Israel Innovation 2.0

During the past week, Answers.com announced that it was acquired by Summit Partners for $127 million in cash and will be going private. Israel’s Cabinet approved an emergency plan to increase desalinated water production and Geekmedia revealed the creation of an Israeli startup incubation business modeled after Y Combinator. For these stories and more, see this week’s headlines below.

Cleantech
1. Italy’s Solergy Headed by Israeli From the Global Village
“Reared in California by Israeli parents, and married to an Italian wife, Yoav Banin speaks to his two young sons in Hebrew while raising them in Rome. This 38-year-old trilingual Silicon Valley veteran is co-founder and chief executive officer of Solergy, founded in 2007 to create and manufacture advanced concentrated photovoltaic (CPV) technology. Using optics to focus sunlight over 500 times onto special photovoltaic cells, CPV increases solar energy conversion efficiency while reducing the amount of expensive materials that often hamper the practicality of this field…”

2. Cabinet approves 420m cu.m. desalination plan
“The cabinet today approved an emergency plan to increase desalinated water production to 420 million cubic meters in 2013, in order to deal with the water crisis and ensure a reliable supply of water to the population, while protecting natural water sources. The production target is larger than the amount of water drawn annually from the Kinneret…”

Investment
3. Chinese money seeking Israeli technology
“Jay Young, who is currently visiting Israel, is a partner at a Chinese investment firm looking for business opportunities for High Net Worth Individuals…”

4. Q&A Site Answers.com Acquired By AFCV Holdings For $127 Million In Cash
“Q&A platform Answers.com has been acquired by AFCV Holdings, a portfolio company of Summit Partners, for $127 million in cash or $10.50 per share. AFCV will be delisting Answers, which was a public company, from the NASDAQ and taking the company private…”

5. Venturegeeks will incubate startups in Israel
“Geekmedia, the company that operates Israeli technology blog newsgeek.co.il, is getting into the startup incubation business with a new program called Venturegeeks…”

6. Outbrain Buys Surphace From AOL
“Outbrain bought the content recommendation system Surphace from AOL for an undisclosed sum. Surphace is a reincarnation of Sphere, a startup founded by Martin Remy and Steve Nieker in 2006 as a related content plugin and was later acquired by AOL in April 2008 for a rumored sum of $25 million. In October 2009, AOL re-branded the service to Surphace and launched a self served solution for related content called S4. Since launch, the self served solution has attracted over 3,000 publishers and around 1 million page views a day…”

Information Technology
7. Rounds, Steroid Driven Video Chat, Anounces New Features
“The people at Rounds who sired the interactive video chat platform, have reason to be happy. Last August the company launched a Facebook application, that has grown to over 300,000 monthly users. The Rounds Facebook community has joined forces using the photo booth feature to take, no less than, 2 Million chat snapshots since then. Now Rounds have announced their plans for the coming months…”

Miscellaneous
8. Cabinet Approves National Plan to Reduce the Dependence on Oil in Transportation
“The Cabinet today (Sunday), 30.1.11, approved a national plan to develop technologies to reduce the global use of oil in transportation. The Government will invest approximately NIS 1.5 billion over the next decade and will work to raise billions of additional NIS from outside sources…”

9. GE and start-ups: Dancing with elephants
“GE Healthcare has three units responsible for seeking technologies outside the US: in Russia, Japan and Israel…”

Disclosure: The following is partially a recap of Twestival Jerusalem ’09, an event that I helped organize.

In a recent post about Green Any Site, I mentioned that Jerusalem took part in a worldwide effort to raise money for Charity: Water in Africa. The event, a Twestival (short for Twitter festival), raised over NIS 2000 in Jerusalem for Charity: Water, which will use this money and the money raised from the over 200 other Twestivals around the world (over $250,000 USD) to build wells that will provide clean water to villages in Africa and India.

As Israel is a leader in water technology and several of the co-organizers’ organizations, including Jewish Climate Initiative, Green Any Site, PresenTense and GreenProphet are connected to cleantech in some way, Twestival Jerusalem took on an additional component of educating attendees on clean technology and water technology from Israel.

Some Israeli water technology companies that stand out when addressing water needs, in Africa and elsewhere, include Desalitech, AqWise and Netafim. Here is what each company is doing:

Desalitech:  Desalitech has created a reverse osmosis water treatment technology that can lower desalinated water prices to a level that will make water affordable to developed and developing areas. It’s desalination technology offers reductions of up to 50% in the installation costs of desalination plants and in desalination energy consumption as well as a reduction in maintanence and operating expenses. It’s surface and ground water reclamation technology is currently bringing clean water to villages in Africa and abroad.

AqWise: Aqwise is an innovator in developing and implementing wastewater treatment technologies that can be used in municipal, agricultural and industrial wastewater treatement plants. Its AGAR^® Process can be used for both organic carbon and nutrient removal. At the heart of the process are little plastic biomass carriers that filter and treat the water in a similar manner to the way rocks filter water.

