February 1, 2016 | Co-working space WeWork has announced the opening of an Israel-based R&D center, led by Ron Gura, former head of eBay’s Innovation Labs in Israel. Gura will bring his knowhow from eBay, as well as his experience serving as an entrepreneur in residence at VC firm Aleph Partners, to develop WeWork Digital, a suite of added-value services for WeWork’s community of creators. Founded in 2010 by Adam Neumann and Miguel McKelvey, WeWork runs 77 sites in 23 cities around the world, including Berlin, London, Boston, New York and San Francisco, providing professionally designed workspace, as well as other services (insurance, consultancy, etc) that startups need in order to scale up. The company has achieved a valuation of $5-10 billion, after raising over $1 billion from institutional investors, including Goldman Sachs, Fidelity, J.P. Morgan and the Harvard Management Company.
News Briefs
WeWork Opens R&D Center In Israel To Develop Digital Services Platform For Its Creators
HeartWare Cancels Valtech Acquisition
January 31, 2016 | HeartWare International has cancelled its $929 million acquisition of Israeli company Valtech, the companies announced. “By stepping away from the acquisition, all of our resources will be dedicated to strengthening our existing business,” HeartWare said in a statement. This cancellation brings the total proceeds from acquisitions of Israeli high-tech companies in 2015 to $8.1 billion, down from the $9.02 billion figure recently reported by IVC Research Center. Valtech develops a number of non-invasive solutions for the treatment of heart conditions. It was founded in 1996 by CEO Yossi Gross and Yiftach Beinart.
Researchers At Ben Gurion University Uncover “Zombie Army” Behind Cyber Attacks
January 29, 2016 | Researchers from Deutsche Telekom Innovation Labs at Ben Gurion University have discovered and traced six botnets by analyzing data collected from past cyber-attacks. Known as a zombie army, a botnet is a network of computers that have been remotely programmed, unbeknownst to their users, to forward transmissions, including spam or viruses, to other computers connected to the internet. Cyberattacks using botnets were largely untraceable until a team led by Profs. Bracha Shapira and Lior Rokach analyzed data captured by a “honeypot” (or decoy) network run by Deutsche Telekom. By analyzing the data, the team built a breakthrough program that identifies the botnet by finding similar attack patterns. Dudu Mimran, CTO of Deutsche Telekom Innovation Labs@BGU said, “In addition to the aforementioned findings, there were other interesting achievements. For example, the ability to identify whether the attack emanated from a real person or from a robot, as well as the ability to predict future attacks. This is the first time such a comprehensive study has been carried out and returned with unique findings.”
Israeli Biomed Startup Applied Immune Technologies Acquired
Jan. 28, 2016 | Israeli biopharmaceutical company Applied Immune Technologies (AIT) has been acquired by Menlo Park-based Adicet Bio for an undisclosed amount. Founded in 2006 by Prof. Yoram Reiter, Head of the Laboratory of Molecular Immunology at the Technion, Israel Institute of Technology and CEO Mira Peled-Kamar, AIT has developed therapeutic molecules for cancer, viral, and autoimmune diseases. The deal was announced last night along with Adicet’s $51 million Series A round, led by OrbiMed with participation from Novartis Venture Fund and Pontifax. “These significant financial resources will allow Adicet to progress its universal immune cell therapy (“uICT”) platform technology and related products and advance AIT’s programs and product pipeline,” said Aya Jakobovits, Ph.D., Founder, President and Chief Executive Officer of Adicet.
$200K Israeli Security Contest Sponsored By US Dept of Defense
January 28, 2016 | The US Department of Defense is sponsoring a $200,000 Israeli startup competition focused on security and counter terrorism technologies, in conjunction with the MIT Enterprise Forum of Israel and the Israeli Ministry of Defense. The contest follows last year’s very successful $100,000 program. This year’s program consists of two tracks, one for Mobile Apps, one for all other relevant technologies (both cyber and physical), each with a $100,000 price. The tracks have different entry deadlines, judging panels, and evaluation processes, but the winners will be announced at the same conference on June 7.
