Sagitta raises $15 million at post-money $30 million valuation - TheStreet

Sagitta raises $15 million at post-money $30 million valuation

Plans to achieve profitability in 2003
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Sagitta, a developer of process equipment for the fiber optic industry, raised $15.3 million according to a post-money valuation of $30 million. The round was led by Pitango Venture Capital, and included Tamir Fishman Ventures, Ascend Technology Ventures and a leading strategic investor.

Ori Sarfaty, co-president of Sagitta, told TheMarker today the company was planning to raise another $3 million in the round. The company, currently with 46 workers on the payroll, is expected to end 2002 with several million dollars in sales. In 2003 its sales are planned to exceed $10 million, taking it over to profitability.

In August 2000 Tamir Fishman Ventures and JDS Uniphase (Nasdaq:JDSU, TSE:JDU), the world's largest manufacturer of optic fiber system components, led a $4.5 million financing round for the company, held according to a post-money valuation of $26.5 million. Tamir Fishman alone invested $2.25 million in that round.

In the current round, Tamir Fishman and other investors invested $2.3 million in Sagitta, leaving Tamir Fishman with a 15% stake in Sagitta. According to Eldad Tamir, managing partner and Tamir Fishman board member, contrary to a recent Israeli trend toward internal rounds -- fundraising from existing investors alone -- Sagitta's round included three new investors, two Israeli VC funds and one international public company.

The company now employs 41 workers at its Kfar Saba R&D center, and five workers in its overseas offices. It plans to increase its workforce by 20% this year, especially its customer support and marketing departments.