Portugal, and Spain as well as in Israel where it works with Jerusalem water utility Hagihon. The company has 30 employees in Israel, the Netherlands and the United States, and had previously raised a total of $15 million in investment. Amir Peleg founded the company and serves as its CEO.

Samanage, a developer of SaaS-based organizational computer and software management tools, reported having raised $5 million in new capital from Carmel Ventures and Gemini Israel Ventures. Founded in 2007 by Doron Gordon, Samanage has 30 employees located in Israel, Holland, and the United States and has now raised a total of $8 million. The company has reported boosting quarterly revenues by 30%, its sixth consecutive quarter of growth.

Another startup receiving a fresh injection of funding was Apos Medical and Sports Technologies which received a $5 million loan from Viola Credit, formerly Plenus. Viola Credit, like Carmel Ventures which invested in SundaySky and Samanage, belongs to Viola Group.

The company's technology is used for treating musculoskeletal disorders and rehabilitating sufferers of back pain and knee cartilage erosion. Over 40,000 people around the world are currently under treatment through the use of methods developed by Apos.

Apos was established in 2004 by Drs. Avi Elbaz and Amit Mor. In 2011 the company raised $8 million from Pitango Venture Capital.

Closing the list of seven startups is MyCheck which reported Tuesday having raised $4.2 million. Numbering among the company's who's who of investors are Saban Capital Group, Yoav Harlap, the Wertheimer family, Eli Elroy, and supermodel Bar Refaeli who also participated in the first round of funding.

MyCheck's main product is a mobile application facilitating payment by customers at restaurants and gas stations. The company works with Sonol and roughly 1,500 restaurants in Israel.

AP