Netafim: Netafim has been around since 1965 and is one of Israel’s first innovators in the agriculture sector. Aside from greenhouse and bio-energy solutions, it provides irrigation solutions and products that enable customers to get the most from their crops (both in quality and yields) while using as minimal an amount as possible of valuable resources, such as water.

The week of December 23, 2007, saw American VC fund, Advanced Technology Ventures start to look for cleantech opportunities in Israel showing that investing in cleantech in Israel will continue to grow in 2008, despite predictions that overall funding to Israeli high-tech industries would remain stagnant in 2008. The week also saw Cepco’s Med-O-Card’s competitor, LifeOnKey end the year by raising $5 million, and sales and deals in Asia continue, among other news. For a full overview of the major headlines related to technology in Israel during the past week, check out these headlines and the rest of this week’s 19 Israel-related technology headlines below.

Cleantech
Advanced Technology Ventures looks for cleantech opportunities in Israel

Foreign companies to take part in new Negev solar power plant tender

Israeli nanotech provides green electricity [VIDEO]

The garden city north of Tel Aviv

IDE to build desalination plant in Australia -paper

Israel’s Ofer Shipping Invests $30M in Electric Car Venture

Investments
Israel’s Lifeonkey Closes $10M To Help You Access Medical Records Via Net/Cell

Code testing co TypeMock raises $1.5m

‘Emerging markets hold the key to Israeli VC success’

Stagnant market may mean trouble for local VCs in 2008

Israel-Asia deals
Israeli company Exalenz Bioscience signs distribution agreements in Korea and Hong Kong

Taiwan, Israel to collaborate on Information Technology, Biotech

Miscellaneous
Four Israeli finalists in the “Crunchies”

WorldMate Live’s Mobile and Web 2.0 Travel Technology Garners Honor from BIRD Foundation

Babylon signs international deal with Google

Israel Mobile Operator Picks Ericsson

Israeli billionaire Lev Leviev is emigrating

Corporate social responsibility attracting more attention

Israel in 2007 has 7.2 million residents

Over the past few Fridays, I have been exploring water technology in Israel and giving examples of why this is an emerging field for Israel and Israeli companies. So far, I have briefly explained the origins of this field in Israel and listed some government and VC initiatives that are helping this field emerge. To complement last week’s summary of current investment activities in Israel that will help make Israel known as the leader in water-technology solutions internationally, this week’s edition will detail the technologies that Israel has applied and excelled in over the years.

To begin with, according to the WATEC website, Israel has come to stand out in recent years for having the:

* The world’s largest RO (reverse osmosis) desalination plant
Located in Ashkelon, this plant is internationally recognized as the most advanced in seawater reverse osmosis. A synthetic membrane rejects salt while it passes fresh water at “reasonable flow rates and realistic pressures.” Though this technology has been around since 1959 in the United States, in recent years it has been widely adopted by Middle Eastern countries, with Israel emerging at the forefront with its highly advanced plant that is run by IDE Technologies, Ltd. The plant has attracted attention for producing 100 million m3/year at one of the lowest prices in the world. In doing this, the plant produces around 13% of the country’s domestic consumer demand – equivalent to 5–6% of Israel’s total water needs.

Overall, the plant provides:
* adequate pre-treatment
* a high-pressure pump and an efficient energy recovery system
* a membrane assembly
* post treatment (if necessary)

* The world’s most developed irrigation methods
66% of Israel is considered arid. The lack of water resources in these areas (mainly Southern Israel) has been the main inspiration for farmers to try new, innovative irrigation techniques to make the desert blossom. Probably Israel’s field with the most advancements when it comes to water technology, drip irrigation is the main method used to conserve water while making sure that plants and and farming land get enough water. According to the Israeli Government’s export Website,

“drip irrigation is the most efficient method as regards water saving. Since the drippers emit the water directly to the soil adjacent to the root system, which absorbs the water immediately, evaporation to the air is minimal. This effect is especially important under the conditions prevailing in arid zones.”

Additionally, the Website goes on to explain that unlike other methods, drip irrigation “makes it possible to utilize saline water by eliminating direct contact between the water and the leaves, thus avoiding burns.” It also “allows the use of sewage water because the water is delivered directly to the ground, minimizing health risks.”

While desalination and drip irrigation are more mature water areas with established revenue streams that are growing, Israel’s water industry is also becoming known for having “the world’s highest reused wastewater rate,” and “the world’s most advanced national water management system.” With Israel’s continued focus on becoming the “Silicon Valley” of water technology title, several Israeli companies in these areas are starting to get heightened attention from both the media and investors. Don’t miss next Friday’s entry on which Israeli companies you should watch out for in this field in the next few years.