Or Yehuda-based startup Commagine recently completed a $4 million financing round, securing seed money from Israeli venture capital funds.
committed to investing $2.5 million. The
equity fund, founded in 1999 by Jonathan Leitersdorf, agreed to invest another $1.5 million.
Commagine was established in 2000 by Ayal Katz, Gidi Barak and Ilan Zorman, a team with extensive entrepreneurial and technological expertise attained at a host of companies, including
(Nasdaq:DSPG), Peach Networks,
Working out of corporate headquarters in Palo Alto, California and an R&D facility in Or Yehuda, Commagine is developing a system for the transmission of advanced content by cellular providers. Its system, designed to cover large areas, is based on bluetooth technology and wireless LAN.
Evergreen managing partner Adi Gan said several companies are working on bluetooth technology for local area networks, a technology expected to accelerate over the coming year. He said the unique quality of Commagine's system lies in its ability to link bluetooth-based LANs to wireless networks.
Shalom fund manager Jonathan Leitersdorf said he believes Commagine's solution can solve many of the problems service providers have to face in their efforts to transit to third-generation at reasonable cost.
The Evergreen and Shalom funds have cooperated before. One of their joint seed investments as in eXalink, a startup subsequently acquired by
(Nasdaq:CMVT) for a cool $550 million worth of shares.
Both funds are also invested in
, a startup developing guided navigation solutions for websites.