Teuza to raise $120m

Teuza - A Fairchild Technology Venture raised its original fund 16 years ago.

If Teuza succeeds in raising the new fund, it plans to invest in biotechnology, medical devices, and semiconductor companies.

Earlier this week, Walden Israel announced the failure of its attempt to raise a $125 million fourth fund.

Six months ago, Teuza sold its 40% stake in NESS Neuromuscular Electrical Stimulation Systems Ltd. to Bioness Inc., controlled by Alfred E. Mann, for $75 million. The exit was Teuza's largest since 2000, and the capital gain is expected to finance future investments in its portfolio companies.

Teuza's new fund will also be a public company. Teuza president and CEO Avi Kerbs has said more than once that he planned to raise a follow-on fund, which has not yet materialized.

Teuza is one of Israel's oldest venture capital funds, founded in the early 1990s. Originally known as Inbal, it was set up by government contract to attract foreign investment to Israeli high-tech companies. The historic agreement was designed to protect the investments with government guarantees. Teuza has sold its stakes in three companies, sold part of its holdings in six others, and floated one - Nova Measuring Instruments Ltd. (Nasdaq:NVMI; TASE:NVMI).

Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2008

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