Telecom Italia has invested $1.5 million in Israeli cellular location provider LocatioNet. The investment is part of a $8.5 million financing round by LocatioNet at a company value of $28.5 million, after money.
LocatioNet was founded by Ofer Tziperman and Meir Dan in May 2000. The company has developed a platform that provides cellular and Internet location-based services. Its products are designed for cellular operators and producers of website navigation solutions.
Telecom Italia’s investment completes LocatioNet’s second financing round. The round was led by Jerusalem Global Ventures, which invested $5 million in the company in November 2000, and committed to bring in an additional $3.5 million strategic investment. Bank of America and Internet telephony company Net2Phone each invested $1 million. LocatioNet has raised a total of $11.5 million since its founding.
Telecom Italia stated that it considers itself a strategic partner, capable of assisting LocatioNet in marketing its products to operators worldwide. LocatioNet, based in the Netanya industrial zone, has 30 employees in Israel, mostly in development and engineering. The company has an office in New York that handles sales and marketing.
Telecom Italia announced only a few days ago a separate investment in an Israeli company, acquiring 14.3% of start-up V-Self, at a company value of $14 million.
Published by Israel's Business Arena on 15 March 2001