Packet Technologies, which develops security products for mobile Internet, is completing a $6 - 8 million financing round, led by venture capital fund AIG Orion. A leading electronics firm is expected to join the round.
Existing investors Argoquest and IDB are not expected to chip in. IDB invested $2 million in Packet Technologies through investment bank Orama.
In September last year Packet Technologies was poised to complete a $20 million financing round led by Softbank Europe Ventures, with the participation of Bank of Boston and Telecom Italia (NYSE:TI). However, due to the hi-tech crisis and the September 11 terror attacks, Softbank Europe Ventures decided to return $200 million to several European companies that had invested in it, and to withdraw from Europe and Israel.
Packet Technologies, founded in 1998, develops information security products for mobile Internet. Its solution is based on a combination of hardware and software installed in end-products. The solution protects both content and communications.
In January 2000, the company raised $3.5 million from AIG Orion and Argoquest, at a company valuation of $13 million. Orama invested $2 million in the company in 2001.
Packet Technologies is headed by President and CEO Itzik Marchand. Board members include Chairman Eyal Levy, AIG Orion partner, and Dan Gillerman, chairman of the Federation of Israeli Chambers of Commerce, who represents the private investors.
The company has recently laid-off 14 workers, and today employs about 20 workers at its development center in Holon.