As predicted in “Globes” several weeks ago, processing hardware manufacturer Mango DSP announced today that it closed a $1.5 million financing round. Mango DSP was founded in 1996 and has raised $12 million to date. Two institutional investors, Clal Finance Mutual Funds Ltd and Mercantile Discount Bank’s provident fund participated in the latest round. In 2000, Mango DSP tried unsuccessfully to make an IPO at a company value of $40 million, and the company is considering a second attempt at a value of $40-50 million later this year.
Mango DSP develops and markets digital signal processing (DSP) systems for the homeland security and digital video markets. In its first years, it focused on DSP solutions for the medical imaging sector as well as under OEM agreements, and recorded its first sales in 2001. In 2004, it decided to change strategy and switched to the homeland security and digital video markets. As a result, it ended 2005 with sales of $14 million. In its latest announcement Mango DSP also said that it was on the verge of signing an agreement with a leading Fortune 100-listed company, which would substantially boost 2006 sales.
Mango DSP founder and CEO Baruch Peled said that the company had maintained constant growth since the change. “Since beginning operations in the video markets, Mango DSP has made several achievements, including contractual engagements with leading global companies. We are seeing increasing recognition for Mango DSP’s products and we are now in advanced talks for sales agreements to more Fortune 100 companies.”
Mango DSP’s latest financing round was designed to obtain financing from institutional shareholders, as part of the company’s growth strategy. It was led by investment house Cybele Holdings, which is controlled by Shachar Saidon, one of the existing shareholders in Mango. The other investors include Danbar Technologies, Inspiration Investments, DOH Investments and private investors. Mango DSP is headquartered in Jerusalem and employs 60 people.
Analysts have predicted that the digital video market will be worth $5 billion in 2006. The homeland security market is also expanding and is expected to total $6 billion this year.
Published by Globes [online], Israel business news - www.globes.co.il - on May 21, 2006
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