"Globes" has learned that start-up Neteo has raised $6 million in an initial financing round, at a company value of $25 million, after money.
The financing round was led by Formula Ventures, the venture capital arm of the Formula group. Additional investors were Shamrock Holdings, the venture capital arm of Roy Disney and Poalim Capital Markets. Unnamed private investors from industry in the US and Israel, who had invested in the seed stage in mid 1999 as "angels", also joined the round.
Neteos developed CRM (customer relations management) technology for Internet sites. Its target audience is medium-size businesses. The ASP software rental model is a hot and well filled field. The PC magazine recently wrote that Neteos' solution is the only one for this market.
Neteos was founded in 1999 by company CTO Alon Hochberg. It was set up from an engineering team working on and developing projects with various technologies since 1996. Six months ago, former Compaq Internet services manager Michael Chuli was appointed president and CEO.
The company started marketing its product in August. It has six customers and a staff of 40 in its Boston-based offices and R&D center in Israel.
Published by Israel's Business Arena on 20 September, 2000