Israeli start-up Skyline Software Systems is raising $30 million at a company value of $110 million, after money. The sole investor in the round is US investment bank DLJ, which is also expected to lead the company to the planned issue on Nasdaq. The valuation in the round is much lower than the company anticipated in March, when it wanted to raise $30-50 million at a company value of $200 million, after money.
Skyline develops technology and software for two-dimensional satellite and aerial photography processing and other geographical data, and their three-dimensional interactive presentation over the Internet. The system Skyline developed processes the photographs into graphic software, enabling focusing and improvement of the picture, editing and captions. The target audience for the technology consist of map-based service concerns, such as engineering, tourism and vehicle navigation.
Skyline, founded five years ago, has held two financing rounds, the last of which took place at the end of 1999, when $8 million was raised, at a company value of $28 million, after money.
The company recently signed an agreement with MapQuest, acquired in January by AOL for $1.1 billion. MapQuest, regarded as the largest Internet map supplier, accounts for 80% of traffic in the Internet mapping sector. Under the agreement, Skyline will use its technology in MapQuest maps, planting virtual advertising along the way on balloons and on the maps themselves.
Since 1998, Skyline has cooperated in the Internet field with Space Imaging, regarded as the largest civilian map company worldwide. The Lockheed Martin and Mitsubishi owned company has a mapping resolution of one meter and sells mainly in the urban sector.
Skyline says that it has no competitors, due to its innovative technology and the enormous mapping work it requires.
Skyline shareholders include four founders who own 44% and several companies listed on the Israeli capital market: Aura Venture Capital Fund (11%), Sadot R&D (4.1%), Technoplast Technologies (3.2%) and Technorov Holdings, venture capital fund of Alrov, owned by Alfred Akirov (6.5%). Aditional investors are Poalim Capital Markets, Shrem-Fudim-Kelner, the Vertex fund and employees.
Published by Israel's Business Arena on 22 August, 2000