Friendly Robotics, a developer and manufacturer of domestic robots for the home and garden, has completed a $7 million financing round at a company value of $15 million, before money.
Friendly Robotics shelved plans to hold a financing round this year based on a company value of $150-200 million. At the end of last year, the company held a financing round at an $85 million company value.
The current round was led by The Challenge Fund - Etgar, and the following existing shareholders also participated: Concord Ventures, US venture capital fund Coral, Israeli venture capital fund Technoplus Ventures, CDIB (China Development Industrial Bank), Kardan Technologies, and Kanit.
Friendly Robotics' first product is a lawn mower, the sales of which currently total several millions of dollars a year. The company's clients include Toro of the US, European company Stiga, and a series of independent distributors. The company is developing additional product lines, including robots for cleaning homes and clearing snow.
Friendly Robotics was founded in 1995 by Udi Peless, chairman and CEO, and Shai Abramson, Senior Vice President of Research & Development. Peless was formerly general manager of BioSense, while Amramson was Development Manager of Amgenics.
Friendly Robotics is registered in Israel and its development and manufacturing facilities are located in the Kadima industrial zone. European marketing is conducted from Israel, and marketing in the US is handled by a subsidiary of the same name, located in Dallas.
According to Peless, “The capital raised will be used to expand marketing and service in Europe and the US, as well as ongoing operations. The amount raised is expected to make the company profitable within two sales seasons.”
Peless said, “I’m pleased all our major investors, without exception, took part in the round. I’m also pleased at the trust placed in us by a new investor, The Challenge Funds, particularly during these difficult times in the industry.”
The Challenge Fund - Etgar manages capital totaling $244 million in two funds and is one of Israel's largest funds. It invests in multimedia, data communications, software, hardware, Internet and life sciences. Etgar funds 1 and 2 are managed by Joseph Ciechanover, former chairman of El Al and chairman of Israel Discount Bank
Published by Israel's Business Arena on 6 September, 2001