The Israeli high-tech world has been waiting for the next financing round by vision-based Advanced Driver Assistance Systems (ADAS) developer Mobileye Inc. The company has now decided to raise up to $50 million in a round to be led by current investors, mostly Israeli vehicle importers.
Mobileye has raised $100 million since it was founded in 1999. The current round will apparently be its last before an IPO or sale.
Mobileye's ADAS system supply data for applications such as lane departure warning, forward collision warning, headway monitoring, pedestrian detection, high beam assist, traffic sign recognition, and adaptive cruise control.
The company sells ADAS in two markets: after market for existing vehicles; and premarket, to manufacturers, such as BMW AG, Volvo AB (SAX: VOLV), and General Motors Company (NYSE: GM).
"Globes" named the company as one of Israel's most promising start-ups in 2005-06.
Mobileye previous financing round was held in 2006, when Goldman Sachs Group Inc. (NYSE: GS) invested in the company at a value of $600 million. The company value for the present financing round is reportedly $700-800 million.
Mobileye president and CEO Ziv Aviram said that the company was surprised to discover that demand for its products had doubled, despite the economic crisis, because competitors had neglected development of similar products. "We need to boost our R&D efforts, in order to meet the strong demand for our products," he said, in explaining the higher valuation.
Goldman Sachs and Bank Leumi (TASE: LUMI) subsidiary Leumi Partners Ltd. will probably participate in the financing round. Leumi Partners is currently focusing on investment banking, and seeking Israeli institutional investors to join it in the financing round. Bank Leumi said in response, "No decision has been made about a new investment in Mobileye."
Published by Globes [online], Israel business news - www.globes-online.com - on October 21, 2009
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