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Portfolio Investment

Portfolio Value Creation

Craig Marshak and Jack Lahav, working as a team, have been responsible for nearly $5 billion dollars of portfolio value creation:

  • Launched the first investment round for Shopping.com, sold to EBAY for $600 million
  • Organized the first institutional round for CYBERARK, now trading NASDAQ at over $2 billion
  • Organized a $1 million investment into QUIGO which resulted in an ultimate growth and sale to AOL for nearly $400 million
  • Organized the first investment rounds to VOCALTEC, which was listed at a $200 million valuation
  • Advised and organized early rounds for 888 Holdings now valued at over $1 billion
  • Advised and organized early investment rounds to HEXAGON TECHNOLOGY now valued at over $200 million, this 2009 start up now boasts 600 employees globally
  • Advised and organized first seed round to AVATRADE.com, now valued at nearly $150 million.

Israel Venture Partners has backed numerous companies in the internet search sector, fables semiconductor chips, social media, biotechnology, medical device, and other disruptive categories. Israel Venture Partners team operates across the globe and specializes in many industries and geographies. Israel Venture Partners works with companies in seed, early, and growth stages.

Who we are

Our management team is comprised of experienced entrepreneurs, financial investors, and highly experienced investment bankers and corporate finance advisors who have helped build some of the world’s most successful companies. We have in the past provided financial advice, and helped to develop some of Israel’s most respected and successful companies. Several of our portfolio companies have emerged from seed stage, to valuations in the hundreds of millions of dollars, including Shopping.com, Quigo, and Vocal Tec. We have identified emerging trends before they became obvious, such as backing the first ever Voice Over IP company with Vocal Tec in the late 1990s, and identifying and backing an early entrant in the comparative search sector with Shopping.com. When it comes to finding a partner who supports your largest aspirations, we dream big with you. We work with companies in new and emerging industries before they become obvious.

What we look for

We support entrepreneurs who have a global vision, and whom we believe have a platform which is scaleable and deployable globally. We work with teams who disrupt big, incumbent-driven industries. We focus on exceptional entrepreneurs with big ideas that disrupt existing categories at seed, early and growth stages. We’re focused on companies specializing in consumer and enterprise IT, commerce, cloud, enterprise, big data, and bold new technologies.

Cyber-Ark

Craig Marshak organized the first round institutional investment for Cyber Ark of around $2 million, on a $30 mm valuation. CyberArk now trades on NASDAQ at a $2 BILLION valuation.

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Craig Marshak organized the first round institutional investment for Cyber Ark of around $2 million, on a $30 mm valuation. CyberArk now trades on NASDAQ at a $2 BILLION valuation. Cyber-Ark Software, Ltd., develops and markets the PrivateArk Inter-Business Vault, the first and only complete solution for securely sharing information between business partners. The Vault is a conceptual and technological breakthrough that substantially decreases costs, improves security and enhances the performance associated with sharing information with business partners and remote offices. Cyber-Ark was founded in 1999 by a group of Israel`s leading computer engineers and security experts and is headquartered in Dedham, MA with offices in the United States and Israel.

Nogatech

IVP Partner Craig Marshak  provided first and second round venture financing.

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IVP Partner Craig Marshak  provided first and second round venture financing. Nogatech provided computer chips that compress digital video images and establish connections, or video connectivity, between video devices and computers, as well as between video devices across a variety of networks. Our products enable real-time transmission of video, audio and data signals into personal computers and hand-held personal computing devices known as personal digital assistants. Our chips are small, power efficient and work together with our related decompression software for use in processing video images on all major operating systems.

Exit / Outcome: $42 million was raised in an offering priced in May of 2000; Nogatech was ultimately sold in a M and A transaction to ZORAN.

Shopping.com

IVP Partner Craig J. Marshak  provided the first $5 million institutional round financing, after the company had received seed stage funding from Israel Seed Partners. shopping.com was ultimately sold to EBAY for over $600 million in cash.

