Press for Conversion! (Issue # 66) February 201250

Partner at VVC in 2002. Before thatshe worked for the Israeli Ministry ofDefense in its Directorate of R&D asAssistant to the Director of Econom-ics, Budget and Control Department.

VVC has had at least two veter-ans of Elisra Electronics, a wholly-own-ed subsidiary of Elbit, which is Israel’slargest war industry. (See pp.28-29.)

Irit Rapaport, Elisra’s Director ofBusiness Development, became aVVC Venture Partner in 2003.Moti Ben-Arie, who managed inter-disciplinary R&D projects at Elisra,and was “an electronic engineer withthe Israeli Navy,” is now a Manag-ing Partner at VVC.

The InvThe InvThe InvThe InvThe InvestmentestmentestmentestmentestmentsssssMany of the high-tech Israeli firms inwhich VVC has invested are suppliersof military and/or intelligence productsand services. Here are a few examples:

AAAAActelis Netwctelis Netwctelis Netwctelis Netwctelis NetworkorkorkorkorksssssBy using this US-Israeli firm’s prod-ucts, “military organizations can imme-diately deploy high-quality, high-band-width broadband links using the exist-ing copper infrastructure” to “supportvoice, data and video applications.” Itsproducts are used on American militarybases in Iraq, Germany and the US, andby Space & Naval Warfare SystemsCommand, KFORCE Kosovo, andNATO’s Supreme HQ Allied PowersEurope. (Actelis was also financed bythe Carlyle Group, see pp.14-15.)

AAAAActimizctimizctimizctimizctimizeeeeeAlthough most of this Israeli firm’s cus-tomers are financial institutions, some“security agencies” also use its technol-ogy. Founded in Israel by army veter-ans, the company says its products are“relevant to homeland security” be-cause they can “identify suspected ter-rorists by searching a graphical data-base such as photos taken by surveil-lance cameras.” Actimize was pur-chased in 2007 by an Israeli mass sur-veillance company, called NICE Sys-tems, which sells its wares to military,police and intelligence agencies. (Seetable, “CPP Investments,” p.53.)

ASOCSASOCSASOCSASOCSASOCSThis Israeli firm says it “has a recordof successfully supporting ...projectsand product ideas” for military use.George Gilder, an ASOCS investor,says the firm “has pioneered software-defined radio as a battlefield basebandtechnology for the RF [radio frequency]jungles of electronic warfare and jam-ming radar.” When he invested a mil-lion dollars in ASOCS, Gilad Garon,the firm’s cofounder/CEO describedthe “investment and endorsement byGeorge Gilder as one of the most sig-nificant milestones in ASOCS history.”

ASOCS very close associationwith Gilder is worth exploring. Gilder,who chairs the ASOCS AdvisoryBoard, is a techno-utopian, Republicanactivist, who crafted himself as “Ameri-ca’s number-one anti-feminist” in the1970s. Modelling himself after MiltonFriedman and Ayn Rand, this formerspeech writer for Richard Nixon cham-pioned the “moral case” for big busi-ness, and received the White HouseAward for Entrepreneurial Excellencefrom President Reagan.

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With over US$600 million inventure capital, this Israelicompany says it “strives to

be the strategic investor of choice forIsraeli high tech start-up companies.”

The InvThe InvThe InvThe InvThe InvestestestestestorororororsssssMost of the corporations that have cho-sen VVC as the conduit to channel theirinvestments into Israel-based or -linkedhigh-tech industries are from Asia, andparticularly Japan. The Canada Pen-sion Plan holds a total of about $288million worth of shares in several VVCinvestors, or their parents and affiliates.(See table: “CPP Shares in VVC’s TopInvestors, 2011,” p.51.)

