GE invests in SolarEdge, joining $23m Series B funding round

SolarEdge, a Herzliya, Israel-based start-up developing technology that increases solar power systems’ output by up to 25 percent, announced today that GE unit GE Energy Financial Services has joined a $23 million funding round to support growth in residential and large-scale photovoltaic sites.

SolarEdge’s other investors are US venture capital funds Opus Capital and Walden International, Israeli venture capital funds Genesis Partners and Vertex Venture Capital, and the Singaporean fund JP Capital Asia. Details of each investor’s contribution to the equity financing were not disclosed.

GE Energy Financial Services’ venture capital team has invested in 20 early- and growth-stage energy- and water-related technology companies since January 2006, but this was their first cleantech-related investment in Israel.



“We will use this financing to further promote our solar power harvesting system, which can be embedded in practically all types of solar photovoltaic panels to maximize power generation while dramatically reducing costs,” said Guy Sella, Chairman, CEO and Co-Founder of SolarEdge. “By partnering with GE, we benefit from the company’s proven R&D capabilities, energy technology expertise and deep commercial market reach.”

SolarEdge provides holistic photovoltaic power harvesting and monitoring technology to maximize the energy output and cost efficiency of solar PV units. The company is partnering with industry leaders such as BP Solar and Schott Solar, Isofoton, HaWi Energitechnik, Gehrlicher solar and many others to embed its technology into photovoltaic panels to increase their power output by up to 25 percent and provide monitoring and control services.

“Our investment in SolarEdge reflects our confidence in the company’s ability to thrive in the growing global solar industry,” Alex Urquhart, President and CEO of GE Energy Financial Services, said at the GE venture capital media forum. “SolarEdge is a smart company, with smart technology that fits well with GE’ ecomagination program to help customers meet their environmental challenges. We view this investment as the beginning of a broader collaboration between GE and SolarEdge that could include joint product development and distribution.”

SolarEdge CEO Guy Sella and VP product development Lior Handlesman founded the company in 2006, together with Amir Fishelov, Meir Adest, and Yoav Galin.

The company's roots can be traced to the founding team members' service together in the Israel Defense Forces. Sella commanded the Technology Unit of the IDF's Department of Military Intelligence in 2001-2002 and Fishelov and Handlesman served in management roles in the IDF for close to a decade prior to joining SolarEdge. Meir Adest is a graduate of the prestigious Talpiot program and recipient of the Israel Defense Award (2004) and the Director of Intelligence Innovation Award (2001).

SolarEdge has raised $35 million to date.

Gunther Portfolio recently published a detailed look at SolarEdge and an interiew with CEO Guy Sella.

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Green Economy Conference in Tel Aviv

The annual Green Economy Conference, organized by Ernst & Young, The Marker, and Life and Environment (Chaim ve' Sviva), an umbrella organization incorporating the work of over 80 environmental organizations in Israel, is scheduled to take place in Tel Aviv on November 20th.
The organizers have put together an impressive agenda, which includes presentations from international cleantech leaders like Jeff Renaud (Director, Ecomagination, GE); Neil Auerbach (Managing Partner, Hudson Clean Energy Partners); Michel Goguen (General Partner, Sequoia Capital); Roger Saillant (Former CEO, Plug Power); Justin Adams (Head of Venturing, BP Alternative Energy); Shai Weiss (Managing Partner, Virgin Green Fund); and Nick Parker (Co-Founder and Chairman, Cleantech Group).

Israeli cleantech industry leaders participating in the conference include Glen Schwaber (General Partner, Israel Cleantech Ventures); Astorre Modena (General Partner, Terra Venture Partners); Booky Oren (President & CEO, Miya, Arison Group); Hillel Milo (Managing Partner, AquAgro Fund); and Tamar Naor (Founder, TN Ventures).

If you are in Israel this week, this event is a "can't miss" event.

I recently had a chance to speak with Itay Zetelny, Cleantech Leader for Ernst & Young Israel, about the Green Economy Conference and his take on Israel's cleantech industry.

JS: What are the origins of the Ernst & Young's Cleantech Conference?

IZ: The first CleanTech Conference took place in 2007 as an independent track within the WATEC Convention. The success of the event together with the enthusiastic feedback led Ernst & Young to organize its own event.

JS: What are the goals of the conference? Who should attend?

