AppStream Raises $26 Million

The round was led by JK&B Capital with Goldman Sachs. Computer Associates and Mitsubishi Corporation have made strategic investments the company.

AppStream today announced it had secured $26 million in second round financing from venture capitalists JK&B Capital, Goldman Sachs and Evergreen, and from Computer Associates (NYSE: CA) and Mitsubishi Corporation (through Mitsubishi International Corporation and MC Silicon Valley). Previous investor Draper Fisher Jurvetson also participated in the round. Marc Sokol, executive member of JK&B Capital joins AppStream's Board of Directors.

AppStream also announced that Computer Associates will integrate AppStream's flagship product, AppStream for Java Technologies into their global enterprise infrastructures and work with the company to develop joint distribution and business initiatives. Earlier this year AppStream unveiled software streaming technology which accelerates and simplifies hosting, access, delivery and management of rich applications on networked devices.

The company was named by Red Herring as one of the "Ten Private Companies to Watch in 2000" and won "Best of Show" and "People's Choice" awards at Networld+Interop 2000. AppStream is privately held with headquarters in Palo Alto, California and R&D in Tel Aviv.

"We are astounded by the level of interest and enthusiasm we have received from both the financial and technology communities in AppStream. This investment, validated by an impressive syndicate of investors, underscores both the magnitude of the market opportunity and the global implications of an intelligent software architecture," said Uri Raz, founder and chief executive officer of AppStream. "The strategic investments from Computer Associates and Mitsubishi will provide the business and technology infrastructure necessary for AppStream to achieve its goal of creating more powerful, intelligent networks."

"Computer Associates firmly believes that AppStream's software streaming technology is fundamentally changing the way applications are deployed and accessed from the network," said Computer Associates' Chief Executive Officer Sanjay Kumar. "We are fully committed to working with AppStream to develop a global hosting network necessary to make intelligent network-based computing a reality."

JK&B Capital is a $600 million venture capital firm based in Chicago whose equity investments include Exodus Communications (NASDAQ:EXDS), (NASDAQ:PHCM), Commerce One (NASDAQ:CMRC), MPower Communications (NASDAQ:MPWR), Silverstream (NASDAQ:SSSW), and Interwoven (NASDAQ:IWOV).

Evergreen is an Israeli VCs managing over $450 million. Its equity investments include Radware (NASDAQ:RDWR), Exalink (recently acquired by Comverse, NASDAQ:CMVT ), Metalink (NASDAQ:MTLK), Radvision (NASDAQ:RVSN), Backweb (NASDAQ:BWEB), Gigant (NASDAQ:GGNT), CREO (NASDAQ:CREO), Commtouch (NASDAQ:CTCH).

Published by Israel's Business Arena on August 28, 2000

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