Minerva Labs Wins CYBOX Contest At CyberTech 2016
January 28, 2016 | Israeli cyber security startup Minerva Labs won Glilot Capital Partner’s CYBOX competition, announced yesterday at CyberTech conference. Awarded most innovative cyber defense startup in Israel, Minerva has developed a low footprint endpoint protection platform focusing on preventing targeted attacks without the need to detect them first. Founded in 2014 by Edi Eddy Bobritsky, Erez Breiman and Omri Moyal, Minerva has raised an disclosed amount in their Series A round from StageOne Ventures. Other contestants included Intsights, Deep Instinct, Solebit Labs and Sixgill.
Mapi Pharma Sets For $50M Nasdaq IPO
January 28, 2016 | Israeli biomedical company Mapi Pharma has set terms for a $50 million Nasdaq IPO at a company valuation of $194 million, offering 3.1 million shares at a price range of $15 to $17 under ticker symbol MAPI. The Ness Ziona based company is developing extended-release formulations of existing drugs including Teva’s multiple sclerosis treatment Copaxone. Founded in 2008, Mapi previously filed in 2014 and 2015 for an IPO but postponed its offering but is now going ahead despite the difficult market conditions.
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Advanced Inhalation Therapies Set For $12M NASDAQ IPO
January 28, 2016 | Israeli drug development company Advanced Inhalation Therapies (AIT) has submitted a revised draft prospectus for its imminent IPO on Nasdaq. The company, which develops products for the treatment of respiratory infections, plans to raise $12 million gross ($8.5-9 million net) at a company valuation of $35 million. The company’s shares will be traded on the secondary Nasdaq index under the AIT ticker symbol and will offer 675,000 units at $15 a unit, with each unit consisting of two ordinary shares and three options exercisable at 125% of the price of an ordinary share in the offering. AIT plans to use the proceeds from its IPO to pay for clinical trials of its various products and exercise options for acquiring patents. Founded in 2011 and led by CEO Amir Avniel (former CEO of Rosetta Green), AIT has four products in development, one of which has been granted orphan drug status by the authorities in the US and Europe for the treatment of cystic fibrosis. The company also has products for the treatment of bronchiolitis, pneumonia, and asthma.
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MediWound To Raise $125M In Secondary Offering
January 28, 2016 | Israeli biomedical company MediWound submitted a shelf prospectus for raising up to $125 million in a secondary offering through an issue of shares, options, debt, and/or a combination of the three. Developer of the NexoBrid product for removing eschar, or damaged tissue often from severe burns, MediWound held its Nasdaq IPO in 2014, raising $75 million at $14 per share, compared with the current $7.20 share price. The product has yet to be approved for marketing in the US and the company had net losses of $7.8 million in the fourth quarter of 2015 and $22.1 million for the year, 9% and 17% more, respectively, than its losses in the corresponding periods of 2014. However, sales of NexoBrid have begun in several countries outside the US, generating $267,000 in revenues for Q4-2015, 115% more than in the corresponding quarter in 2014. Most of this growth is attributable to sales in Romania, following the humanitarian aid supplied there by the company. “We made meaningful strides in 2015 in enhancing interest in NexoBrid throughout Europe,” said Mediwound President Gal Cohen, adding that the company had trained over 75% of the burn centers in Europe, and that over half of these burn centers had begun using the product.
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Cyber Security Startup Fireglass Raises $20M In Series A
January 27, 2015 | Israeli cyber security startup Fireglass today announced its $20 million Series A funding round, led by Norwest Venture Partners, Lightspeed Venture Partners, and Singtel Innov8. Serial cyber security entrepreneurs Mickey Boodaei and Rakesh Loonkar, also participated in the round, which will enable the Tel Aviv startup to expand its R&D efforts and build sales, marketing and support teams in North America and Europe. Founded in 2014, by CEO Guy Guzner, formerly of Check Point and CTO Dan Amiga, formerly of Schneider Electric, Fireglass is developing enterprise network security solutions by eliminating web attack surfaces of both users and applications. The company’s products will aim to protect against known and unknown (zero-day) attacks, and also reduce operational overhead by consolidating an existing security solutions. Guzner said in a statement, “We are seeing an outstanding response from deployments at Fortune 500 enterprises looking to boost and consolidate their existing protection measures, and we’re proud to offer a solution that enables businesses to operate both productively and securely.”
