Growth of Chinese Startup Investment Likely to Slow This Year

CTERA to help build private cloud network for U.S. defense establishment | Israel Aerospace introduces combat robot

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People walk past a panel with China stock market indexes, which were down more than 7% and were suspended for the rest of the day, Hong Kong, China, January 7, 2016.
People walk past a panel with China stock market indexes, which were down more than 7% and were suspended for the rest of the day, Hong Kong, China, January 7, 2016.Credit: Reuters

Growth of Chinese startup investment likely to slow this year

Growth in Chinese investment in Israeli startups is expected to slow sharply in 2016 after two years of double-digit increases, according to estimates made by IVC Research Center. It said that based on the level of investment in the first four months of the year, total Chinese investment in Israeli startups is likely to reach $500 million, just a 7.1% increase from 2015. “While we expect the number of investors to increase, we’re not expecting to see a dramatic increase in the number of deals. We believe Chinese investors will exercise more caution over the next few months,” IVC told the China-Israel Hi-Tech Investments Forum in Tel Aviv last week. The slowdown comes after increases of 23% in 2015 and 72% in 2014. Chinese investment in Israeli venture capital fund should climb about 18% this year to $1 billion, it forecast, with the majority of funds raising capital this year accounting at least one Chinese investor. (TheMarker Staff)

CTERA to help build private cloud network for U.S. defense establishment

CTERA Networks said Mondayit would be an important subcontractor in a major U.S. government contract to help it build a private cloud network that will enable different parts of America’s sprawling defense establishment to share classified and unclassified files and work together online.  The company said its technology would be integrated into the framework of a $427 million project to upgrade the data storage system being led by St. Louis-based World Wide Technology for the Defense Information Systems Agency, which supplies computerization and information security for various federal agencies, among them the Defense Department, the U.S. Army and the White House. CTERA declined to disclose the value of its share of the multiyear project but said it would be in the millions of dollars.  CEO and co-founder Liran Eshel said the cloud network would be similar to ones CTERA has done for business customers like the European insurer AXA and fashion house Louis Vuitton but with a much higher level of security. (Amitai Ziv)

Israel Aerospace introduces combat robot

Israel Aerospace industries unveiled at the Eurostatory defense exhibit Monday in France a combat robot capable of providing intelligence and armed reconnaissance as well as protect convoys, serve as a decoy, and ambush and attack the enemy. Called RoBattle, operators can equip it with a variety of different payloads that include manipulator arms, sensors, radars and remotely controlled weapons to take over the most dangerous battlefield tasks from soldiers. Weighing about seven tons, it can travel on tracks or wheels, depending on conditions in the field.  “The RoBattle will become a significant player in the ground robotics market. It presents advanced technologies and capabilities that can close the operational gaps in the future battlefield challenges,” said Meir Shabtai, IAI’s deputy general manager of ground robotics systems. IAI said RoBattle can go into the field on its own or accompany troops. (TheMarker Staff)

IronSource says not eyeing IPO right now

IronSource, one of Israel’s most valuable private tech firms, is waiting for more favorable conditions before considering a stock market listing, chief marketing officer and co-founder Omer Kaplan told Reuters. The company, whose value exceeds $1 billion according to market estimates, makes tools to help mobile app developers distribute and profit from their apps. Last year, it raised over $100 million from investors including New York-based Access Industries, China’s PingAn Ventures and China Broadband Capital. Kaplan told Reuters that while IronSource was “definitely IPO ready,” now was not an ideal time to go public. “We are ready to act once the market changes. We are waiting for one of the giants, such as Uber, to put life in the markets,” he said. In the meantime, IronSource may consider more private fundraising to finance acquisitions and is looking at seven Israeli and U.S. companies, Kaplan said, noting that companies that provide features such as analytics could be a target. (Reuters)

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