Yazam Finds White Knight; U.S. Technologies Picks It Up
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[JERUSALEM] - The months-long soap opera surrounding struggling investment accelerator Yazam appears to have ended on a happy note.
U.S. Technologies Inc, which funds and manages emerging growth technology companies, will buy Yazam for $22 million in cash and stock.
In addition, Yazam has sold the First Tuesdasy networking franchise back to its franchisees. Many observers credited Yazam's $50 million deal for First Tuesday last year as one of the key elements that caused Yazam to unravel after a high-flying start. Nearly all Yazam employees have gone in the last few months.
U.S. Tech will have interests in 30 technology companies and will gain a foothold in Israel from the deal, as Yazam was founded and headquartered in Jerusalem.
Yazam funds seed-stage Internet and technology startups with its own capital in conjunction with a network of private investors, venture capitalists and strategic partners. Since July 1999, it several thousand seed-stage startups worldwide and financed more than 20 new companies. Some, such as GoldNames, went under and never made it to a second round of funding.
Yazam also attempted to expand globally last year through the opening of offices in the U.S. and Japan, as well as buying high-tech networking franchise First Tuesday. It spent a reported $50 million on the deal.
At presstime, Yazam had not disclosed the price the First Tuesday deal.