Israel Phone-hacking Firm Cellebrite Falls Victim to Hackers

TechNation | Chinese group closes on $32 million of projected $50 million Israel-focused fund; Oracle launching accelerators in Israel for startups developing cloud tech; DarioHealth raises $5.1 million in private placement led by OurCrowd.

A data transfer device manufactured by Cellebrite Mobile Synchronization Ltd.
Tomohiro Ohsumi/Bloomberg

Chinese group closes on $32 million of projected $50 million Israel-focused fund

The CreditEast Israel Innovation Fund, the high-tech investment arm of China’s CreditEase Wealth Management, said on Friday it had raised $32.2 million for its second fund dedicated to Israeli startups and plans to bring the figure to $50 million within two months. Even before it finishes raising the full $50 million, the fund will begin investing in virtual and augmented reality, artificial intelligence and machine learning, digital healthcare, the internet of things, cloud and data storage and advanced manufacturing, said partner Benjamin Weiss. The fund is the second for CEIIF, which raised $30 million in October 2015 for it first fund and has since invested about $12 million in eight startups, including the flash storage maker Kaminario and Saguna, whose technology makes mobile broadband faster. “Companies need help entering the Chinese market so are happy to get us as investors,” said Weiss. “In a certain way we’re more like strategic partners.” CreditEase Wealth Management offers global asset allocation services for the wealthy and middle-class Chinese. (Ruti Levy) 

Oracle launching accelerators in Israel for startups developing cloud tech

The U.S. software company Oracle Corporation said on Monday it was opening an accelerator program in Israel for startups developing cloud technologies or whose technologies are based in the cloud. Run by Oracle’s research and development team, the program provides six months of mentoring from technical and business experts, advanced technology, access to Oracle’s customers, and partners and investors. A pilot program was first launched in India and more centers will follow, Oracle said without disclosing how much it was investing in each center. Oracle’s startup cloud accelerator program builds on its excellence center for Israeli startups, which was established in 2003 by Oracle Israel in cooperation with the government to support the growth of early-stage startups. Thirty six companies were approved to take part in the excellence center, totaling more than $150 million in estimated exits. (Reuters)

Israel phone-hacking firm Cellebrite falls victim to hackers

Cellebrite, an Israeli firm whwich gained fame (or notoriety) for helping law enforcers crack into locked smartphones, admitted last week that it had fallen victim to hackers. The company said in a statement last Thursday that it has “recently experienced unauthorized access to an external web server” and was investigating the extent of the breach. The server that had been breached, it said, included a legacy database backup of my.Cellebrite, the company’s end user license management system, but added that the company moved to a new user accounts system before the hack. The hacker obtained basic contact information of users registered for alerts or notifications on Cellebrite products and hashed passwords for users who have not yet migrated to the new system. The statement came after Joseph Cox, who works for the technology news website Motherboard, said an unidentified hacker gave him 900 gigabytes of data from Cellebrite servers, including messages from authorities in Russia, Turkey and the Gulf. (TheMarker Staff)

DarioHealth raises $5.1 million in private placement led by OurCrowd

DarioHealth, a U.S.-Israeli digital-health technology company, said last week it had raised $5.1 million in a private placement subject to shareholder approval in a round led by the crowdfunding platform OurCrowd. OurCrowd made the investment through its Qure digital-health fund, which was launched in November. Together with existing investors in the Nasdaq-traded company, Qure bought about 1.82 million shares at $2.80 each and wants to purchase a similar amount of stock at  $3.50 a share. DarioHealth’s flagship product, the Dario Smart Diabetes Management Solution, combines an all-in-one blood glucose meter, native smart phone app for iOS and Android, website portal and a wide variety of treatment tools for diabetes sufferers, their doctors and healthcare systems. The Dario Smart Diabetes Management Solution was approved by the U.S. Food and Drug Administration in 2015 for iOS mobile devices and has launched in the United States. (TheMarker Staff)