Telefónica looking for a few good Israeli start-ups

Telefónica looking for a few good Israeli start-ups

The Spanish mobile giant has already discovered some good tech here – and now it wants more

Chief Scientist of the Ministry of Economy of Israel, Avi Hasson, (L) and CEO Telefonica I&D Carlos Domingo (Photo credit: Courtesy)
Chief Scientist of the Ministry of Economy of Israel, Avi Hasson, (L) and CEO Telefonica I&D Carlos Domingo (Photo credit: Courtesy)

Already a satisfied customer of Israeli tech, Spanish mobile giant Telefónica is expanding its footprint in the Holy Land – and the Holy City, teaming up with Jerusalem-based VLX Ventures (Van Leer Xenia Ventures) to invest in Israeli start-ups.

Telefónica has had a presence in Israel since 2010 and a team focused primarily on R&D for all of Telefónica’s “future communication” products, the company said. Since then, Telefónica has also intensified its local partnership activity in Israel. In July 2013, Telefónica joined with the Chief Scientist’s office to seek out new opportunities for collaboration with Israeli start-ups.

Telefónica will be looking at investments in companies with tech “reflecting the modern global telecommunications landscape,” the company said, including video, cloud computing, big data, Internet of things, smart homes, and wearable technology.

Telefónica is not new here. The company has already been working on developing wearable technology at its own Israel R&D center. Last year, Telefónica announced that it will work with LG, Samsung and Sony Mobile to integrate its services in the wearables being developed by those companies. That integration, said Gil Cohen, CEO of Telefónica Digital Labs Israel, is based on Telefónica’s Tu Go technology, developed in Israel.

Tu Go allows users to receive or make phone calls on any device using Wi-fi or a GSM cell connection. A Telefónica Tu Go user can choose to answer a call dialed into their regular cellphone number on their smartphone, or on any other smart device. It’s similar to the kind of service users can get with apps like Skype, which can make calls to any device, but only by using Wi-fi, and only via an app. Tu Go integrates any-device-app capabilities into its cell network, allowing users to take advantage of all of Telefónica’s services, and enabling users to answer calls anywhere, regardless of network quality, the company said.

From there, it’s just a small jump to integrating the tech into the smart watches, rings, hats, bracelets, jewelry, and other devices being developed by manufacturers, which will include cell, Bluetooth, and Wi-fi connections. “The Tu Go technology we developed and are continuing to work on here will be a significant part of the wearables that manufacturers are working on,” said Cohen. “With our Tu Go technology, anyone will be able to take their personal phone number with them anywhere, connecting them to the world via a wearable device.”

And that’s just to start, said Doron Shpasser, head of Investments and Partnerships at Telefónica in Israel. “As a digital telco, Telefónica invests in many forward-thinking companies around the globe, and as a country packed full of world-leading talent and innovative companies, Israel is the perfect place for us to increase our investment potential. We are constantly evaluating advanced technologies, and this partnership with VLX Ventures allows us to strengthen potential collaborations with young Israeli technology companies operating in areas that are of interest to Telefonica.”

VLX Ventures, led by Ori Choshen and based in Jerusalem, is considered one of the more successful incubators in Israel. Established in mid-2013, 75% of the companies it invested in have gotten follow-up funding, and established companies that have emerged from the incubator raised more than $130 million.

“Joining forces with Telefónica is strategic for Israeli start-ups and supplies them with the highest level of professional support, funding, and a partnership with a leading strategic global company,” says Ori Choshen, CEO of VLX Ventures, “Our goal is to put together several joint investments every year and to continue to expand our collaboration from year to year. Collaborating with a significant player such as Telefónica provides young companies with the opportunity, from the early development stages, for professional cooperation with a strategic partner that can invest in their promotion and development, and is a potential giant client for the solutions they are developing.”

Join us!
A message from the Editor of Times of Israel
David Horovitz

The Times of Israel covers one of the most complicated, and contentious, parts of the world. Determined to keep readers fully informed and enable them to form and flesh out their own opinions, The Times of Israel has gradually established itself as the leading source of independent and fair-minded journalism on Israel, the region and the Jewish world.

We've achieved this by investing ever-greater resources in our journalism while keeping all of the content on our site free.

Unlike many other news sites, we have not put up a paywall. But we would like to invite readers who can afford to do so, and for whom The Times of Israel has become important, to help support our journalism by joining The Times of Israel Community. Join now and for as little as $6 a month you can both help ensure our ongoing investment in quality journalism, and enjoy special status and benefits as a Times of Israel Community member.

Become a member of The Times of Israel Community
read more: