Start-up GI View Ltd. has raised $10 million in its third financing round. Israel Healthcare Ventures Ltd. led the round, along with the participation of Delta Ventures and previous private investors in the company.
Founded in late 2003 by CEO Prof. Benad Goldwasser, VP R&D Oz Cabiri, and Yossi Gross, GI View has developed a device for early diagnosis of cancer in the large intestine. Gross and Goldwasser are serial entrepreneurs. Goldwasser is a professor of surgery at Tel Aviv University, and was previously director of the surgical ward at Sheba Medical Center at Tel Hashomer, and co-founded Medinol Ltd. with Kobi and Judith Richter. Goldwasser and the Richters later severed ties following a legal dispute that went to court.
Goldwasser has also been involved in founding of other companies in Israel and the US. Until two years ago, he ran Biomedical Investments, an investment venture of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), Arison Holdings Ltd. and Len Abramson.
Companies founded by Gross include Visionsense Ltd., Medimpulse Ltd. (formerly BioControl Medical, which sold its urology business for $50 million last week), and Transpharma Medical Ltd..
GI View has developed a disposable, miniaturized, self-propelled, self-navigating, endoscope for early diagnosis of precancerous tumors. In contrast to colonoscopes operated by expert doctors, GI View’s device requires no special skill.
Goldwasser said company held the latest financing round because it had received a number of offers from new investors. “We received offers from three leading US venture capital funds to invest $30 million, but our board rejected the offers because they entailed taking the company out of Israel. The current investors in the company decided to invest in the company at a significantly higher company value than for our previous financing round.”
Israel Healthcare Ventures manager Dr. Hadar Ron said, “The company has made good progress, exceeded the targets set for it, and was worth this present high valuation.” Israel Healthcare Ventures led the GI View’s last two financing rounds.
Published by Globes [online], Israel business news - www.globes.co.il - on May 4, 2006
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