RadView has raised $6 million at a company value of $25 million, before money ($31 million after money). The financing round was led by Boston based venture capital fund Northbridge, which invested $3.5 million.
The remaining $2.5 million were invested by existing shareholders, including listed company Sadot R&D, brothers Zohar and Yehuda Zisapel, Formula Ventures and US company Platinum Technologies.
RadView is managed by Ilan Kinreich, formerly R&D manager at Mercury. The company has developed software called Webload for testing and analyzing the performance of Internet applications, with special emphasis on testing systems under varying user loads on e-commerce applications on the Internet. The product makes it possible to plan in advance the resources required to ensure quality service in high-load situations.
RadView, whose headquarters are in Boston, and whose development center is in Israel, is competing with Segue and with Israeli company Mercury, which is the world leader in software testing tools. Segue, which also develops a wide range of business software applications, has sales of $44.7 million, and losses of $15 million. It is traded on NASDAQ at a company value of $185 million.
Formula Ventures, the Formula group’s venture capital fund, invested $750,000. It has supported RadView since day one, and it currently holds 17% of he company. Formula Ventures chairman Shai Beilis told "Globes" today: "RadView is a model of an Internet company that merits attention and has a value to match, but it also has genuine revenues, because it meets an existing demand in the market."
Sources in the company told "Globes" that RadView would end 1999 with sales of $5 million, compared with $1 million last year. What is more, RadView officials estimate that the growth rate will be sustained in the foreseeable future.
Sadot R&D invested $460,000 in RadView in this round of financing, which brings its investment in the company to $2 million. Sadot currently owns 10% of RadView shares, fully diluted.
Published by Israel's Business Arena December 15, 1999