BRM Capital Raises Latest Fund of $253 Million; Fund to Finance Seed- and Expansion-Stage Infrastructure Companies in Communications and Software Domains.

Business Editors

FORT LEE, N.J.--(BUSINESS WIRE)--July 10, 2001

BRM Capital, a seed- and expansion-stage venture capital firm primarily targeting Israeli-related infrastructure companies, announced it has raised its latest fund with a capitalization of $253 million.

This brings the firm's total assets under management to $350 million. BRM Capital's new fund will be allocated toward investments in infrastructure companies in the communications and software domains.

BRM Capital's investments are typically in the $3-5 million range for seed-stage companies and between $5-10 million for those who have reached expansion-stage. As an active investor, the firm often takes a lead or co-lead position in the round. Additionally, with seven investment team members divided between the US and Israel, BRM Capital can facilitate `technology to market' transitions. To date, 16 BRM Capital portfolio companies have successfully transitioned their front office operations, sales and/or marketing efforts from Israel to the US.

"Our team here knows the market and the strategic players in the US to the same degree that the Israeli team knows the technology and the entrepreneurs from there," said Charlie Federman, managing director in the US. "That combined knowledge forms a great link, or bridge, from Israel to the US, allowing our portfolio companies entry in a world that can be insular. We leverage BRM Capital's network of relationships for our portfolio companies, which affords them opportunities to create partnerships, attain additional funding and meet industry professionals."

Participating in the new fund were institutions and individuals from Asia, Europe and the US. Among the new limited partners are such entities as IBM, NTT Data and Bezeq as well as senior executives from CISCO, Applied Materials and Network Associates.

"We view our new limited partners joining in this latest fund as a vote of confidence in BRM Capital," said Nir Barkat, managing director and one of the founders of the firm. "We have been active in the Israeli market for over ten years assisting entrepreneurs in achieving their goals. We have gained in-depth expertise born from having taken companies from start-up stage to independent, profit-yielding entities."

BRM Capital has already put a portion of the new fund to work by investing in seven companies. These are Eventra, Kamoon, Percite, PeopleLink, Prosight, Schema and Whale

About BRM Capital

BRM Capital (www.brm.com) is a seed- and expansion-stage venture capital firm that invests funds primarily in Israeli-related infrastructure companies in the communications and software domains. With headquarters in the US and an investment office in Israel, BRM Capital is an active investor that leverages its resources and expansive network for the benefit of its portfolio companies. Public portfolio companies include BackWeb (NASDAQ:BWEB), Brio Technologies (NASDAQ:BRIO), Check Point Software Technologies (NASDAQ:CHKP) and CrossWorlds Software Inc. (NASDAQ:CWLD).