Or Yehuda-based startup Commagine recently completed a $4 million financing round, securing seed money from Israeli venture capital funds.

Evergreen Canada Israel Investments

committed to investing $2.5 million. The

Shalom

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

DSP Group

(Nasdaq:DSPG), Peach Networks,

Appstream

and others.

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

Comverse Technology

(Nasdaq:CMVT) for a cool $550 million worth of shares.

Both funds are also invested in

Gate42

, a startup developing guided navigation solutions for websites.