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IVP Partner Craig J. Marshak provided the first $5 million institutional round financing, after the company had received seed stage funding from Israel Seed Partners. shopping.com was ultimately sold to EBAY for over $600 million in cash. Initially launched as Deal Time.com, the company was developed by Dr. Nahum Scharfman, who had previously developed Commtouch ( a company which IVP professionals had also previously backed.) With $3.8 million in net income and $42 million in revenue in the first six months of the year, the company fits the Google model of a profitable dot-com going public. The Company raised $120 million in its IPO, and its shares were up 60% after its first day of trading in October of 2004. After Dan Ciporin was recruited in as the new CEO, the company grew rapidly, and later merged with Shopping.com. Following its NASDAQ IPO, the company was ultimately sold to EBAY.

Exit / Outcome: IPO on NASDAQ, followed by sale to EBAY for $600 million.

Quigo

IVP Partner Jack Lahav provided the early stage funding for Quigo and became Chairman in 2001.

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IVP Partner Jack Lahav provided the early stage funding for Quigo and became Chairman in 2001. Quigo is a developer of search solutions for online contextual advertising and search engine marketing in their AdSonar and FeedPoint products respectively. AdSonar is a contextual advertising platform for publishers that applies proprietary semantic algorithms to automatically identify, match and deliver the most relevant ads to each particular page of content. FeedPoint provides a turnkey, search engine marketing solution for advertisers and agencies. With FeedPoint, Quigo has developed the industry’s most advanced search engine marketing solution for easy feed creation and to increase ROI. FeedPoint effortlessly generates keywords, titles and descriptions from ordinary web pages for all search and comparison shopping engines.

Exit / Outcome: Quigo secured an initial $5 million institutional round from Highland Capital, in March of 2004, and was subsequently sold to AOL for some $340 million.

Commtouch

Commtouch had its Nasdaq debut IPO in 1999, and is an example of a survivor of the dot com bubble. The partners of IVP provided the last round of Pre-IPO funding for the company, prior to the going public transaction.

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Commtouch had its Nasdaq debut IPO in 1999, and is an example of a survivor of the dot com bubble. The partners of IVP provided the last round of Pre-IPO funding for the company, prior to the going public transaction. Having started as a company providing email hosting services for SME users, the company transformed into a leading SAAS email security provider. Today, Commtouch is a leading provider of Internet security technology and cloud-based services, delivers superior detection solutions for vendors and service providers protecting billions of Internet transactions in real-time. With award-winning, patented technologies and six global data centers, Commtouch’s email, web and antivirus security capabilities increase the value and profitability of our customers’ products and solutions, keeping 350 million end users across 190 countries safe online. Founded on a unique cloud-based approach, Commtouch’s GlobalView™ and patented Recurrent Pattern Detection™ (RPD™) technologies make threat data immediately available to millions of endpoints, providing up-to-date spam classifications, URL categorization, and malware detection services.

Exit / Outcome: Today, Commtouch trades in the USA under the symbol CMTCH, and has a market value of some $70 million, It remains profitable, with about $4 mm per annum annual income.

Medgenics

IVP Partner Craig Marshak working together with Arbel Capital in Israel, provided the private placement financing and London public listing capital required to re- start Medgenics.

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IVP Partner Craig Marshak working together with Arbel Capital in Israel, provided the private placement financing and London public listing capital required to re- start Medgenics. Medgenics is developing a unique sustained-action therapeutic protein delivery technology for the treatment of a range of chronic diseases. The technology – called a “Biopump” – is made from the patient’s own skin and is implanted in a simple procedure to work inside the patient’s body, to produce and deliver the active protein steadily over a sustained period to treat the targeted disease. Medgenics believes that this biological approach can replace a major portion of the regular and costly injections of therapeutic proteins patients currently receive. The Company has demonstrated proof-of-principle of its treatment procedure in a clinical trial using EPODURE in anemic patients. A long-acting version of EPODURE designed to produce and deliver a therapeutic dose of EPO steadily for six months or more began Phase I/II efficacy trials in Israel in mid-2008. Clinical trials with INFRADURE are intended follow in due course. Beyond this, the Company plans to develop a pipeline of products based on its Biopump technology targeting the large and rapidly growing global $50+ billion protein therapy market, which is expected to grow to some $132 billion per year in 2013.

Medgenics had first been established in Israel in 2000, and after raising some $30 million encountered financial difficulties after first round tests failed to perform as expected. Sensing an opportunity, Arbel Capital, together with Mr. Marshak, raised $2 million on a $ 6 mm post money valuation to re-start the company, and subsequently raised further capital to list the company on the London AIM stock exchange.

