Modu's reported $100 million round shows allure of Israeli startups

John Shinal · March 24, 2008 · Short URL:

The $100 million reportedly raised by Israel-based handset maker Modu is an example of how non-U.S. firms are now routinely raising big money rounds, thanks to the large amounts of venture capital sloshing around the globe.

Last week it was the U.K. speech-to-text startup SpinVox that raised $100 million.

The company makes a tiny wireless phone module that can perform different functions -- such an MP3 player, camera or cell phone -- depending on what it's plugged in to.

The entrepreneurial climate in Israel is healthy and nurturing startups in a host of tech markets, as VC Cafe founder Eze Vidra told us in this interview.

He offered advice to startups based there who wanted to raise U.S.-based venture money. Modu didn't need much help, thanks to the track record of CEO Dov Moran, who founded m-Systems and sold it to SanDisk for $1.6 billion.  

Still, if the report in the online version of The Globes is right on the $150 million valuation, Modu just gave away a significant chunk of its equity to fund its growth.

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