TechNation: Israel Moves Up One Place in World Innovation Rankings

Britain’s BullGuard acquires Israeli internet of things startup; ColorChip raises $20 million in second funding round in a year; Massive global layoffs at Cisco expected to reach Israel, too.

An employee works at a laptop computer at the Jerusalem Venture Partners JVP Media Labs, situated in the JVP Media Quarter in Jerusalem, Israel, on Wednesday, Oct. 21 , 2015.
Bloomberg

Israel moves up one place in world innovation rankings

Israel moved up one place in the global innovation rankings compiled by the UN’s World Intellectual Property Organization, INSEAD Business School and Cornell University. Released on Tuesday, the Global Innovation Index 2016, which ranks more than 100 countries according to 82 indicators of innovation, placed Israel at 21, behind Austria and ahead of Norway. Israel ranked high, at No. 12, for knowledge and technology outputs, which include patents and scientific articles; in human capital (16) and in business sophistication (6). But it scored poorly in institutions, such as its regulatory and political environment, which was ranked 52nd. Israel was ranked in the top 25 economies for five of the seven pillars and was the only economy in the Middle East to rank in the top 10 for any pillar. China was the big winner in this year’s ranking, reaching the top 25 list for the first time ever and becoming the first middle-income economy do do so. (TheMarker)

Britain’s BullGuard acquires Israeli internet of things startup

The British antivirus company BullGuard said Tuesday it had acquired Israel’s Dojo-Labs, a maker of consumer ‘internet of things’ security technology that exited stealth mode just a year ago. Terms of the transaction were not disclosed, but media reports said Dojo’s founders Yossi Atias and Shmulik Bachar would be staying on after the takeover. Dojo’s eponymous device is designed to monitor network traffic and block anomalous behavior by connected devices on a home network. The product has experienced launch delays and isn’t yet on the market, the technology news site TechCrunch said. “More than four billion consumer devices are connected to the internet today. ... Until now, the security and privacy of these devices has been essentially nonexistent, leaving our most precious data and possessions exposed,” said BullGuard CEO Paul Lipman. “BullGuard and Dojo share a common vision for solving this critical market need.” (TheMarker)

ColorChip raises $20 million in second funding round in a year

ColorChip, a maker of optical components and subsystems used for high-speed computer networking, said on Tuesday it had raised $20 million, less than a year after it completed a $25 million fundraising round. The current round was led by Israel Growth Partners, with Israel venture capital funds Gemini and BRM contributing. Founded in 2001 by Shimon Eckhouse and Prof. Shlomo Rushin of the Tel Aviv University School of Engineering, and based in Yokne’am, near Haifa, the company’s technology is used in up-and-coming applications like streaming high-definition video, virtual reality, cloud computing and the ‘internet of things.’ The company slid into insolvency in 2009 but recovered and has raised $80 million to date. TheMarker has learned that the company recently signed a contract with Facebook. Proceeds from the latest round will go to boosting production capacity and developing new products. (Eliran Rubin)

Massive global layoffs at Cisco expected to reach Israel, too

The U.S. technology company Cisco Systems’ giant layoff will hit Israel, though not as badly as other parts of the company. News reports citing company sources said Wednesday that Cisco planned to lay off about 20% of its global workforce, 14,000 employees, as the company shifts it main focus from hardware to software. A source close to the company said that Cisco Israel’s workforce of 1,600 will likely lose between 100 and 200 employees. Cisco Israel managers were expected to hear last night from the company’s San Jose, California, headquarters about the extent of local layoffs. The news comes less than two weeks after Cisco completed its acquisition of the Israeli-U.S. cybersecurity startup CloudLock for $293 million and added its 30 Israeli employees to its payroll. (Eliran Rubin)