Intel Capital invests in Israeli start-up InfoCyclone

InfoCyclone develops solutions for high speed information retrieval from large databases.

Intel Capital, the investment arm of Intel (Nasdaq: INTL), has invested in Israeli start-up InfoCyclone. The companies declined to reveal the size of the investment, but industry sources estimate it at $1-1.5 million.

Intel Capital’s current investment supplements InfoCyclone’s previous financing round last December, which raised $2.5 million at an estimated company value of $8 million, after money. The December round was led by Gemini Capital Fund Management and Star Ventures.

InfoCyclone develops solutions for high speed information retrieval from large databases. The company claims its future products will allow the simultaneous retrieval of hundreds of thousands of requests from data bases. InfoCyclone plans to present the initial version of the product by the end of the year, and begin trials with partners early in 2002.

InfoCyclone CEO Dr. Ran Giladi told “Globes” that the company initially plans to approach service providers and communications companies, followed by e-commerce sites and content providers.

InfoCyclone was founded in September 2000 by Dr. Giladi and CTO Michael Shurman, and has a staff of 20. Dr. Giladi earlier established the communications systems engineering department at Ben Gurion University of the Negev. Shurman was a founder of Allot Communications. Other InfoCyclone founders include former Lucent Israel president Shmuel Levy and former BMC VP business development Kirill Tatarinov. BMC acquired Israeli start-up New Dimension.

Intel Capital has invested in several Israeli companies, including MuTek, Phone-or, AppStream, CyOptics, Surf, Kagoor, Cash-U Cellular Applications, Chiaro Networks, Telescicom, Bluesoft, and Jungo.

Published by Israel's Business Arena on 30 April 2001

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