Sources inform ''Globes'' that fabless communications chipset developer ASOCS Ltd. will complete a $12 million financing round within a few weeks. Much of the funding will come from current investors Vertex Venture Capital, Fujistsu Ltd. (TSE: 6702; Nasdaq: FJTSY), Harel Hertz Investment House Ltd., Daniel Recanati's Rhodium Fund, Ami Segal's Forum Group, FinTech Fund, and private investor Gideon Ben-Zvi.
New investors will likely join the company, based on the recommendation by George Gilder, who invested in the company in February through Gilder Cremers Fund LP.
The new funding will bring the amount raised by ASCOS to $35 million.
This is not an easy time to raise capital. IVC says that while investment in start-ups in the second quarter was 20% higher than in the preceding quarter and 70% higher than in the corresponding quarter of 2010, most of the investment was in Internet companies. Companies which have not yet achieved breakthroughs in more complex fields, such as semiconductors, are finding it much more difficult to get venture capital funds to open their wallets.
Gilder is one investor who is prepared to invest in companies which venture capitalists avoid, specifically semiconductors. For years, he has written about high-tech investment in his online newsletter, "The Gilder Technology Report". His influence on investors who trust him and who are prepared to follow his investment lead has been named the "Gilder Effect" in financial circles. Companies he recommends may be able to raise considerable capital.
ASOCS CTO Doron Solomon and chief scientist Prof. Shomon Litsyn of Tel Aviv University founded the company in 2003. Its CEO is Gilad Garon. The company develops chipsets for mobile standards, providing a uniform solution for a range of cellular and wireless protocols for various applications, such as digital TV.
ASOCS plans to use the buzz created by Gilder's investment to hold a large financing round. In July, it notified the US Securities and Exchange Commission (SEC) that it planned to raise $10-12 million, and sources say that the round is due to be completed soon.
ASOCS had several millions of dollars in sales in 2010, mostly in China. The company has begun to examine a new application of mobile communications modem for the remote combat by the military.
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2011
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