Israel Innovation 2.0

Inside Israeli Technology

Earlier this week, Interlude.fm, an interactive video platform from popular Israeli musician, Yoni Bloch, excited the industry with its presentation (and victory) at the second annual Techonomy conference outside of Tel Aviv. The company’s technology, similar to the “choose-your-own-adventure” stories that were popular in the early 1980s, offers viewers the opportunity to decide the actions of people in the video they are watching. In the sample music video Bloch showed, which was created in one night, there were 29 scenes and over 250 combinations.

Bloch also demoed sample videos of other ways Interlude’s technology could be applied, including to commercials and television shows (think American Idol). He explained that Interlude plans to make money by licensing the technology to the companies behind these and in other areas as well as by revenue sharing partnerships. The partnership opportunities and numerous fields it can enter make Interlude not only one of the most promising startups in Israel this year but also a possible platform from which the future of home entertainment can be based- from its current offerings, such as music videos and commercials, to possible future partnerships with companies, such as MySpace.

The future of home entertainment, which Microsoft is currently trying to shape with Project Natal (using Israel’s PrimeSense motion-sensing technology), is likely to be one in which people will be able to control the movie they are watching, music they are listening to or game that they are playing through hand and body movements and/or one’s voice using gesture-based systems. A partnership between Interlude and another Techonomy presenter, Omek Interactive, an impressive competitor of PrimeSense in motion-sensing technology, can take Microsoft’s idea to a whole new level and offer a true social experience that involves direct interactivity and engagement.

For example, imagine that you are sitting on a couch in a living room with some friends watching television. You and your friends are watching a brand new car on the screen zoom through the streets of a busy city. The color of the car is silver. You say “red” and the color changes. Your friend to your right says “hills”, and the setting, which had been urban, is now rural. Someone else puts his or her hands out as if holding a steering wheel and motions to the right and the car turns. Another friend lifts his foot and slams it and the car stops. Another friend says something and another change happens and so on, this goes on for two minutes. In the end everything is back to the original settings and some fine print appears on the screen and the next thing that appears is the television you were watching. It had been a commercial before.

Such an interactive experience can also be applied to music videos and television shows. In the direction of music videos, as Robert Scoble – one of the judges at the competition – said, Interlude can save MySpace. The floundering social network that has turned its focus to music can implement this technology to further engage its users and keep them coming back and staying on pages longer. According to Bloch, a recent test of the technology found that its interactive elements was able to triple time spent on a page.

Interestingly, the CTO of MySpace, Alex Maghen, was in Israel earlier this week looking for strategic technologies. Whether or not he heard of Bloch or Interlude before, it’s certainly on his radar screen now, and in one form or another will probably be on our television, computer and iPhone screens soon as well.

Yoni Bloch presents Interlude.fm:

Founder and CEO of Omek Interactive presents the company:

Israel’s largest Internet conference, TheMarker COM.vention took place in Rishon Lezion yesterday and offered three tracks: digital marketing, mobile and technology. The technology track included panels on investing in Israel with members of different investment groups and different companies as well as the future of content distribution and what that means for traditional media.

Perhaps the most important session for founders was a presentation by Alex Maghen,the CTO of MySpace, who spoke about the right and wrong ways for small Israeli startups to do business with big companies in the United States and Europe.

Some of the key points he made included:

1. Understand their Business
When meeting with a big company, understand who owns the company, what sensitivities it might have about its competitors and what the benefit of your product or service is for them in specific.

2. Focus – What are we?
Be able to define your startup, including in terms of how its relevant to the big company and to the people you’re presenting it to.

3. Scalability and business maturity
Show them that you are prepared to and understand what it means to work with a big company. Explain your abilities and limitations for scaling honestly and mention key terms that the tech departments at big companies deal with, including data security, auditability, redundancy and disaster recovery among others.

4. Do the work for them
Define the product and integration for them. Offer wireframes and mock-ups, functional phototypes.

