Israeli startup Speedwise is about to close financing round of $10-12 million. According to Dolev and Abramovitch Hi-Tech Information, Walden Israel will enter the company alongside existing investors Alon Technology Ventures, STI Ventures, Prime Technology Ventures, Docor and Comverse.
Walden general partner Eyal Kaplan told TheMarker it is not clear that Walden will enter Speedwise. "We are currently examining a number of companies and nothing is a done deal with Speedwise."
The company's flagship product, the Speedwise Accelence, accelerates Internet communications by optimizing transmission on both cellular and landline networks without requiring additional software installed by the user.
The current financing round has taken nearly a year. CEO Amit Mattatia told TheMarker a number of months ago that the delay was due to the fact that the company had no urgent need for cash due to revenues from more than twenty clients. It is estimated that, like many startups, Speedwise¿s valuation for the purposes of this investment has been slashed in the past year, and the delay stems from haggling with investors over the exact valuation.
Speedwise's customers include Telecom Italia, Australian Telestra, Orange in both Switzerland and France, Spanish Telefonica Moviles, U.S. company VoiceStream Wireless and Norwegian Telenor Mobil. Revenues in 2001 were $5 million and sources in the company report that it is close to breaking even.
The company's last raised $3 million in January 2001 according to a $40 million post-money value.