Ultra-Orthodox VC Invests in Verifuel

There isn’t much connection between the ultra-orthodox community in Israel and aircraft, especially the military kind.  Nevertheless, Bashalva, a Haredi VC fund, has invested NIS 1.1 million in Aviv Tzidon’s new startup, Verifuel, which is valued at NIS 7 million.  Aviv Tzidon is the founder of BVR Systems, a company that develops and manufactures training and simulation projects for the military and civilian industries.

The former IAF combat pilot, according to Globes, “has developed an optical sensor that enables pilots and ground crew to spot the presence of water in a plane’s fuel tanks, which is a significant hazard.”  The investment is Bashalva’s second in a company established by Tzidon. “It also invested in his ergonomic chair, called the “Netron”, which has hydraulic and massage systems, designed for the computer working environment.”

Bashalva, which means “in peace”, is managed by Yosef Boimgarten out of Jerusalem.  It was launched two months ago with the mission of investing in the Haredi community and has already raised $5 million.

Brazilian Optics Giant Buys Civcom for $40M

civcom.jpgNot only Microsoft is buying up Israeli start-ups. Brazilian optical network solutions giant Padtec has paid $30-40 million for Civcom, an Israeli pioneer in the development and manufacturing of cost saving optical solutions for communications, test and measurement, and military applications. The move comes on a wave of rapid expansion for Padtec as it seeks to become a major player in the international optical communications market.

According to Jorge Salomão Pereira, CEO and Head of Technology Division at Padtec, “The Civcom acquisition is much more than a typical company acquisition. It represents a great opportunity to offer competitive solutions to the high speed optical communication market.”

Meron Raz, CEO of Civcom, adds that the acquisition will “will increase [Civcom’s] worldwide market share and will add leading knowledge and more capability” to their products and technology.

That buyout doesn’t exactly break the bank for Civcom’s investors Pitango, JVP, Concord, Ascend, Formula, and Morris Kahn’s Aurum Ventures. They invested nearly $38 million in the company.

But hey, you win some, and you break even on others.

For more on this check out Padtec’s press release or an interview with the Padtec CEO.