This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Venturing Into Israeli Fiber to the Home

Israel has been called a fertile ground for growing tech companies -- a technology hot spot where tech giants seek strategic investments.

Recent data show, however, that the amount of capital raised by Israeli high-tech companies from foreign and local investors in 2005 declined compared with the $1.46 billion raised in 2004. That may be turning around this year.

TheStreet.com spoke to a couple of technology heavy-hitters about their appetite for Israeli-made technology. They claim the long-term trend for investment remains positive.

Intel (INTC - Get Report) is probably the biggest investor in Israeli tech companies. Through its investment arm, Intel Capital, located near Tel Aviv, the chipmaker has made more than 50 investments in Israeli companies since 1997, with roughly 10 exits.

"We are a venture capital fund with a twist," says Shlomo Caine, director of Intel Capital Israel. "We look for equity investments in companies where we can find a strong strategic link to what Intel is doing, on the one hand, and where we see a good financial return on the other hand."

Intel Capital usually takes minority stakes in companies of up to 20%, and aims for technologies and services that will fit into its road map or complement existing products.

"Software applications that run best on our microprocessors would be complementary," Caine says. "We invest in successful companies, but ones that we could also have a mutual relationship with. ... Wisair, for instance, develops a chipset for ultra wide-band communications, in which we invested and helped drive their communication method to become a standard."

Exent, the firm's latest investment, develops online gaming. "We did it because their application is designed to run best on Intel computers, desktops, laptops," Caine says. "We think online gaming is a very big deal."

According to Caine, the next big thing coming from Israel is the pending IPO of Passave (which means wide band in Hebrew).

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
ALVR $0.03 73.33%
SI $0.00 0.00%
INTC $33.45 -0.30%
IKAN $2.16 -2.69%
VZ $49.61 -0.58%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs