ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the March 2009 issue


Microsoft in talks to acquire local startup 3DV Systems

The first Israeli exit of 2009 is hitting the road. Software giant Microsoft is negotiating to acquire the Israeli startup 3DV Systems for about $35 million, despite the alarming condition of the global economy and grim forecasts of more pain to come.

This is no dream exit, however. To date 3DV Systems has raised $38.6 million in financing, according to IVC Online, which means that at least some investors will be losing money.

Speaking of which, the company is owned by Elron, a member of Nochi Dankner's IDB group, the venture capital funds Pitango and Kleiner Perkins Caufield & Byers, and RDC Rafael Development Corporation.

3DV Systems develops "virtual reality" imaging technology for digital cameras that it sells, called ZCams (formerly Z-Sense). Its main targets are the gaming market.



Reprinted from the Israel High-Tech & Investment Report March 2009

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