Sidav, a printed circuits manufacturer for the electronics industry, has reported advanced negotiations for bringing in a venture capital fund into Hyper-Banner Network, equally owned by Sidav and Erez Kokhba. Sidav and Kokhba signed a preliminary terms agreement with a venture capital fund and the parties plan to complete the signing of a final agreement in November.
The transaction calls for the fund to invest $1 million in HyperBanner, based on a company value of $3 million before the money, and will have the option of investing a similar amount over two years, based on a company value to be determined in negotiations.
HyperBanner Network (formerly AccordNet) is a start-up established at the beginning of ’96 and is engaged in the development of advertising and marketing tools for the Internet. The company currently has sites in over twenty countries, and sites on specific topics.
The company currently manages advertising of tens of millions of impressions monthly. Company revenues come from the partial sale of impression time to customers who pay to advertise. In the first half of ’98, HyperBanner began sale efforts for advertising space on the ‘Net, and during this time still posted an operating loss.
Published by Israel's Business Arena November 1, 1998