IZ: The object is to offer Israeli Cleantech entrepreneurs a unique opportunity to present their ventures to leading global investors and create a platform for in-depth discussions regarding possible partnerships and/or investment opportunities. In addition, we are aiming to raise the awareness of the business community as well as of decision makers to the growing importance and value of sustainability considerations in business today, vis-à-vis the climate crisis.The conference will be focusing on the Cleantech sector performance in global financial markets, climate change as a business opportunity, technology trends, project financing, collaboration and multinational companies’ perspective as well as rules and regulations. It is intended for R&D companies, project companies, VCs, investment banks, international technology providers and researchers.

JS: What is Ernst & Young's role in Israel's cleantech industry? What services do you and the Cleantech Advisory Group provide to investors and entrepreneurs?

IZ: Ernst & Young ia a pioneer in offering services to the growing Cleantech industry in Israel. Three years ago the firm has undertaken the task of developing a unique and comprehensive platform for water and energy companies. Today our Cleantech Advisory Group is the largest of its kind in Israel and offers ongoing assistance to entrepreneurs and companies which includes: identifying local and global VCs, management of technological cooperation, project financing, audit services and tax consulting services.

JS: What are the most important (emerging) trends in Israel's cleantech industry?

IZ: Over the first half of 2008 the amount invested in Cleantech companies reached $140 M as opposed to $122M in 2007. These sums do not include two major investments: “Better Place Project” - $200 M in 2007 and “Brightsource” - $115 M in 2008 which involved venture capital funds, PEs and banks. The substantial increase in investment is a result of the VCs' penetration into the market and the growing participation of traditional funds in Cleantech investments. As expected, since the end of 2006, most Israeli VCs have been investing in Cleantech, a trend which is expected to grow in the future.

Additional reasons for increased investments include:

1) Continuous search for technologies and Cleantech companies by Arison, Ofer Brothers, Dankner, Recanati and others

2) Foreign funds which are establishing local operations to ensure continuous exposure to the local industry including: Virgin, Sequoia and Greylock

3) International companies which are establishing local business development activities such as GE and Siemens

4) Israeli private equities which have begun expressing interest in the field and are currently searching for ways to penetrate it

5) Although angels are investing low sums of money in each company the total amount invested is significant

In conclusion, the local Cleantech industry has attracted much attention over the past year. And despite the sub-prime crisis which is affecting all markets, the Cleantech industry will continue to appeal to investors.

Blue I raising funds; company is leading developer of water quality control systems

Sources inform ''Globes'' that Shaked Global Group, the private equity firm of the Shaked family - the controlling shareholders of online gambling company 888 Holdings plc - has acquired the 20% stake of Kibbutz Ramat Rachel in Blue I Technologies Ltd. This is the first investment in cleantech by Shaked Global Group, founded by Ohad Shaked. Blue I CEO Tsur Ben-David and Shaked Global Group CEO Shai Onn were not available for comment.

Kfar Saba-based Blue I develops real-time water quality control systems.

The sources added that Shaked Global Group will also participate in a $6 million funding round that Blue I is now holding from current shareholders. The company expects to close this round by the end of March at a company value of $16-20 million before money. The proceeds will be used to finance the company's newly launched platforms, including a comprehensive municipal network water quality control system. Blue I is reportedly about to install the first system in Barcelona.

After the financing round, Blue I plans to enter into a strategic partnership with large international water quality control systems makers. The company already supplies its systems to General Electric Company and Veolia Environnement SA.

Blue I has raised $7 million to date, including $2.7 million in its previous round in 2006, which was one of Israel's most significant cleantech investments that year. In addition to Shaked Global Group, Ben-David and Tene Investments each own 20% of Blue I, Blue Drink (European and Israeli angels led by Blue I chairman Ronen Melnick) owns 18%, and Docor International Management Ltd. and TN Ventures (a private fund owned by Tamar Naor) jointly own 15%. Company employees, including four in China and two in the US, own the rest.

Blue I's Israeli customers include Central Bottling Co. Ltd. (Coca-Cola Israel), Israel Electric Corporation (IEC), Mekorot National Water Company, and Oil Refineries Ltd. Foreign customers include Nestle, an Italian power station, Bayer, and hospitals in France.

In November 2007 it was reported that Blue I will supply real-time water quality control systems for the 2008 Beijing Olympic Games.

Market sources estimate Blue I's 2007 revenue at several million dollars. Under a strategic plan prepared by Ernst & Young, the company plans to grow by 80% this year and by more than 100% in 2009. Ernst & Young declined to respond to "Globes"' questions.

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