Israeli start-up BitBand has completed a $6 million secondary capital raising round, led by the Challenge Fund - Etgar with a $1.25 million investment. BitBand manufactures a video server for IP networks anda management services software package.
Other investors in the round include Fantine Fund, Kardan, and existing investor Sequoia Capital Seed Fund.
BitBand, founded in 1999, raised $4 million in its first round in May 2000 from Sequoia Capital Seed. CEO Ervin Leibovici manages the Tel Aviv-based company, which has 17 employees.
BitBand's solution includes an audio-video server, the Vision On-Demand (VOD), installed at network nodes; the Maestro Content Distribution and Server Management Suite, also installed at the service provider; and the Video Client end user software package, installed within the converter in the customer's home. The company' servers have been commercially installed for a long time at a number of customers around the world, including Fastweb of Italy, a major digital broadband service operator.
Challenge Fund - Etgar VP Yossi Vinitski says, "The combination of an adequate financing round at a reasonable valuation and a company with annual sales in the millions of dollars, which is near to breaking even, fits the Challenge Fund's current investment profile."
Published by Globes [online] - www.globes.co.il - on September 1, 2002