Investment company thetime Ltd. has raised $5 million at a company value of $14 million, after money. The company does not operate in the form of a fund, and only raises capital as it is needed. In the past 18 months, it has raised $10 million, and it plans to make $20-30 million in investments over the coming years.
Investors participated in the round include Shaul Elovitch's Eurocom Communications Ltd., Roni Biram, Gil Deutsch, and Moshe Reuveni, as well as company founders, chairman Ilan Shiloach and CEO Nir Tarlovsky. The proceeds from the financing will be used for investments.
thetime focuses on young innovative telecom, internet, media and entertainment (TIME) technology start-ups. In 2009, it acquired the incubator, LabOne Innovations, for $3 million.
thetime started out with $3 million, and it initially appeared to be planning $10 million in investments over five years. The new financing has apparently raised this threshold. thetime is neither a venture capital fund nor an incubator. It does not charge a management fee, and it aims to turn a profit. Its business model is to invest fairly small amounts in companies for up to five years. It counts on up to $5 million a year from either sales of companies or dividends from profitable companies, not on large exits.
thetime's portfolio includes real-time 2D to 3D video conversion software developer Stergen High Tech Ltd.; smart grid solutions developer Greenlet Technologies Ltd.; content tracking and visual search developer Corrigon Ltd.; United Parents Ltd., which develops solutions for protecting children from online predators; online micro-business management systems developer SohoOS Ltd.; anti-bot solutions developer SiteBlackBox Ltd.; and touch-operated devices remote developer zRRo Ltd.
Tarlovsky told "Globes", "The new investors in the company, who include prominent names in the Israeli market, will help us pursue our business and strategic development in current and new companies."
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2010
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