Exit / Outcome: In 2013, the company raised a further $30 million through a Follow On offering on the AMEX stock exchange in the USA, and reached a peak valuation of some $150 million on a fully diluted basis.

Vocal Tec

VocalTec Communications Inc. is an Israeli telecom equipment provider. The company was founded in 1989 by Alon Cohen and Lior Haramaty, who invented and patented the first Voice over IP audio transceiver.

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VocalTec Communications Inc. is an Israeli telecom equipment provider. The company was founded in 1989 by Alon Cohen and Lior Haramaty, who invented and patented the first Voice over IP audio transceiver. VocalTec continues to be a leading VoIP company, with major customers such as Deutsche Telekom, Telecom Italia and many others. VocalTec released the first ever Internet VoIP program in February 1995. Today VocalTec specializes in providing carrier-class multimedia and voice-over-IP solutions for communication service providers. The company provides the Essentra solution suite that comprises the essential building blocks required to develop a next-generation-network, addressing customers’ specific requirements in trunking, peering and residential/enterprise VoIP application solutions. On July 16, 2010, MagicJack took over VocalTec in a reverse takeover.

Exit / Outcome: The company had an IPO on the NASDAQ during 1996. In 1997 Europe’s largest telecommunications company, Deutsche Telekom, bought a 21.1 percent stake in VocalTec for $48.3 million, thereby valuing VocalTec at some $250 million, in addition to purchasing $30 million in telephony products, services, and support over the following two-and-a-half years.

ART Advanced Recognition Technology

Principals of IVP provided early stage private placement funding for ART.

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Principals of IVP provided early stage private placement funding for ART. ScanSoft, Inc. (NASDAQ: SSFT), a global leader of speech and imaging solutions, announced in 2005 that it was acquiring ART Advanced Recognition Technology.

As businesses and consumers increasingly demand reliable and immediate access to content, data and images, today’s mobile devices need to be more accessible and user-friendly for a global population. ART solutions provide state-of-the-art speech recognition technologies that let people use voice-activated controls on their mobile device to set meetings, call people, read emails and retrieve information from enterprise applications.

With the acquisition of ART, ScanSoft expands its portfolio of embedded speech solutions to include a deep set of resources, expertise and relationships with the world’s leading mobile device manufacturers and service providers. ART specializes in applications that create voice-based, conversational interfaces that enable users to dial by voice and manage and access their contacts for mobile devices. The handwriting recognition software for smartphones extends the applications and enables Multimodal activation. The combination of ScanSoft and ART also provides an opportunity to help accelerate the convergence of device and server-based speech applications for the world’s leading telecommunications carriers and device suppliers.

Today, more than 30 manufacturers worldwide have implemented ART solutions in more than 40 million devices around the world, including cellular phones, smart phones, PDAs, and automotive systems. Its current customer portfolio includes many of the leaders in the wireless and device industries, including Analog Devices, Agere Systems, Hitachi, LG Electronics, Intel, Mitsubishi Electric, Motorola, NEC, Panasonic, Qualcomm and Texas Instruments.

Exit / Outcome: ART was sold to Nuance Communications in 2005 for some $27 million in cash.

Galileo Technologies

Craig Marshak, senior Partner of IVP,  advised on an initial equity private placement for Galileo Technologies in 1996; subsequent to that Galileo Technologies was acquired by Marvel, for 25% of the fully diluted share capital of Marvel Technology Group, in a transaction valued at some $2.7 billion.

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Craig Marshak, senior Partner of IVP, advised on an initial equity private placement for Galileo Technologies in 1996; subsequent to that Galileo Technologies was acquired by Marvel, for 25% of the fully diluted share capital of Marvel Technology Group, in a transaction valued at some $2.7 billion. Marvell® Technology Group Ltd. (Marvell) (NASDAQ: MRVL), a technology leader in the development of extreme broadband DSP-based mixed-signal integrated circuits for communications signal processing markets, announced that it has completed the acquisition of Israel-based Galileo Technology Ltd. (Galileo). In connection with the acquisition, Marvell will issue approximately 29.1 million shares of its common stock to Galileo shareholders, which represents approximately 25% of the outstanding shares of Marvell common stock after the merger on a fully diluted basis.