The FThe FThe FThe FThe Founder and his Tounder and his Tounder and his Tounder and his Tounder and his TeameameameameamYoram Oron, the founder and Manag-ing Partner of VVC, is intimately tiedto several high-tech, Israeli war indus-tries. In 1984, he cofounded ReshefTechnologies, which is appropriatelynamed for the Canaanite god of war andplague. Reshef says it develops “next-generation innovative fuzes for guidedmissiles, mortars, tanks, artillery androckets” and is a “trusted and qualifiedsupplier to the Israel Defense Ministry...and armed forces across the globe.”

In 1989, Oron co-founded Geo-tek Communications, managed its Mili-tary Division and was its Vice Presi-dent. Between 1992 and 1996, he wasPresident and CEO of Reshef’s parentcompany, Aryt Industries, and is stillon its board of directors. Besides own-ing 90% of Reshef, Aryt owns 100%of Amcoram which makes electronicsand optical systems for military subsand armoured fighting vehicles.

VVC’s management team hasseveral partners linked to Israel’s mili-tary-industrial complex. Oron’s daugh-ter, Yifat Oron, became a Managing

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February 2012 (Issue # 66) Press for Conversion! 51

Praised by Rush Limbaugh as“a true American genius,” Gilder op-

poses evolution andgovernment wel-fare. Although heargues that “NativeAmerican culture”is “corrupt,” “un-successful” and“failed,” and thatAfrican cultures are“destructive,” “aterrible perversion”and “virtual socialsuicide,” he adoresIsrael. Saying that“[a]nti-Semitism isessentially hatred ofcapitalism and ex-cellence,” Gildersees Israel as “a

crucial source of invention, military in-telligence and entrepreneurial creativ-ity that may yet save the West.”

Cyber-Ark SoCyber-Ark SoCyber-Ark SoCyber-Ark SoCyber-Ark SoftwftwftwftwftwararararareeeeeThis Israeli-American “information se-curity company” was created by “lead-ing military security experts,” like AlonCohen who “handled computer secu-rity for Israel’s military.” Cyber-Ark co-founder, President/CEO, Udi Mokady,is “a veteran of a Military Intelligenceunit” in Israel’s armed forces.

Besides serving 35% of the“Fortune 100” companies, Cyber-Arksays its “customer list also includes sev-eral Government and Military organi-zations.” Cyber-Ark has, it says, “be-come the best practice standard bymany federal organizations, militaryand government agencies around theworld.” Its products are said to “se-cure the most valuable assets of someof the largest military...and governmen-tal enterprises in the world.”

Expand NetwExpand NetwExpand NetwExpand NetwExpand NetworkorkorkorkorksssssHaving “deployed its 10,000th unit tothe U.S. government,” this Israeli com-pany is “the leading provider of WAN[Wide Area Network] Optimizationappliances to US military and civilianagencies.” Its products speed up “mili-tary communications networks” and arean “integral part” of the US Joint ForcesCommand’s program to test a “portablecommand and control system…in asimulated war environment.”

CPP sharCPP sharCPP sharCPP sharCPP shares in VVC’es in VVC’es in VVC’es in VVC’es in VVC’s Ts Ts Ts Ts Top Invop Invop Invop Invop Investestestestestorororororsssss, 20, 20, 20, 20, 201111111111Top Investors in VVC Country CPP Investment

(Cdn$)

OrOrOrOrOramir Semiconductamir Semiconductamir Semiconductamir Semiconductamir SemiconductorororororOramir is an Israeli company that de-velops laser-based cleaning technolo-gies used in manufacturing semicon-ductor wafers. Oramir’s early investorsincluded In-Q-Tel, an investment com-pany that the CIA openly admits hav-ing set up in order to fund technologiesdeemed beneficial to US intelligenceagencies. Another early investor wasTexas Instruments. (See table, “CPP In-vestments,” p.53.)

Named after an Israeli soldierwho was killed during the 1984 warwith Lebanon, Oramir was launched in1992 by three corporations that shareda keen interest in producing semicon-ductors for high-tech weapons systems:

Fairchild Corp.: This US military aero-space industry is perhaps best knownfor creating and manufacturing the A-10 “Warthog.” This US attack warplanewas designed around the GAU-8“Avenger” cannon – the heaviest rotarycannon ever mounted on an aircraft.

