The long-established information-security company Finjan will invest millions in a new $60 million cyberfund, which will specialize in investments in start-ups dealing with information security and be managed by the International venture capital firm Jerusalem Venture Partners (JVP).
The investment will be part of a new fund launched by JVP, totaling $120 million. It emerges from the documents submitted by JVP to the US Securities and Exchange Commission that half the amount invested in the fund will be dedicated to investments in the cybersector.
Finjan has not released any details regarding the deal. However, industry sources believe that its investment will amount to several dozen million dollars. Finjan is interested in gaining exposure through its investment to the technologies developed by incubator companies, as well as access to the veteran companies of the JVP fund. The fund is expected to invest in various types of cybertechnology — among others, technologies designed to defend against doomsday cyberattacks, information-security technology for mobile devices and technology for cracking criminal cases, designed for use by the police. JVP also holds 40% of the information-security company CyberArk, which is expected to go public in New York next year at an estimated value of $500 million-$600 million.
Finjan is completing a process of transition from an Israeli start-up to a company that invests in start-ups. The company was founded in 1997 by Shlomo Touboul, raised $65 million and was subsequently split up in 2009. Its assets were sold to the British company M86 for millions, while the intellectual property remained in the possession of Finjan. Finjan generates revenue pursuing unlicensed companies violating its patents through litigation. Finjan holds some 20 patents in information security and the lawsuits it filed against various software companies over the last three years resulted in $136 million in licensing revenue. The company has been traded in the New York Stock Exchange since June 2013.
Asked to comment on the report, JVP said that the fund “includes an element that is designed to coordinate cyberinvestments through the fund and the cyberincubator. At this stage, we are barred from disclosing any further details.”