Israeli start-up Neocleus Inc. today closed its first financing round, raising $5 million. Battery Ventures of the US and Gemini Israel Funds led the round. The round follows an investment of $700,000 made by the two funds in the company a year ago.
Neocleus is developing online access security management technology. The company has been operating in stealth mode until now. Neocleus CEO Ariel Gorfung and CTO Etay Bogner founded the company. Bogner previously worked for Sofaware, which was acquired by Check Point Software Technologies Ltd. (Nasdaq: CHKP). Gorfung was a founder of Optibase Ltd. (Nasdaq: OBAS), and E-Sponsor, which was sold to Intuwave of the UK.
Gorfung said that the company had obtained investment offers from numerous funds. “We decided to join Gemini’s seed program, which is suitable for very early-stage companies. Gemini recruited Battery Ventures, and they made the initial investment, which we used to make feasibility studies of the technology, as well as a market study. The company’s product and business model were presented to Israeli and foreign experts, and we’re already working with a number of potential customers, including some of the leading US financial institutions. These potential customers are working with us in developing the technology, its features, and customizing for various business units.”
Gemini partner Adi Pundak-Mintz said, “The meeting with the founders, their technological and business vision, and the positive response by the market led us to make to make an initial investment, and then invest in the first financing round. We have no doubt that Neocleus’s vision will become a commercial success on an international scale.”
Published by Globes [online], Israel business news - www.globes.co.il - on April 25, 2007
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