Israeli start-up Cellvine Ltd., which develops solutions for improving signal coverage of wireless networks, today announced that it had closed a $4 million financing round.
Stratum Wealth Management LLC, an investment consultancy firm with a Jewish affinity controlled by investment advisor Charles Ganz, and Malabar Holdings Ltd., an otherwise secretive entity organized for investing in Israeli companies, made the investment. This was Statum Wealth and Malabar’s first investment in an Israeli company. The investors have an option to expand the investment by another $6 million, subject to Cellvine meeting certain milestones over the coming year.
Cellvine develops sophisticated products for improving wireless signals in areas with poor reception, such as sealed structures and underground rooms. The company’s amplifiers can measure the strength of a signal and adjust power accordingly, thereby reducing radiation emissions, while preserving reception quality. The amplifiers can increase the power on particular bandwidths at the expense of others, thereby preventing disruption of sensitive electronic equipment and facilitate the monitoring of radiation levels.
Cellvine co-founder and CEO Yoni Schiff said today that the company had completed development of its first group of products in accordance with its work plan, and had several million dollars in sales in Israel, Western and Eastern Europe, and Russia. Proceeds from the present financing round will be used to boost sales efforts in international markets, develop additional technologies, and strengthen existing infrastructures. He predicted that, as 3G technology spreads worldwide, demand for the company’s solutions for coverage in areas with poor reception would grow.
Schiff and president and COO Marc L. Seelenfreund founded Cellvine in 2002. The company was financed by a few million dollars in investments, and has relied on sales for its development almost from the beginning. Initial financing came from Peregrine Ventures, the Office of the Chief Scientist through Incentive Technological Incubator, and private investors.
Published by Globes [online], Israel business news - www.globes.co.il - on February 7, 2006