Aviv Venture Capital Leads Additional $5 Million Investment in FriCSo
Company's post-money valuation is approximately $20 million
Tel Aviv, Israel, June 30, 2006. Aviv Venture Capital today announced that it has led a second round of funding, totaling $5 million, for FriCSo - Friction Control Solutions, Inc. Aviv Venture Capital holds about 20 percent of FriCSo, now valued at approximately $20 million.
FriCSo has developed two unique solutions: FriCSo Super-Finishing (FSF) - a mechanical lapping process that uses a unique FriCSo-developed polymer, and Surface Engineering Treatment (SET) - a two-stage process, adapted to the customer's specific application, which combines a surface texturing technique (vibro-grooving) and FriCSo's proprietary polymer lapping. Both solutions significantly reduce friction between moving parts and extend the life of machines, engines, gear systems, bearings and other systems. FriCSo's technology has four major advantages: energy savings, increased power efficiency, maintenance reduction and pollution reduction. FriCSo's technology eliminates the use of non-environment-friendly coating materials, such as chromium and nickel.
"FriCSo’s super-finishing solution is not a coating but delivers coating-like performance at a fraction of the time, cost and maintenance required by traditional solutions," said Kostia Mandel, FriCSo Vice President R&D. "It improves cost-effectiveness of existing super-finishing processes, including the reduction of process time and cost of tools."
"FriCSo's innovative technology has already attracted the interest of leading automotive, engine and machine manufacturers worldwide, and the company has already started joint experiments with 20 leading automotive manufacturers," said Kostia Mandel, FriCSo Vice President R&D. "FriCSo's super-finishing solution is not a coating but delivers coating-like performance at a fraction of the time, cost and maintenance required by traditional solutions."
"FriCSo brings a technological breakthrough to huge markets," said Dr. Amir Guttman, Managing Partner at Aviv Venture Capital and a director at FriCSo. "At first, the company is focusing on the automotive industry, which annually produces approximately 150 million engines. FriCSo's business model is based on technology licensing and selling the consumable polymer. The company expects its first sales in the fourth quarter of 2006."
Environmentally-friendly, the solution does not use hazardous waste materials or produce waste products. No coating is needed.
About FriCSo Ltd.
FriCSo (www.fricso.com) was founded in 2003 by Drs. Boris Shamshidov and Alexander Ignatovsky, two scientists specializing in tribology, the science of friction, lubrication and wear. FriCSo technology creates an organic stable and durable layer that is chemically bonded into the metal surface. This layer attracts lubricants, among others, and prevents direct contact between moving parts, significantly reducing friction, without need for coating. In addition to friction reduction, the innovative technology protects moving parts in extreme tribological conditions that accelerate wear such as poor lubrication, low-to-zero velocity, and rapid directional changes. According to tests conducted at the Technion - Israel Institute of Technology, FriCSo technology provides low friction coefficient and minimal wear rate. The company's headquarters are located in Farmington Hills, MI, near Detroit - the heart of the US automotive industry. The R&D center is located in the Tirat Hacarmel Industrial Zone, Israel. FriCSo employs 20 people.
About Aviv Venture Capital
Aviv is in the process of raising $100 million for Aviv 2 fund. Aviv 1 began its activity in July 2001, and due to its high yield the fund is ranked in the upper quarter of venture capital funds. Aviv Venture Capital invests in Israel-related unique technology companies, and its managing partners are Dr. Amir Guttman and Yoav Z. Chelouche. Aviv 1 has invested in nine companies, the first of which - Actona Technologies - was sold in June 2004 to Cisco Systems for $100 million. The investment in Actona returned approximately one third of the fund capital to Aviv 1 investors. Aviv 1's other companies include Bitband, DeepBreeze, M.G.V.S., MCS Medical (which was recently IPOed on the Tel Aviv Stock Exchange), Columbus, BeInSync and FriCSo.
