Israel Digital News

Web developer of consumer applications and portals IAC CAP has acquired StarNet Interactive, the owner and operator of GirlSense and KiddoNet, popular tween girl online community sites. Terms of the transaction were not disclosed.

IAC CAP has a product portfolio that centers on properties that enhance online communication and social networking through self-expression. In addition to Zwinky, one of the largest teen virtual worlds, the company properties include site like SmileyCentral, a popular consumer application that features emoticons primarily used for email and IM, and Webfetti, a social network profile customizer. IAC CAP will expand and strengthen its focus on the teen and tween girl market with the addition of the GirlSense and KiddoNet sites.

"Part of our growth strategy includes acquisition of products and companies that complement our core competencies," said John Park, president and CEO of IAC CAP. "Adding GirlSense.com to our existing teen targeted product portfolio provides us with broader teen mindshare, as well as access to the coveted tween demographic."

GirlSense offers highly customizable tools that allow girls to create their own virtual fashion boutiques. Since its inception, GirlSense has primarily grown its audience of 13 million registered users through word-of-mouth and viral networking.

StarNet was spun off from Gteko, which was acquired by Microsoft in November 2006, with $2.7 million funding led by Leo Capital and additional funding by Cathy Glazer, StarNet CEO and Founder, Pitango Venture Capital and other former shareholders of Gteko.

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Libox, an Internet startup that is developing a consumer facing media product, has completed a $1 million pre-seed financing round from Evergreen Venture Partners, Eilon Tirosh, Partam Tel Aviv and Argonaut.

“In Libox we recognized a winning combination of an entrepreneur who has “done it”, a solid business model and a market with a huge growing potential,” Erez Shachar, Managing Partner at Evergreen.

Libox was founded by Erez Pilosof who is also the founder of the Israeli Internet portal Walla. Libox, currently in stealth mode, will release its beta product later this year.

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Core systems software platforms provider Phoenix Technologies is to acquire BeInSync, a provider of online backup, secure remote access and file synchronization software solutions. Phoenix will pay $22.1 million in the form of cash and Phoenix common stock for the Israeli-based startup company.

BeInSync's patent-pending, peer-to-peer (P2P) technology allows users to seamlessly and securely access their latest files anytime and anywhere, automatically keeping files and folders 'in sync' and backed up across multiple computers, including home PCs, office PCs and laptops. The acquisition, which is anticipated to close within the next several weeks, will support Phoenix move to deliver its PC 3.0 promise of Embedded Simplicity.

“This acquisition is a leap forward in our effort to redefine and significantly improve the PC experience by embedding simplicity for end users," said Woody Hobbs, President and CEO of Phoenix Technologies. "PC 3.0 eliminates complexity and provides users with the kind of convenience they expect from their digital devices. We are bringing new benefits to the hundreds of millions of PC users globally who require built-in functionality on PCs by enabling secure and easy online access and collaboration and automated data protection to help them manage their digital lives.

"With this acquisition, Phoenix is extending its leadership in the PC industry to include products in its portfolio that will set the standard yet again for providing the best-in-class solutions to PC OEMs and their customers," said Tal Barnoach, Founder and Chairman of BeInSync.

Upon the closing of the acquisition, Sharon Carmel, Founder & Vice President of R&D at BeInSync, will join Phoenix as Vice President & Chief Scientist of Synchronization and Continuity Solutions and Phoenix will continue to maintain operations out of Tel Aviv, Israel.

Phoenix provides core system software (CSS) for personal computers (PCs) and other computing devices. The company was founded in 1979 and is headquartered in Milpitas, California. Trading on Nasdaq stock exchange, the company’s current market capitalization is $428 million.

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Content syndication software service provider WebCollage has secured $10 million in new financing round led by new investor Greylock Partners Israel with participation from existing investors Sierra Ventures, Cedar Fund and Gilde IT Fund. This round brings the total investment in the company to more than $45 million. WebCollage will use the capital to accelerate the development of its on-demand service and to expand globally.

