cVidya Networks, De-Kalo Ben-Yehuda's Client, raised $7 million in its second round of financing
cVidya Networks, a software company that offers revenue and profit maximization services to Internet broadband providers, raised $7 million in its second round of financing.

New investor Carmel Ventures led the round. Returning investors Hyperion Venture Partners and Stage One Ventures also participated.

"It was a very nice up round from our Series A," said Alon Aginsky, president and chief executive of cVidya. The company will use the funds to develop its sales and marketing teams, as well as to expand in Europe and in the Asia Pacific. It will also add new products that the company plans on making available in 2005 and 2006.

cVidya started soliciting interest for its Series B round at the end of January and was originally seeking $4 million. "We also have been approached by VCs in Europe and in the United States that are interested in increasing the round," said Aginsky. The company might get an additional $2 million. It will make a decision on the extension within five weeks, Aginsky said.

The Tel Aviv-based company has raised $4 million to date, including a $3 million Series A round in May 2002 from Stage One Ventures and Hyperion Venture Partners. Aginsky said that the money from the round will last cVidya almost three years, which would put it well into profitability, which it plans on by 2006.

As a result of the round, Amit Frenkel, general partner at Carmel Ventures, will join the board of cVidya, which also includes David Rubner, partner at Hyperion Venture Partners; Yuval Cohen, managing partner at Stage One Ventures; Chaim Mer of C.Mer Group, which invested in cVidya's seed round of financing; and Aginsky, also founder of cVidya.

The company's flagship product, the MoneyMap platform helps financial, engineering and marketing executives to handle revenue leakage.