Israel’s Polaris Venture Capital and AOL-Time Warner Investments of the US have invested $7 million in the first financing round held by Israeli cellular games company Valis. The company value for the round was not disclosed.
Valis developed a youth-oriented application software system called “cellmaZe”, which offers a wide range of interactive activities and cellular community tools, such as a friends locating system, chat, location-based games and a “dating service system”.
The system is being operated on an experimental basis by MIRS Communications of Israel and Swisscom Mobile of Switzerland, which operates a youth-oriented cellular network under the brand name “Friendzone”. The Swiss test of the system began two months ago, and will become a commercial service at the end of February. Valis is currently negotiating with other European and Far Eastern cellular operations.
AOL-Time Warner Investments venture group president Lennert J. Leader said on the announcement of the investment that Valis has a deep understanding of the social behavior of young people and their cellular service needs. Valis has the right vision regarding the future services of cellular interactive entertainment tools.
Valis founder and Chief Content Officer Oded Napchi said, “We believe that cellular is not just a technology. It is a new media like cinema or the Internet. Cellular operators worldwide understand the importance of the youth market and are looking for comprehensive solutions to reach them.”
Valis was founded in December 1999 by CEO Ariel Napchi, CTO Ronny Golan and Oded Napchi. The founders owned 60% of the company before the financing round, and the NCV fund of Britain held 40%, following a $1.4 million seed-stage investment at a company value of $3.5 million, after money.
MIRS Communications signed a cooperation agreement with Valis which gives it a three-year option to acquire 10% of the company’s shares at a 30% discount of the share price upon exercising the option.
Published by Israel's Business Arena on ý12ý February 2001