"During the past year we have seen a rapid increase in the number of manufacturers eager to extend the breadth and depth of their online marketing reach and interaction with customers," said Yuda Doron, CEO of WebCollage. "WebCollage’s patented solution enables manufacturers to increase sales by 6%-15% by automating the exchange of Web marketing with business partners while uniquely addressing manufacturers’ requirements for ensuring brand consistency and providing richer, more interactive online merchandising experiences for their end customers."

"At a time when online marketing and advertising programs are rapidly proliferating, WebCollage offers a unique, transformative solution that allows manufacturers to engage with their customers directly at the point of product research and purchase," said Yoram Snir, Partner at Greylock Partners Israel and new WebCollage Board Member. "Moreover, we believe that with its proven ROI, its rapidly growing network of 750 top ecommerce sites and its more than 75 leading global brand clients, WebCollage is poised to become the premier online content exchange for online marketing and sales programs."

WebCollage’s web content exchange solution allow manufacturers to extend their Web product marketing content to all of their business partners and to optimize the selling and marketing of products via the Web. Founded in 2000, WebCollage is a privately-held company headquartered in New York, NY, with a development center in Tel Aviv, Israel.

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Free tech advice community site FixYa received $6 million in Series B funding by Mayfield Fund and Pitango Venture Capital. FixYa will use the funds to expand its business operations in the United States and Israel and to offer new products and services to its rapidly growing user base.

FixYa is an online source for free technical advice on gadgets, electronic equipment and consumer products. Fixya website has currently more than 6 million monthly unique visitors and covers more than 800,000 consumer products in all categories. More than 100,000 new questions and answers are posted every month. Product-category experts and other members of the community answer most questions in fewer than 12 hours.

“Consumers are dealing with a tidal wave of increasingly complex products at the same time that fewer resources are being committed by manufacturers to customer service and support,” said Raj Kapoor, managing director at Mayfield Fund, who will join FixYa’s board. “FixYa’s community-based approach creates an efficient marketplace where people can ask questions and get answers to any high- or low-tech problem they may have with their gadgets or other products.”

FixYa was launched in August 2005 by Yaniv Ben-Saadon, the current company SEO. In January 2007 the company has raised $2 million in Series A with an initial seed investment from Mayfield Fund and Pitango Venture Capital. FixYa is headquartered in San Mateo, CA.

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Gizmoz, a provider of 3D talking characters that enable individuals to put a unique face and voice to their digital communications, raised $6.5 million in Series B financing. The investment was led by DoCoMo Capital, a subsidiary of Japan's biggest mobile phone operator NTT DoCoMO, with additional funding from ngi capital. Series A investors Benchmark Capital and Columbia Capital also participated in the round.

Gizmoz also announced an agreement with AOL to allow users of its instant messaging service AIM to create 3D, talking Gizmoz characters to personalize their messages. The highly-engaging, animated Gizmoz Expressions can be customized, using a digital photograph and personal message, to trigger verbal and facial reactions as key words are typed in the instant message window.

Gizmoz will use the new strategic round to fund expansion into the Asian mobile internet market. "Gizmoz has enjoyed widespread adoption by consumers, advertisers and media partners over the last year, and with a number of exciting new products, programs and partnerships underway, the company is poised for significant expansion in 2008," said Eyal Gever, Gizmoz CEO. "As we move forward on a number of key initiatives, building cross platform synergies into our service is at the top of the list. To pursue our strategy, Asia will be key. This financing will play an important role in helping us develop unique offerings for this market."

"Gizmoz has done an excellent job of creating a social media platform for user-generated content that is unlike anything that exists in the world today," said Nobuyuki Akimoto, president and CEO of DoCoMo Capital. "Gizmoz's offerings come at an opportune time in the development of Japan's extensive mobile ecosystem, and they should feed the strong desire of Japanese consumers to embrace innovative content enhanced by Gizmoz's technology."

In May 2007, the Israeli provider of 3D animated avatars has secured $6.3 million Series A investment from Benchmark Capital and Columbia Capital. The company has offices in Menlo Park, CA and Ramat Gan, Israel.

