
Surf
Communications Solutions raises $8m - Poalim Capital Markets subsidiary Poalim
Ventures led the round Multimedia processing boards developer
Surf Communications Solutions Ltd. today announced that it raised an additional
$8 million. Poalim Capital Markets -- Investment Bank Ltd. subsidiary Poalim Ventures
led the round, joined by existing investors Giza Venture Capital, Pitango Venture
Capital, BOS Better Online Solutions Ltd. (Nasdaq: BOSC; TASE:BOSC) and Texas
Instruments Ventures LP. Surf Communications is a veteran Israeli start-up,
founded in 1996. The company develops triple-play (voice, video and data) convergence
solutions for wireline and wireless IP, cellular and telephony networks. The company's
solutions are based on a cards installed at telecommunications operators' gateways,
enabling the flow of information on a single card. In its previous financing
round in October 2005, Surf Communications raised $4 million. According to IVC
Online, the company has raised $48 million, including in the present round. Despite
its seniority, the company has been unable to generate rapid growth rates, and
posted $3.5 million in sales in 2005. The company is not yet profitable, but is
due to double its revenue in the second half of this year. In 2003, Surf
Communications changed direction, and began selling a combined hardware/software
solution. The company also restructured and hired new management. Eyal Zagagi
is now president and CEO. Poalim Ventures managing director Eran Gersht
said the investment in Surf Communications was made after a thorough examination
of the company and its management. "The new management has been in place
for a fairly long time, and the company has a good chance of positioning itself
as a market leader. On the sales side, the company already has a strategic cooperation
agreement with Texas Instruments (NYSE:TXN), whose components control 60 percent
of its target market. The company is also collaborating with other manufacturers,"
he said. Poalim Ventures VP Shirley Sheffer will likely join Surf Communications'
board. |