American business magnate Warren Buffett has again turned to the Israeli startup marketplace to invest, this time in eVolution Networks, innovator in energy savings solutions for Mobile Network Operators.
eVolution Networks — which raised $22.5 million from Buffett’s Berkshire Hathaway Energy subsidiary IES Holding and GE Ventures – says it will use the funding to expand its worldwide presence and promote its solutions to new industries, such as data center energy management.
“Energy costs are a huge problem for mobile operators,” said Roy Morad, CEO of eVolution Networks. “Operators are constantly forced to expand their network to support the growing data demand from subscribers and the Internet of Things (IOT). However, the way networks are designed today doesn’t allow operators to wisely “right size” their energy use according to live traffic demand. eVolution Networks’ Smart Energy Solution eliminates this problem.”
“This funding will be used to capitalize on this potential, boost the company’s growth worldwide and establish eVolution Networks products and technology as an industry standard,” said Bill Fehrman, president of Berkshire Hathaway Energy subsidiary IES Holding.
eVolution Networks’ Smart Energy Solution is a software-based solution that analyzes the mobile network’s traffic needs and adjusts the use of the network’s resources based on real-time demand from subscribers. This adaptive and unique approach to managing the network’s resources has been deployed by Tier-1 operators such as Telefonica Group and has proven to save millions of dollars annually on energy bills.
“Given that energy costs are the largest portion of operating expenses for telecom operators, a 35 percent reduction in energy usage with Smart Energy Solution will have a significant impact on profitability,” said Jonathan Pulitzer, Senior Director at GE Ventures. “GE Ventures is investing in eVolution Networks because of this potential for savings and the positive impact on global energy consumption.”
This was not the first time Buffett put his faith in an Israeli startup.
In 2013, US-based electronic components distributor TTI – an indirect, wholly owned subsidiary of Buffett’s Berkshire Hathaway — acquired Israel’s Ray-Q Interconnect. In 2006, Berkshire Hathaway’s CTB International acquired a controlling interest in AgroLogic, which develops technology for agriculture. And, the biggest deal of course was Buffet’s $6 billion purchase of blades-maker Iscar (80 percent in 2006 and the remaining 20% in 2013).
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