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Blogs rating platform developer Outbrain has closed a $5 million investment round from Gemini Israel Funds, Lightspeed Venture Partners and GlenRock Israel.

Outbrain is a platform for ratings and recommendations of blog, news content websites and RSS feeds . Bloggers and digital publishers can use Outbrain's free widget or API to provide readers with rating functionality and personalized reading recommendations. Thousands of blogs have already installed the Outbrain widget, which support most leading blogging and RSS platforms, such as Blogger, TypePad, WordPress, Drupal, and FeedFlare.

Outbrain was founded in 2006 by Yaron Galai, Co-Founder of Quigo which was recently acquired by AOL, and Ori Lahav who previously headed R&D teams at Shopping.com. Outbrain is headquartered in New York City, with its R&D based in Israel.

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Endpoint data leakage prevention solutions provider Safend has secured $9 million in a round of funding from European asset management firm as well as Safend's existing investors, Elron, Intel Capital and Walden Israel Venture Capital. The new funding enables Safend to accelerate new product development, and to continue growth through strategic partnerships and distribution channels worldwide.

Safend solutions protects confidential data stored on enterprise PCs and laptops by monitoring the transfer of sensitive data and controls access to removable storage devices and wireless communication ports. The company has acquired more than 650 customers worldwide.

Safend was founded in 2003 by Gil Sever, the company CEO. The privately held Israeli startup is headquartered in Tel Aviv with US headquarters in Philadelphia.

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Streaming mobile games service provider Vollee will connect 3G phone handsets users to the 3D virtual world platform Second Life. Vollee’s Second Life mobile service will enable access to the virtual world of Second Life for Residents to explore, interact and communicate on-line.

The Second Life, which was created by Linden Lab, is offering individuals the opportunity to jointly inhabit a 3D landscape and build the world around them. Today this virtual experience has a rapidly growing population of Residents from around the globe, who are creating and inhabiting a virtual world of their own design.

Beta trials for Vollee’s new mobile offering for the Second Life Grid platform (an inter-connected platform which extends beyond the mainland of Second Life itself) will begin in May 2008. The Second Life mobile experience reformats the online world to fit on mobile phone screens while mapping the keys on handsets to commands in-world.

“For Linden Lab, this represents an intuitive way to extend the reach and accessibility of the Second Life Grid platform,” said Chris Mahoney, Business Development Manager, Linden Lab. “This is a great way for Second Life Residents to stay connected to their friends, business and experiences in-world, wherever they are.”

Vollee's interactive video streaming platform optimizes compression to minimize bandwidth requirements and also leverages the 3G mobile networks. The company offers video game, PC software publishers and mobile operators the opportunity to attract new gaming consumers. Vollee is funded by BlueRun Ventures and Benchmark Capital.

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WPP Digital, the digital investment arm of global advertising and communications services WPP Group, has invested in web-analytics company NuConomy.

NuConomy has developed web based analytics tools to provide unparalleled visibility into online user behavior. NuConomy provide new tools to measure consumers’ engagement and interaction with content, allowing digital publishers to gain more valuable insights into their websites.

NuConomy is expected to work closely with Kantar Group, one of the world's largest research, insight and consultancy networks. Part of WPP, Kantor helps clients make better business decisions through a deeper understanding of their markets, their brands and their customers. To find out how a Kantar company can help you, please click on the contacts button or use the website search facility above.

Founded in 2006 in by Sahar Nechmad, NuConomy CEO, the company is headquartered in Silicon Valley, California with R&D offices in Israel.

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Web mashups information platform development startup SemantiNet has completed a $1.7 million financial round led by Giza venture capital. Leading international and Israeli private investors such as Yossi Vardi, Ronald Cohen, Jeff Pulver, Robert Imershein and Moudi Ben-Shach joined Giza in the round.

SemantiNet is developing an information platform that utilizes Semantic Web concepts with a crowd sourcing approach. SemantiNet’s first consumer application is leveraging semantic web concepts to seamlessly integrate information and services from various websites in order to improve web browsing experience.

