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% 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.
Published by Globes [online], Israel business news - www.globes.co.il - on July 30, 2006
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