Dear members,

Coming back from summer and vacation, we feel energized and very encouraged by many developments in and around the group.

Silicom Ventures membership has grown over 30% since January of this year and among the new members are respectful Venture Capitalists and angel investors with impressive track records.

Following the Netherlands Technology Showcase we have decided to continue assist other countries to bridge them to the high tech community in the Silicon Valley. The next showcase will be with Mexico.

More news, after a long wait for the right timing, Silicom Ventures is proud to announce the launching of its first fund, Silicom Ventures Fund. The fund will operate in parallel to Silicom forum.

I am looking forward to see you at the Sixth Annual Cocktail party on October 19th with former secretary of defense William J. Perry and Ballet San Jose.

Best regards,
Gadi Behar

Exits
Sensant, a portfolio company of Silicom Ventures was acquired by Siemens Medical Solutions Ultrasound Division. Sensant developed MEMS based diagnostic imaging technology for improved 2D and 3D ultrasound imaging. The company received a bridge loan to while it was looking for additional funding in parallel with its acquisition negotiations. The deal provided Silicom Ventures investors 80% ROI on annualized basis (50% over seven months). For more details on Sensant see the press release http://www.sensant.com/PR/pr_16jun05.htm

New Investments

Nusym an EDA company developing symbolic simulator for faster chip verification. The company received $5M from VCs and $500K from angels. Arik Paran was appointed board observer on behalf of Silicom Ventures investors.

Silicom Ventures Fund

After a long wait for the right timing we are very proud to announce the launch of the Silicom Ventures Fund. If you would like more information please contact [email protected]

The Netherlands Showcase 2005

The Netherlands Showcase 2005 was held on August 30th at the Computer History Museum. The event showcased 11 Dutch companies ranging from medical / pharmaceutical to materials and technologies. The companies obtained good contacts with local VCs and potential partners and customers. We had over 300 attendees.

The International Angel Summit

On June 29th, 2006 Silicom Ventures will hold an international angel summit in partnership with international angels forums from across the globe in Tel Aviv, Israel. Stay tuned for more information.

Seminars

A Hacker seminar was held on 9/20 by Sam Gill, a professor of Information Systems at SF State University. As a preventative measure, Sam presented and demonstrate various techniques that hackers use to attack web applications including: SQL injection, cross-site scripting, input tampering, session hijacking, identity spoofing, and information disclosure.

Under Due Deligence

BioLert is a Israeli medical electronics startup company focusing on Epilepsy Alert systems. Shlomo Shaham the CEO presented in the 8/16 event and generated interest from a few members. A termsheet was drafted and is available. If you are interested to learn more please email [email protected]

Kontera a leading online contextual advertising solutions provider, presented in the June event. So far a few members already invested and others are in the process. If you are interested to learn more please email [email protected]

Portfolio Updates

Ponté Solutions™ (formally E-Z-CAD) a portfolio company of Silicom Ventures was ranked among the 6 top EDA companies to watch (the ranking by EE-Times, the premier industry magazine).

Chakshu Research that raised series A from Silicom members a year ago at $5.6M pre money completed a $13.8M Series B financing at a $35M pre money valuation. The lead investor, Leucadia National Corp, a publicly traded company listed on the NYSE is the lead investor has invested $10 million. The new valuation represents a six folds increase in stock price for the series A investors. The company is going through FDA approval for its revolutionary non-invasive (eye drops) treatment for cataract.

Spectros, has achieved the following milestones:
1. FDA and CE shipping clearance received in July 2005
2. Economic studies shows a $2,000 benefit of T-Stat® in vascular surgery
3. Marketing efforts have started, and T-Stat® is shipping at $600,000/annualized in last 4 months
4. Trials for $500 million market in Colon surgery is in progress in the Netherlands
5. Trial for cardiovascular surgery market completed, with results prepared for clinical publication.
6. Second round Series A funding closed.

Previous Presentors

QueueCard closed Series A financing round

Aerielle®, Inc. SanDisk® Corporation Licenses Aerielle® Technology for Sansa™ Digital Music Player FM Transmitter Accessory.

Coastal Hydrogen Energy, Inc. is moving forward with the construction of its dedicated prototype for the production of hydrogen from water using its unique photocatalytic process.

Articles
8 Simple Rules for Dating an Angel by CJ Cornell

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Your feedback is welcome. For articles and any information that might interest the group to be posted in the next newsletter, Please contact: [email protected].
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DISCLAIMER

Silicom Ventures is not a broker nor investment advisor and does not provide investment advice. This newsletter should not be relied on as such nor is it a substitute for investment advice. The information provided in this newsletter is based on sources believed to be reliable and in good faith, it is not guaranteed either as to accuracy or completeness, and independent verification should be sought before making any decisions.