Israeli venture capital fund

Vertex Management Israel

has led a $16.5m private placement for the fabless

Solidum Systems Corporation

, at a post-money company valuation of $48 million.

Vertex Management Israel placed $3m in Solidum, making it the only Israeli investor in the company. Other shareholders include

Intel Capital

, which also placed $3 million, Altera Corp. (Nasdaq:ALTR), which placed $2 million,

Skypoint Capital

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Business Development Bank of Canada

, and the Formula Growth Fund of the

Formula Systems

(Nasdaq:FORTY) group.

Solidum develops chips for next-generation switches and routers. Its processors are designed to be integrated with ordinary network processors on LAN and WAN networks and with Internet backbone infrastructure.

The chips support the transmission of data at speeds up to 10 gigabytes per second, which means that they can be integrated into the fast Ethernet networks being developed today as well as into the 10 gigabyte Ethernet and optical communication devices that meet the OC192 standard. The main function of the chips is to support the quality control and management of the service.

Solidum President and CEO Richard White says that the proceeds will help the company expand R&D, business contacts with strategic partners, and recruit customers.

This is Solidum's third round of financing. The company was established in 1997 and employs a staff of 75. It maintains offices in Ottawa, Canada and in the US state of California. Vertex Management Israel Vice President Gideon Shichman is to join the company's board.