The Teuza Fund: This company, own-ed by Fairchild and formed in Israel in1992, included such figures as

Retired US General Harold Johnson.As a Commanding General of the USAir Force in the late 1960s, Johnsonpresided over the escalation of theVietnam War. He was also Fairchild’sSenior Vice President.Moshe Arens, Israel’s former Minis-ter of Defense, Minister of Foreign

Affairs, Ambassador to the US wasalso a Vice President of Israel Air-craft Industries. (See “State-ownedIsraeli War Industries,” pp.48-49.)Giora S. Meyuhas the Director of theFirst International Bank, formerlyIsrael’s Economic Minister to NorthAmerica, Director at Israel’s Na-tional Electric Company, and the Is-rael Discount Bank.Dr. Zvi Meiri an. Advisor to Israel’sDefense Minister and Vice Presidentwas awarded two Israel DefensePrizes for developing major weaponsystems for Israel’s military.

Rafael: This company is Israel’s thirdlargest weapons industry. As such it re-quires a steady supply of high-qualitysemiconductors. (See “State-owned Is-raeli War Industries,” pp.48-49.)

Oramir was aquired in 2001 byApplied Materials Inc., a US companywith manufacturing facilities in Israel.It produces “flexible, rechargeable,solid-state, thin-film lithium micro-bat-teries” for military, aerospace and othermarkets.

PPPPPooooowwwwwerDsineerDsineerDsineerDsineerDsineFounded in Israel in 1995, PowerD-sine’s products integrate the transfer of“both power and data over a single net-work cable” and thus eliminate the needto connect computer hardware to elec-trical outlets. PowerDsine says its cus-tomers include military, “homeland se-curity” and other government agencies,

Foreign Equitieswww.cppib.ca/files/PDF/Foreign_PublicEquityHoldings_March312011.pdf

Investorswww.vertexvc.com/investors_israel.html

GeorGeorGeorGeorGeorge Gilderge Gilderge Gilderge Gilderge Gilder, an ASOCS, an ASOCS, an ASOCS, an ASOCS, an ASOCSinvinvinvinvinvestestestestestor and chair oor and chair oor and chair oor and chair oor and chair of itf itf itf itf itsssss

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civilizcivilizcivilizcivilizcivilization, fration, fration, fration, fration, freedom,eedom,eedom,eedom,eedom,mormormormormorality and democrality and democrality and democrality and democrality and democracacacacacyyyyy.....

Israel Discount Capital Marketsand Investments (IDCMI)1 Israel $2,000,000Fujitsu Ltd. Japan $24,000,000Hitachi Inc. Japan $43,000,000Nomura International (NI)2 Japan $100,000,000NTT3 Japan $105,000,000Seiko Instruments, Seiko Electric4 Japan $8,000,000

Total $282,000,000Notes:1. CPP holds shares in the Israel Discount Bank ($2M) which the parent company of IDCMI.2. CPP holds shares in Nomura Holdings ($91M), Nomura Real Estate Office Fund ($6M), and

Nomura Research Institute ($3M). NI is a subsidiary of Nomura Holdings.3. CPP holds shares in NTT Corp ($60M), and its subsidiaries, NTT DoCoMo Inc. ($36M),

NTT Data Corp. ($8M) and NTT Urban Development Corp ($1M)4. CPP holds shares in parent company, Seiko Epson Corp. ($8M)

Sources:

Press for Conversion! (Issue # 66) February 201252

and that its “Power over Ethernet”products are “deployed in the securitymonitoring and surveillance arena.”

The company notes that its“main targets” include US “federalagencies active in...IP [Internet Proto-col] surveillance markets” and high-lights its “ability to offer continuousoperation” of “network video cameras”as a “major attraction” to “surveillancecamera users” in government.

