Phonetic Systems, Ltd., developer of voice-driven
access systems to large dynamic data sources, has secured $37.5 million in
financing led by General Atlantic Partners, LLC, the world's largest private
equity firm with an exclusive focus on IT, Internet and Internet-enabled
businesses. Also participating in the round are Sonera Media Holding B.V., and
SBC Communications Inc., and the Aurec Group through their joint investment
company, Aurum SBC Ventures. Other investors include Polaris Venture Capital,
Magnum Communications Fund, Formula Ventures, Evergreen Partners Management
Ltd., and Sadot Research & Development Fund Ltd.
Funds will be used to propel the development and deployment of applications
that provide fast and accurate voice-access to large, dynamic repositories of
information, as well as the company's strategic expansion into the
telecommunications service provider and wireless markets. Sonera has signed a
strategic agreement with Phonetic to use its technology as the platform for
strategic applications of the leading European carrier.
"Phonetic Systems is well-positioned to leverage its differentiated and
sophisticated technology in the enterprise, automated telecommunications
directory assistance and Internet voice-enabled markets worldwide," said Peter
Bloom, partner of General Atlantic Partners. "Our financial support reinforces
our commitment to the rapid expansion of the core Voice Search Engine (VSE(TM))
technology as an integral component of speech-enabled solutions."
Bloom, who will be joining the board of directors at Phonetic, continued, "We
are enthusiastic about Phonetic's growth prospects and are looking forward to
actively assisting the company with its strategic initiatives. We are
particularly pleased to be making this investment with the Aurec Group, our
strategic partners in Israel."
"Applications such as speech-enabled directory assistance represent the
progressive sophistication of services being developed and deployed for the
rapidly expanding wireless market," said Mikko Raunio, vice president and
business development officer, at Sonera. "Our financial and strategic support of
Phonetic furthers our commitment to the company's expansion into new markets."
"This investment represents the first step in the expansion of our voice
interface to large repositories of information outside of the enterprise
market," said Mark Baltier, vice president and chief financial officer at
Phonetic Systems. "General Atlantic Partners leading this first round of US
funding provides a strategic benefit to Phonetic because of their exclusive
focus on Internet and IT business coupled with their worldwide presence and
global perspective on technology. Leveraging support from our new strategic
investors will be key to our rapid expansion plans."
Published by Israel's Business Arena on February 13,
2001