TechNation: Qumra Capital Raises $115 Million for Second Venture Fund

Israeli blockchain startup investors lose $7 million to hackers ■ Syte.ai nabs $8 million for AI-based fashion searches ■ Algomizer buys digital-ad startup Linkury for $11.8 million

U.S. one-hundred-dollar bills.
Kim Hong-Ji / Reuters

Qumra Capital raises $115 million for second venture fund

Qumra Capital, an Israeli venture capital manager investing in late-stage startups, said on Wednesday it had raised $115 million of a projected $150 million. The fund, its second after a $100 million fund it launched three years ago, raised the capital mainly from family offices in the United States and Europe. Qumra said it expected to raise the rest of the $150 million over the next few months. Founded by Boaz Dinte, Erez Shachar and Sivan Shamri Dahan, Qumra has invested in startups like Jfrog, AppsFlyer, Minute Media and Fiver. Dinte and Shachar were partners at the Evergreen fund for a decade and continue to manage its portfolio. “There is a new generation of talented entrepreneurs with vision and passion for building meaningful companies and market leaders,” said Shahar,” This is a generation that is in no hurry to exits, with experience, patience and patience for long-distance running.” (Eliran Rubin)

Israeli blockchain startup investors lose $7 million to hackers

CoinDash, an Israeli blockchain technology startup, admitted on Tuesday that $7 million was stolen by hackers from investors trying to participate in the company’s initial coin offering, but CoinDash said it appears that the sending address was hacked and changed to a fraudulent address. “CoinDash has launched an internet forensic investigation to determine who was behind the hack,” the Tel Aviv-based company said. “We have contacted law enforcement agencies and fully cooperate with them on all matters.” A rapid surge in token prices to around $300 from $8 at the start of the year has caused a flood of investors for fundraising projects like CoinDash’s, according to Bloomberg News. The coin sale was scheduled to last 28 days or until it reached a $12 million limit. Both investors who sent ethereum to the fraudulent address and to the correct one will receive their intended CoinDash tokens, the company said. (TheMarker Staff)

Syte.ai nabs $8 million for AI-based fashion searches

Syte.ai, a startup that uses artificial intelligence to help fashion shoppers, said on Wednesday it had raised $8 million in a funding round led by NHN Ventures and group of mostly Asian investors. They included Naver corporation (a leading search engine in Asia-Pacific region) and its Japanese Line Corporation unit; Israel’s Magma Venture Capital, Remagine Venture Capital, KDC Ventures and NBN Ventures. The company said it planned to use the money to expand its presence in the U.S., Europe, and Asia-Pacific. “We have been hearing a lot about next-gen image search solutions over the past years, but the actual outcome has been rather disappointing,” said Woo Kim, NHN’s managing director and partner. “Syte.ai’s unique approach of redefining how machines understand images is simply ground breaking innovation.” Founded In 2015, Syte.ai’s first product, Glamix, was an AI-based personal fashion assistant for consumers. It is now offering its visual search fashion platform to retailers and publishers to assist online shoppers. (TheMarker Staff)

Algomizer buys digital-ad startup Linkury for $11.8 million

Algomizer, whose software automates and optimizes ad campaigns on the internet and platforms like Google and Facebook, said on Tuesday it was buying Linkury for $11.8 million in cash and shares in a move that effectively remakes the company. Linkury, based in Herzilya, is also in the digital ad business. Its automated media-buying system enables content sites to run ads based on users’ interests, based in turn on algorithms that collect demographic and behavioral data. Algomizer, a Tel Aviv Stock Exchange-traded company with a “going concern” warning attached to its 2016 financial report after a loss of 12.1 million shekels ($3.4 million), had to borrow and issue shares and warrants to finance most of the deal. By contrast, Linkury has long been profitable. Last year, it had revenues of 72 million shekels, compared with 30 million the year before, and earned a pretax profit of 13 million. Its CEO, Naty Namdar, will become the combined companies’ CEO. (Guy Erez)