Tveez, MediaBoost and AdYouNet Score $$$

Online advertising and marketing startups are thriving in Israel and raising large amounts from VCs in the process.  Here are three that have made headlines:

Tveez Marketing Intelligence is a point-of-purchase marketing company founded in 2004 that supplies consumer-oriented companies with proactive sales and marketing management technology, enabling them to increase sales and deliver superior customer service.  They’ve recently raised $15 million, according to Haaretz, in a round led by Giza and Benchmark Capital, and include Yair Goldfinger(one of the founders of Mirabilis, developer of ICQ, sold to AOL for $400 million) amongst their founders.  Their clients include McDonald’s, 7-Eleven, HSBC and Sheraton Hotels and they’ve recently signed a $10 million deal with Citibank.  Read all about their main product, TVeezMI.

 

MediaBoost has raised $1 million from Teuza – A Fairchild Technology Venture, according to Globes, adding to the $500,000 they invested in the company last year, as part of the latest round to raise a few million dollars in financing.  The online advertising startup was founded in 2005 by CEO Alon Matasand VP Business Development Uri Shtrichman to create technologies and products that automate and optimize decision-making for online media buying.  Their group of “scientists” use tools ranging from game theory to operations research algorithms to create software which aims to improve “bottom-line profits from online campaigns.”  In 2006 they launched their flagship product, Adbooster, which is tailored specifically for advertising in Google AdWords.

 

AdYouNet Technologies is a “stealth mode” online advertising company founded in 2007 that has raised NIS 3.5 million from its current investors Xenia Venture Capital Ltd.(TASE:XENA) and NetService Ventures, according to Globes.  The startup is developing a CRM advertising application over the web that enables one-to-one identification of targeted users to deliver a tailored advertisement campaign. 

Teuza Planning to Raise $120M for New Projects

teuza.gifTeuza – A Fairchild Technology Venture Ltd., is a publicly-traded fund founded in 1992 and headqaurtered in Haifa which invests primarily in venture companies active in the fields of software semiconductors, communications, electronics and medical equipment. According to Globes it “plans to raise a $120 million follow-on fund having fully invested its current $36 million fund. The company raised this fund more than 16 years ago.” With this new fund Teuza plans to add biotechnology to its traditional investment sectors.

On the heels of Walden Ventures failed attempts to raise $125 for a fourth fund, Teuza hopes it won’t fall victim to a similar situation. Its hoping that its selling six months ago of its 40% stake in NESS Neuromuscular Electrical Stimulation Systems Ltd. to Bioness Inc. for $75 million will help finance the fund.

According to Teuza’s website:

“Total company market value currently stands at about 27M$ having a net equity worth of about 25M$. Since the beginning of January 2004 the price per share of Teuza shares increased by 70%. So far, Teuza Fund has invested in 15 companies, in the total amount of $35M. Usually the company prefers to have a large equity stake between 25%-49%, so that every successful exit becomes very significant. Teuza has successfully exited from nine companies (partial exit from four of them).”

Some recent exits:

  • In April 2000 Nova Measuring Instruments Ltd., in which the original investment was $900,000, issued its shares on the USA NASDAQ stock exchange (at a post money valuation of $285 million).
  • Teuza had a successful exit from WaveAccess when Lucent bought the company for $60 million. The profit from this realization was about NIS 43 million.
  • Teuza realized its balance investments in Oramir that was sold to for $27 milli