The company development is based on unique patent based programming paradigm, hardcore web technologies like Silverlight, Ajax and Linq, and a unique scrum & agile development methodology.

SemantiNet was founded in February 2007 by Tal Keinan, SemantiNet CEO, and Tal Muscal, the company CTO. Prior to founding SemantiNet, Keinan was a member of the Risk Department of Morgan Stanley, and Muscal served as a developer at Go Networks and senior software developer at IDF.

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Web community toolbars provider Conduit has raised $8 million from Benchmark Capital. The company will use the funds to upgrade its offering to deliver a complete family of online syndication solutions.

“Conduit's performance has been remarkable. In less than two years, the company's innovative, on-demand delivery model has enabled tens of thousands of web publishers to build and distribute community toolbars to millions of active subscribers worldwide,” said Michael Eisenberg, general partner of Benchmark Capital and Conduit board member.

Conduit's on-demand community toolbar service allows any web publisher to create, promote and maintain a unique, personalized community toolbar reflecting their website without the cost and complexity of custom software. More than 140,000 publishers have joined the Conduit network worldwide, including major brands such as Fox News, Lufthansa, Major League Baseball, Greenpeace, and TechCrunch.

Conduit was founded by Ronen Shilo, the company CEO, Dror Erez, the VP R&D and CTO of Conduit, and Gaby Bilczyk, Conduit VP Product Development. The comapny is privately-held with headquarters in Israel and Redwood Shores, CA.

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Health search engine iMedix has raised $2 million in seed funding from private investors.

The community based healthcare search engine is combining advanced search with community features that allow people to find and share health information in order to make better health-related decisions.

iMedix is planning to make its health search technology available to Health portals, publications, blogs and other sites with relevant health information.

iMedix is a privately held startup in Herzeliya, founded in January 2007 by Amir Leitersdorf and Iri Amirav. Leitersdorf, CEO of iMedix, previously co-founded Movota, which was sold to The Bertelsmann Group in 2005. Amirav, CMO at iMedix, established and led the marketing division at the video sharing website Metacafe.

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Mobile advertising solutions provider Amobee Media Systems has raised $12 million from Telefónica, Vodafone, Sequoia Capital, Accel Partners, and Globespan. This financing follows a previous a $15 million round of funding, bringing funding to a total of $32 million since Amobee was founded in May of 2005, according to IVC Research data.

Amobee Media Systems is providing ad-server and campaign management solution which seamlessly integrates relevant and contextual commercial messages into all types of mobile content. Telefónica through its O2 British subsidiary have begun trials of Amobee’s platform, and earlier this month Amobee partner with Vodafone Spain to insert dynamic and interactive advertisements into Vodafone’s portal, Vodafone Live! In September, Vodafone Czech Republic and Amobee announced the commercial launch of a new mobile advertising service.

Mobile advertising expected to generate $895 million worldwide in 2007 and anticipated to grow to $14.6 billion in 2011, according to Gartner. Informa forecast that worldwide mobile advertising revenues will rise to $11.35 billion by 2011.

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Video search engine Taboola has raised $1.5 million seed investment from Evergreen Venture Partner. The company developed hybrid solution that utilizing both contextual and behavioral algorithms, which enables a better match between the individual viewer interests and the video selection.

“In Taboola we recognized a solid business model and a solution which addresses the central pain of online video viewing – how to create a satisfying viewing experience,” said Erez Shachar, Managing Partner at Evergreen.

Taboola offers a personalized video recommendation solution that predicts the best subsequent videos to watch, based on analyzing user-generated video content. Taboola’s recommendation solution enhances user experience, increases time spent on their site, boosts loyalty and drives profitability. Marketers are able to have their ads served according to viewers’ personalized preferences and interests in a brand-safe environment.

Taboola is a privately held company founded in 2006 by Adam Singolda, the company current CEO. Prior to founding Taboola, Adam served as a commander of an elite unit in the Israeli Defense Forces in cooperation with the Israeli National Security Agency (I-NSA) for seven years. Alon Pilberg, Taboola's Chief Technological Officer, also served in an elite unit of the Israeli Defense Forces for six years.

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