5. Friends in high places aren’t everything
Even if you have a friend at a high level, in the end, the tech decisions might come down to someone with a position lower down in the scale who can kill the project if he or she feels threatened. It’s important to have personal relationships with many workers in the company.

Other suggestions Maghen made included to be cautious about what other companies you work with to avoid any issues with the original company, to run your pitch by one of your connections at the company beforehand and to have a lawyer as everything in large companies goes through lawyers.

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During the week of April 25, 2010, Google acquired its first Israeli company, LabPixies, a widget publisher. Better Place started to make inroads in China and Al Gore-backed GreenRoad continued to receive attention abroad. For these stories and more, see this week’s 10 Israel-related headlines below.

Cleantech
1. Better Place makes inroads in China

2. Israel to share agricultural know-how with struggling African farmers

3. Israel’s Al Gore-Funded GreenRoad Seeks to Cut Emissions, Bills

Investment
4. Google acquires Widgets powerhouse Labpixies

5. Sapiens Acquires Harcase, a P&C Insurance Software Provider

Information Technology
6. MiniFrame Introduces New SoftXpand Product Suite to Address Multiple Vertical Markets

7. Clouds helping start-ups grow, but lack enterprise capability, investors say

8. Magic Software Looks to the Clouds

Miscellaneous
9. Israel, U.S. ink open skies pact

10. Israel Blesses iPad Saying, “Let The Tablets Go!”

labpixiesGoogleIsraeli business newspaper, Globes has reported that Google acquired Israeli app publisher LabPixies. The purchase, which is estimated to be at $25 million, is Google’s first in Israel. LabPixies will be integrated into Google’s R&D office in Tel Aviv which focuses on web and mobile development, such as YouTube Annotations and Google Trends, and will focus on iGoogle efforts in the Europe, Africa and the Middle East. The acquisition is expected to also help Android app efforts.

Below is a timeline with some of the major events showing Google’s road to Israel and its acquiring LabPixies.

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During the week of April 18, 2010, Wibiya announced that it raised $2 million for its customizable web-based toolbars. Forbes magazine named Israel’s Shari Arison, founder of Miya, one of the world’s greenest billionaires and Testuff released a Mac version of its test management software. For these stories and more, see this week’s 11 Israel-related headlines below.

Cleantech
1. 10 reasons Israel is a cleantech leader

2. Israeli researchers develop small, lightweight hydrogen storage tech

3. Israel’s greenest billionaire

4. Israel’s TaKaDu Goes After the Other Grid: Water

Investment and Economy
5. ‘The idea was to use the crisis to strengthen the economy’

6. Trade pact with Israel to give foothold in West Asia

7. Wibiya Raises $2 Million For Customizable Web-Based Toolbars

Information Technology
8. Testuff Launches a Mac Version of its On-Demand Test Management Service

9. Trusteer detects new Zeus (Zbot) password stealing Trojan

Miscellaneous
10. TAU professor tips off US over security flaw in e-passports

11. Israel Reverses iPad Ban

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During the week of April 11, 2010, Arava Power announced a major investment plan for 15 Israeli solar fields. Israeli start-ups are still facing a hard time raising funds in Israel and Israeli researchers have developed a way to secure online data using laser technology. For these stories and more, check below for this week’s headlines.

Cleantech
1. Charged Environment

2. Arava Power Will Invest $535 Million in 15 Israeli Solar Fields

Investment
3. Bitesize Friday – Israeli Funding Recap

4. Israel’s Infinity expanding China investment fund

5. Israeli start-ups face funding crunch at home, turn to US and European investors

Information Technology
6. Total security for online data

7. Clarizen Growing SaaS Work, Project Management Channel

8. WeFi for Android Gets Enhanced Maps and Location Support

Miscellaneous
9. Israeli Team Snags Top Robotics Award for Second Consecutive Year

10. Where hi-tech startups meet the economy

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During the week of April 4, 2010, Israeli startup Qlipso announced it bought the assets of video web site Veoh Networks. Israeli biofuel company HCL CleanTech is set to open its U.S. headquarters in North Carolina and Autodesk is looking to expand its R&D operations in Israel. For these stories and more, check out this week’s 10 Israel-related headlines below as well as a video of Qlipso’s presentation at Twiistup 7 this past February.