Galileo, a market leader in communications systems on silicon, is one of the semiconductor industry’s fastest growing suppliers of complex, high-performance, integrated circuit devices serving the needs of the LAN, MAN and WAN markets. Galileo is now a wholly-owned subsidiary of Marvell Technology Group Ltd. and will continue operations in Manof, Israel and San Jose, Calif. With Marvell and Galileo’s technology leadership, the combined company is now positioned to provide a complete end-to-end solution for building networked communications systems. The merger also positions Marvell for significantly broader market opportunities in areas such as 10 Gigabit Ethernet, wireless and terabit-class communication solutions.

Exit / Outcome: Following the equity private placement, Galileo Technologies was ultimately sold to Marvell Technology Group in a transaction valued at $55 per share for $2.7 billion. With Marvell today valued at about $5 billion at around $10.00 per share, the 25% stake would be valued at around $1 billion.

Ko Vax

IVP Partner Jack Lahav provided initial equity round financing for Ko Vax

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IVP Partner Jack Lahav provided initial equity round financing for Ko Vax. KoVax Ltd – Specializes in Aqua culture vaccines development and manufacturing

KoVax Ltd.’s objective is to conduct research that facilitates the development of effective vaccines in the Aqua culture world.

The company manufactures and is the patent owner of KV3 vaccine (with marker) against CyHV3 (KHV) for KOI and Common Carp.

KoVax is the only company in the world that produces and markets an efficient and safe vaccine against CyHV3 (KHV ) disease – KV3

Exit / Outcome: The Company has recently signed a major strategic agreement with Novartis, for sales of the Ko Vax vaccine to North American users. The Novartis agreement provides a guaranteed minimum annual royalty and payment level that must be achieved.

Optibase

IVP Partner Craig Marshak arranged pre IPO funding for Optibase, and advised on the listing of Optibase on NASDAQ.

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IVP Partner Craig Marshak arranged pre IPO funding for Optibase, and advised on the listing of Optibase on NASDAQ.  Established in the early 90´s, Optibase was previously engaged in the filed of digital video technologies until the sale of its video solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia (“Vitec”) in July 2010.  Optibase initially had its debut public offering in the USA in  March of  1999, followed by a secondary offering in March 2000 and is traded since on Nasdaq (OBAS).  Today, Optibase invests in the real estate field; it currently holds properties in Switzerland and Miami Florida. The Company is continuously looking for additional real estate investment opportunities.

Exit / Outcome: Optibase presently trades on a $20 mm valuation on Nasdaq.

Telegate

IVP Partner Craig Marshak provided final late round financing for Telegate, prior to its IPO.

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IVP Partner Craig Marshak provided final late round financing for Telegate, prior to its IPO. Telegate was then subsequently sold to Terayon, in a transaction valued at over $100 million, initiated and advised on by Mr. Marshak. In October of 1999, Terayon Communication Systems, Inc. (Nasdaq: TERN) announced a definitive agreement to acquire Telegate Ltd. Terayon, a leading supplier of broadband access systems, plans to acquire Telegate, a privately held company that produces advanced systems for telephony-over-cable. In a separate announcement, Terayon also announced a partnership agreement with ECI Telecom, a Telegate investment and distribution partner.

Telegate’s advanced and highly integrated Multigate telephony and data access platforms are deployed today by leading service providers to deliver efficient carrier-class voice services over cable. Telegate also provides in-home networking capability for telephony and data, based on theDECT (Digital Enhanced Cordless Telephony) standard. Telegate’s systems support voice, high-speed data, and ISDN (Integrated Service Digital Network) services for the business telecommuting market and the SOHO (Small Office/Home Office) market. With its highly complementary customer base, the Telegate acquisition significantly increases Terayon’s market footprint.

Telegate had previously made two private placements, inclusive of  a private placement for $6.5 million to the Japanese investment bank Nomura at a value of $40 million. The company also had previously  issued shares for $11.5 million to an investment group organized by Giza in July.

Exit / Outcome: The sale of Telegate occurred shortly after the private placement was completed, and upon receipt of shares in Terayon, Nomura realized over $40 million in trading profits on the transaction.

