"Globes" has learned that DealTime of Netanya is raising $50 million at a company value of $250 million. This capital-raising exercise, the company’s third, will be, when completed, the biggest private placement ever made by a start-up company in Israel.
In a recent round in June, the company raised $20 million at a value of $60 million. Nomura of Japan, which invested $7.5 million, led that round. Also participating were the ISP (Israel Seed Partners) fund, which was the only institutional investor in the company at seed stage, Odeon of the United States, Advanta and Clal’s Infinity fund. Altogether the company has raised $24 million to date.
The current capital-raising exercise is a mezzanine, intended for financing the company’s activity until it goes public. DealTime refused to divulge when the company plans to go public, but confirmed that 2000 is the target.
DealTime was founded in January 1998 by Commtouch founder Nahum Sharfman. Amir Lev, a senior employee, floated Commtouch on Wall Street a few months ago. The company has an online price comparison service, which enables consumers to post queries on products they wish to purchase, at the price at which they want to purchase them. The DealTime software searches the net, and comes back to the customer when it has results.
The DealTime service has as members 700 merchants who make a regular payment and also pay commission on deals transacted through the service. Site members include G/buycom, a large e-commerce site for electronics and computer equipment, and MicroWarehouse, which offers similar products.
The site of Israel's RUSure was recently inaugurated, offering similar services. Yossi Vardi is a shareholder in RUSure.
Published by Israel's Business Arena November 18, 1999