"Globes" has learned that start-up company RichFX (formerly WebGlide) is raising $25-30 million. The sum will be raised at an estimated company value of at least $150 million, after money.
Several months ago, RichFX acquired US Internet company Blue Rock in a share-swap deal worth $10 million, in which Blue Rock received 4% of Rich FX share capital.
In the latest financing round, held eight months ago, the company raised $9 million from RealNetworks of the US, at a company value of $100 million after money. RichFX develops technology for producing and transmitting computer-generated video for e-commerce. Blue Rock has an online service named Gift Mail for purchasing and sending personal gifts.
RichFX was founded in 1997 by CEO Tal Keret, president Tomer Ben-Kiki, and Yair Mann. Investors so far include US investment fund Coral Venture and Israeli venture capital funds Polaris, Veritas, Giza and Poalim Capital Markets.
Rob Glaser of RealNetworks, Yossi Vardi, Yuval Almog and Chemi Peres are members of the board of directors. In December 1999, RichFX signed a strategic cooperation agreement with RealNetworks, under which 115 million RealSystem software users can view video content via RichFX's compression technology.
Published by Israel's Business Arena on 19 July, 2000