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Elbit Unit CYBERBIT Uncovers Sophisticated Malware Used In Bank Theft
January 27, 2016 | Elbit Systems’ cyber security unit CYBERBIT announced yesterday that it uncovered the advanced mechanism behind the Dridex malware, which is said to be responsible for the theft of over $50 million, including $30 million from UK accounts. The unique analysis was revealed by CYBERBIT’s malware research team, by conducting a detailed behavioral analysis of the malware. Because the Dridex malware is able to generate new variants for each attack, it can enter end-points (computers, phones, etc) undetected. Since its appearance in late 2014, Dridex has been one of the most notable malware threats, designed to steal personal banking information and credentials from small and medium-sized organizations.
Israeli Cyber Security Startup imVision Raises $4M
January 27, 2016 | Israeli cyber security startup imVision has completed a $4 million series A financing round with the participation of China’s CE Ventures, Pitango Venture Capital, and other investors. imVision’s product addresses a major cyber security and operational risks in a fast growing telecommunications cloud market by securing mission critical services running over cloud or hybrid environment. The company intends to use the funding to strengthen the company’s Correlative Behavioral Analysis (C-BA) system and to develop the company’s business with worldwide networking providers. imVision founder and CEO Sharon Mantin said, “Telecom operators face a hugely complex and uncertain migration process as they transition from the “walled garden” of traditional physical infrastructure towards a virtualized Telco cloud environment. New network functions delivered as software, new vendors and open ecosystems all add up to new operational risks and security threats. imVision’s NSS solution was designed to support Telecom Operator through this transition path and provide them with an automatic detection and isolation tool to identify and understand anomalies in the new hybrid environment. Based in Ramat Gan, imVision was founded by Mantin, Yossi Barshishat, and Dr. Eli Plotnik.
Memeni Raises $2.5M For Branded, Customized Social Communities
January 26, 2016 | Israeli startup Memeni has raised $2.5 million from angel investors to launch a platform that will enable organizations to start their own branded social communities. Founded in 2012 by CEO Adam Fogel and Chairman Arik Benzino, Memeni provides a site for a brand’s audience to come together and collaborate, and won’t be limited to a ‘like’ or a ‘retweet.’ Memeni’s white-label solution lets brands create deeper and more meaningful engagements that will lead to new customers and higher revenues. The city of Tel Aviv uses Memeni for its Startup City, a hub for entrepreneurs, investors, and multinationals to host discussions, share events, and network. As the audience engages in these topics, the city can better target its communications, and strengthen its brand as a leading startup city.
Hadassah Medical Center Discovers And Treats Rare Genetic Disease
January 26, 2015 | Haaretz reports that doctors at Hadassah Medical Center have discovered a rare genetic disease and succeeded in treating it with immunosuppressive drugs and a stem-cell transplant. The disease, known for the time being as TPP2 deficiency, is a blood disease in which a particular gene deficiency causes the immune system to attack itself, leading to severe side effects and imminent death. It is most common in populations in which close relatives marry each other. A report on the research, which appeared last year in Blood Journal was chosen by the American Society of Hematology as one of the top 10 stories for 2015.
Zuckerman Establishes $100M US-Israel Scientific Collaboration Fund
January 26, 2016 | Media mogul Mortimer Zuckerman is launching a $100 million program to promote scientific collaboration between the United States and Israel. The Zuckerman STEM Leadership Program, announced yesterdat at a New York event that featured Gov. Andrew Cuomo and several Nobel laureates, promises to provide over $100 million in scholarships and related educational activities for participating scholars and universities. The program, which will launch in the 2016-17 academic year, aims to foster collaboration between the “highest-achieving” American post-doctoral researchers and graduate students and “leading researchers” at Hebrew University, the Technion, Tel Aviv University and the Weizmann Institute of Science, according to a statement issued. Zuckerman’s foundation has committed to invest in the program over the next 20 years and plans to ensure the program continues “in perpetuity.” According to Forbes magazine Zuckerman has a net worth of $2.5 billion and through his foundation has supported an array of Jewish, medical and scientific institutions.