Cleantech
1. HCL CleanTech, an Israeli biofuel company to open U.S. headquarters in Triangle area

2. Test Driving The Better Place Electric Car

Investments and Economy
3. Our economic success story

4. Start-up Qlipso buys Web video service Veoh

5. US giant Autodesk looks to Israeli R&D

Information Technology
6. Doe Run Shortens Downtime With iSolve Virtual Knowledge Manager

7. 3 promising Israeli Startups to look for on MS ThinkNext 2010

Miscellaneous
8. Israel Aid Pays U.S. Dividends That Exceed Cost: Steve Rothman

9. AOL Finally Finds Someone To Buy ICQ (In Russia Or China)

10. Nouriel Roubini – The Economist Who Foresaw the Global Financial Crisis

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During the week of March 21, 2010, Israeli and U.S. officials discussed the future of water technology. Ness Technologies plans to buy BI company Gilon and Red Bend Software now reaches 680 million mobile devices. For these stories and more, see this week’s 8 Israel-related tech headlines below.

Cleantech
1. The Top Fifty Green Start-ups (Brightsource)

2. U.S. and Israeli officials convene in Washington for water technology forum

Investment and M&A
3. Ness Technologies to Buy Gilon for $17.5M

4. Cryptzone to acquire security software provider (Israel-based ControlGuard)

Information Technology
5. Red Bend Software Now Reaches 680 Million Mobile Devices

6. Phone call emotion analyzer is a winner (w/ Video)

Miscellaneous
7. Tech Companies Play the Franco-Israeli Nexus

8. US MBA students study Israel business 101

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During the week of March 21, 2010, a plan for Eilat to have Israel’s largest wind farm was revealed. LucidLogix raised $8 million to boost game graphics chips and Wanova’s desktop virtualization software was released. For these stories and more, see this week’s 14 Israel-related headlines below.

Cleantech
1. South Korea Looks to Collaborate With Israel on Renewable Energy

2. Experts to discuss Israel’s leadership in water resource management and conservation

3. Eilat to have Israel’s largest wind farm

Investment
4. LucidLogix raises $8M for boosting game graphics chips

5. Mentor Graphics Acquires Valor Computerized Systems, Ltd.

6. S&P affirms Israel’s A rating, outlook stable

Information Technology
7. uTest Finds 908 Bugs In Web And Mobile Apps Of Major U.S. TV Networks

8. Wanova’s desktop virtualization software now available

9. AnyClip Launches: Aggregates and Syndicates Clips from Films

10. Commtouch Goes On Attack With Outbound Spam Protection

Miscellaneous
11. CCTV to cover Israeli towns

12. A first look at the Simpsons’ upcoming visit to Israel

13. Israel Steps Up Efforts to Bring Back Expat Scientists

14. The World’s Oldest Man (lives in Israel)

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During the week of March 7, 2010, SolarEdge was named a Top 10 energy innovator by Fast Company. Digital advertising company Eyeblaster filed for a $115 million IPO and Apple rejected an app for the iPhone that detects radiation from the phone. For these stories and more, see this week’s 10 Israel-related headlines below.

Cleantech
1. Fast names SolarEdge top 10 innovator

2. Investing In Electric Cars

Investment
3. Todacell scores $1 million

4. Battery Ventures raises 1st new fund since ’07

5. Eyeblaster Files for $115 Million IPO

Information Technology
6. Voltaire brings InfiniBand switch to the masses

7. Redbeacon Fine Tunes Service, Goes Social, Continues To Be Awesome

Miscellaneous
8. App Detects iPhone Radiation; Apple Nukes

9. Survey: More women than ever hold managerial posts

10. ‘High-tech managers prefer to work with their army buddies’