AVAFX.com

IVP Partner Jack Lahav provided the initial seed stage funding for AVAFX.com

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IVP Partner Jack Lahav provided the initial seed stage funding for AVAFX.com. the company was launched approximately in the year 2005, by Negev Nosatzki and his partner, who previously had experience in the online gaming sector with Tradal and Empire Poker, (later sold to Party Gaming). AVAFX.com has since emerged as one of the top ten forex brokers globally. This sector has experienced phenomenal growth, having generated numerous billion dollar plus valuation companies, such as FXCM traded on the NYSE, and SAXO BANK, which recently received funding on a pro forma $2 billion market valuation.

Exit / Outcome: Having started as an early seed stage venture, AVAFX.com has gone on to become one of the leading global brands in the rapidly growing online forex trading sector.

Versaware  Technologies

In 1998, IVP Partners organized an investment  of an 11% stake of Versaware Technologies, which develops Internet-based electronic publishing technologies.

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In 1998, IVP Partners organized an investment of an 11% stake of Versaware Technologies, which develops Internet-based electronic publishing technologies. The largest Japanese investment concern invested $8 million in the Israeli company.
The company was founded a year and a half ago by Harry Fox and the Canadian Belzberg family. The company is listed as wholly-owned by US company Versaware, and the technology was developed in Israel. Versaware plans to begin marketing the e-books using an innovative business model.

Under this model, users purchase a subscription to an electronic library on the Internet. Anyone can buy books via the Internet and place them in their electronic library. The books contain links to other types of information such as images, recordings, other books, general information and more. The service’s primary use is in textbooks, saving the need to purchase many expensive books.

In order to implement the model, the company’s 80-member Jerusalem development staff developed a unique technology based on artificial intelligence systems, which imitate human thought patterns. Versaware general manager Avraham Blonder said the system enables automatic insertion of the links into the books, which significantly lowers the cost of the production process.

Exit / Outcome: The company ultimately grew to 1,200 employees worldwide, and was ultimately sold.

Hexagon Technology

Craig Marshak, and Jack Lahav, in 2009 became founding shareholders, and  jointly organized a $1 million investment into a new start up investment vehicle for the purposes of developing the Hexagon Technology brand.

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Craig Marshak, and Jack Lahav, in 2009 became founding shareholders, and  jointly organized a $1 million investment into a new start up investment vehicle for the purposes of developing the Hexagon Technology brand, developing and marketing the Paragonex forex trading software technology under the brand name Hexagon Technology. In a global market dominated by Meta Trader brand software, the designers of the PARAGONEX software technology concluded that a new, easy to use, non download platform for the novice trader was required, with sophisticated back office and CRM technology to manage sophisticated internet marketing techniques. The software model was similar to that developed by other Israeli companies for the online gaming sector, like 888 Holdings and Playtech.

Exit / Outcome: Since its January of 2009 launch, Hexagon Technology has grown strongly from a ten person start up to a 350 person operation in Israel, marketing to retail users in the Middle East, Asia, and Europe, and with satellite offices in Singapore, India, and China. Hexagon Technology has now become one of the top ten global brands in the global retail forex sector.

Buzzilla

In 2011, Jack Lahav became a founding investor with a $1 million investment.

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In 2011, Jack Lahav became a founding investor with a $1 million investment. Buzzilla was established our company in 2008, founded on the recognition that online conversation has a major impact on your organization’s personnel and activities. Our new set of tools enables you to reap the maximum opportunities from this fascinating modern business reality.
Everyone can benefit from online conversation, thanks to Buzzilla’s analysis of the raw data about your organization or company we extract from various social media sites. This is put to use in applications integrated with advanced monitoring and qualitative content research services.

Buzzilla believes…

It’s a simple truth: Insight is at the heart of every successful business idea, whether it’s product development, customer service improvement, branding, advertising campaigns, or anything else that promotes growth.

The Buzzilla approach to acquiring and creating this insight is different. The long questionnaires, two-way mirrors, and in-depth interviews at malls are being left trailing by a new survey method. We listen to what people are saying online, and then organize, analyze, and convert all those facts into valuable, practical information. We then refine and research the data to extract the insights when they are needed, in real time.