Netanya-based start up company MystiCom is seeking to raise $15 million a company value of $90 million, after money. The company refused to comment on the report. Investors in the present capital raising round include venture capital funds Giza and Evergreen.
One of Israel's most promising start-up companies, MystiCom specializes in the design of chips for data communications networks based on DSP technology. The company is operating on a new business model, whereby it offers know-how and component design, but does not manufacture the components (the model is known as fabless-chipless).
MystiCom recently signed a strategic agreement with Texas Instruments, and there's no ruling out the possibility that TI may participate in the present capital raising round. Under the MystiCom-TI agreement, TI will pay for the right to use MystiCom's technology, as well as future royalties on every component to be manufactured.
The Newbury and Polaris funds invested in MystiCom at the seed capital raising round. The first round, in which $2 million were raised, was led by the Eucalyptus Fund (affiliated with Tamir-Fishman and Hambrecht & Quist). In 1998 the company posted $1 million in revenues. The company's customers include leading semiconductor makers in the US, Europe and the Far East.
Founded in 1997 by Dr. David Almagor, MystiCom currently employs 36 staff, of which 31 in Israel (Netanya) and five in the US.
Published by Israel's Business Arena September 7, 1999