Songo Media raises $3m from IBI High Tech

Dor Lilo Photo: Ilan Besor
Dor Lilo Photo: Ilan Besor

Songo is a group of companies that develop advanced digital media and ecommerce technology.

IBI High Tech Mutual Fund announced that it would invest NIS 11 million ($3 million), less than 3% of its assets, in the Songo Media group. The fund has invested a total of NIS 14.5 million in startups to date out of NIS 120-125 million in total investments, most of it in marketable assets. A source familiar with the fund's investments said, "The fund has more deals in the pipeline… Keep in mind that the time it takes this fund to make a deal is different from the usual practice in ordinary mutual funds. After they decide to make a deal, it can take several months for it to be signed and done, because this isn't an ordinary mutual fund; it's also a venture capital fund.

The new investment in Songo is an investment in a group of companies, not just one, developing advanced technology in digital media and ecommerce. "Songo has proven that it is capable of finding sources of revenue. Its rate of revenue is phenomenal," the source says. "It's now ready to take another step forward by creating a generic system suitable for more players in the online spheres."

Yariv Gilat a partner in the investment

Songo was founded by CEO Ariel Soudak, Israel office general manager Snir Hassin, and board members Yinon Kuperstein. Its companies include Novelty Media, VidRide, Predicto, Liberdy, and BrandCrunch. Songo's subsidiaries are in various development stages, developing technological solutions on interfaces between ecommerce, media, and artificial intelligence. The group has offices in Tel Aviv and the US. The investment by IBI's fund was in partnership with Yariv Gilat, one of its investment partners who is also a leader in Songo.

IBI High Tech, which was initiated and aided by the state, is the only one of the five funds that asked to operate within an envelope of government protection that raised enough money to pass the government's threshold - NIS 403 million. It is managed by Dr. Dan Aks and Dr. Dor Lilo, who work together with consultants Eran Wagner, Uri Weinheber, and Alon Aginsky. The fund will invest up to 75% of its assets in startups. IBI High Tech completed its financing round in the first half of last June.

IBI High Tech is a marketable venture capital fund with the structure of a mutual fund. It was developed in order to enable the general public to invest in technology ventures. In July 2017, the Ministry of Finance Accountant General department and the Israel Securities Authority jointly published a "tender for selecting concerns to manage funds for investment in high-tech companies," to be listed on the TASE, with IBI High Tech being the only candidate to meet the criteria. IBI High Tech receives state benefits in the form of protection against losses up to NIS 50 million and the option of borrowing money from the state.

In mid-October, IBI High Tech reported its first investment in a startup - NIS 3.5 million in Nailomatic, together with investment partner Yigal Yaakobi. Nailomatic develops a consumer electronics product combining advanced technologies with personal esthetics.

IBI High Tech has a current net asset value (NAV) of NIS 0.9914 per unit, compared with its original value of NIS 1. The fund still features a non-marketable element and a large cash element designed to be available for investments in startups.

Published by Globes, Israel business news - en.globes.co.il - on December 11, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Dor Lilo Photo: Ilan Besor
Dor Lilo Photo: Ilan Besor
Tel Aviv light rail Light rail fares in Israel jump 33.3%

Bus fares will also rise 33.3% after the 2025 budget is passed.

Quantum Machines founders credit: Eyal Izhar Israeli co Quantum Machines raises $170m

Sources say that the company's valuation, which before the latest round was $520 million, has now risen to $670 million.

Pay cuts illustration: Shutterstock Treasury plans pay cuts for doctors, teachers, and civil servants

The move is intended to ensure that the budget savings target of NIS 5 billion shekels in 2025 is achieved, as part of efforts to reduce the state budget deficit.

Shekel credit: Shutterstock Vladirina 32 Shekel weakens after BoI rate call

Poria Financial Planning chairman Or Poria: There is growing uncertainty over the collapse of the hostage deal, and the increasing probability of renewed fighting in the south.

Daniel Aronovitz credit: Joseph Laor Insight Partners: $6b and still investing in Israel

Insight Partners newly appointed Israel partner Daniel Aronovitz tells "Globes" about the US firms plans for Israel and reveals the huge extent of past investment.

Bank of Israel Governor Amir Yaron credit: Eyal Izhar, Tali Bogdansky BoI Governor: We hope for two rate cuts in second half

Bank of Israel Governor Prof. Amir Yaron tells "Globes" he remains concerned about inflation, higher demand than supply, and real estate balloon loans.

Bank of Israel Governor Prof. Amir Yaron credit: Yossi Cohen BoI keeps rate unchanged for ninth consecutive time

The Bank of Israel Monetary Committee reiterated: the interest rate path will be determined in accordance with the convergence of inflation to its target.

Supervisor of Banks Daniel Hahiashvili credit: Yossi Cohen Regulator opposes Israeli banks increasing dividends

Supervisor of Banks, Daniel Hahiashvili is reportedly reluctant to let banks increase their dividend distribution, from a ceiling of 40% of profits towards 50%.

Metro credit: Bar Lavi Metro dispute over station entrances to delay tenders

NTA believes stations only need one entrance while the Israel Planning Administration says several are necessary.

Declining tech industry pay  credit: Ussama Azam Unsplash Tech salaries in Israel falling with jobs harder to find

Despite inflation tech salaries are declining, the Central Bureau of Statistics reports.

Tel Aviv credit: Shutterstock New Tel Aviv master plan massively boosts building rights

The plan, set to be approved for deposit, adds 11.3 million square meters of housing, 6.1 million square meters of office space and allows construction of 80-floor buildings in certain places.

Israeli apartments Credit: Shutterstock Apartments sold and rented

A selection of recent real estate deals in Israel in Kfar Saba, Even Yehuda, Rishon Lezion, Hadera, Haifa and Tzfat.

Jerusalem's Midtown project credit: DBLD architects Foreign residents dominate Jerusalem city center housing market

Wealthy foreign residents are increasingly pricing residents out of the market in central neighborhoods, as ghost apartments haunt the city.

Egyptian tanks in Sinai near Rafah credit: Reuters Mohamed Abd El Ghany Egyptian military violations in Sinai concern Israel

President Donald Trump's relocation plan for Gazans is further straining fraught relations between Israel and Egypt. "Globes" examines whether it could spark a war.

Yitzhak Tshuva credit: Gidon Levy and Tali Bogdanovsky Isracard shareholders approve acquisition by Delek

For the deal to go through, approval is now needed from the Supervisor of Banks and the Israel Competition Authority.

Air Canada Photo: Shutterstock Air Canada to resume Israel flights in June

The Canadian airline will resume Toronto-Tel Aviv flights on June 8 and Montreal-Tel Aviv flights in August.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018