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Semiconductors - Friday, October 19, 2007

Goldman Invests $100M In Israel's Driving Tool MobileEye at $500M Valuation

Goldman Sachs is investing $100M in Israeli's MobilEye at a pre-money company valuation of $500M reports Globes. The company confirmed plans for a 2008 IPO.Prior to this deal, MobileEye had raised $50M.

Mobileye's first application is for calculating the speed and distance of a vehicle in front of a car, and alerting the driver when other vehicles are too close. Using an algorithm that analyzes a road’s curvatures, the processor can warn against deviating from a lane.

MobilEye could be used by insurance companies because it takes a continuous image of a journey, and can provide a clear picture of events in the ten seconds preceding a possible accident.

MobilEye has signed two large contracts with GM and BMW. Aviram has predicted that the company would sign contracts with 70% of the world’s vehicle manufacturers within a few years. Mobileye says that it will have $10M in sales this year and that it will become profitable in 2008.

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