When PowerDsine was ac-quired for US$245 million by a USmilitary-related company called Micro-semi in 2006, Israel’s Globes businesspaper interviewed both companies’ topexecutives. James Peterson, Micro-semi’s CEO, was excited by the “op-portunities for integration between ourpower supply management componentsand existing military technologies in Is-rael.” To this, PowerDsine’s operationsmanager, Igal Rotem, “concurs ea-gerly” saying: “There are companies inboth the fields PowerDsine operates in– analog components and chips for thedefense and aviation industries – whichcan contribute to our activity.”

Rotem, a PowerDsine cofound-er and its former CEO, has specialinsights into the military applicationsof his company’s products because he“served as a Major in an elite R&Dcenter within Israeli Defense Forces In-telligence Corps” (1981-1992). Pow-erDsine’s other co-founder, Ilan Atias,was also “in the IDF IntelligenceCorps,” and “[i]n 1990, he received theIsrael Defense Award from the Presi-dent of the State of Israel.” Also, Pow-erDsine’s Vice President of R&D,David Pincu, “served in the technologyunit of the IDF Intelligence Corps assenior project manager for large com-munications systems” (1981-1986).

PowerDsine cofounders Rotemand Atias are now the top executivesof Microsemi’s Analog Mixed SignalGroup. Microsemi is no stranger toserving the world’s largest weapons in-dustries. As the firm proudly explains,its main market – comprising 35% ofits sales in 2011 – is the “Defense &Security” sector. Microsemi’s top cus-tomers in this sector are six of world’stop ten war contractors: BAE Systems(#2), Northrop Grumman (#3), Boeing(#4), General Dynamics (#5), Raytheon(#6) and L3 Communications (#9).

ReferencesVertex Venture Capitalwww.vertexvc.com

“Vertex Venture Capital`s Yoram Oron ElectedIVA Chairman,” Globes, Jan. 6, 2005www.vertexvc.com/news_inTheNewsShow.asp?id=80&year=2005

Yoram Oronpeople.forbes.com/profile/yoram-oron/84967

Israel Venturewww.spoke.com/info/p7Y6Vtu/IsraelVenture

Moty Ben-Ariewww.vertexvc.com/teamMember.asp?id=253

Irit Rapaport joins Vertex as venture partner, Feb-ruary 26, 2003.www.vertexvc.com/pressShow.asp?id=18&year=2003

Yifat Oronwww.vertexvc.com/teamMember.asp?id=260

Reshef Technologieswww.arytltd.com/index.aspx

“Actimize: Minimizing business risk,” Globes,September 20, 2006.www.globes.co.il/serveen/globes/docview.asp?did=1000134612

Dedicated Networks: Militarywww.actelis.com/solutions/sol-military.php

Actelis’ MetaLIGHT Solution Supports Opera-tional and Tactical Deploymentswww.actelis.com/company/pr/pressarticle.php?article=05_2005-technet.shtml

Defensewww.asocstech.com/Defense.html

Chris Barth, “Gilder Buys into ‘Electronic Battle-ground Pioneer’ ASOCS,” Forbes, Feb. 8, 2011.www.forbes.com/sites/chrisbarth/2011/02/08/gilder-buys-into-electronic-battleground-pioneer-asocs/

George Gilderen.wikipedia.org/wiki/George_Gilder

Company Fact Sheetwww.broadcom.com/company/factsheet.php

Project HuSIMSwww.broadcom.com/docs/general/Project_HuSIMS.pdf

Press Releases Archive and computer engineers,May 6, 2002.www.cyber-ark.com/news-events/pr_20020506.asp

Board of Directorswww.cyber-ark.com/about-cyber-ark-software/board.asp

Clientswww.cyber-ark.com/digital-vault-clients/index.asp

Industries Served, Governmentwww.cyber-ark.com/identity-access-management-solutions/government.asp

Investor’s Business Daily®www.cyber-ark.com/pdf/cbeweb.pdf

SecurIT and Cyber-Ark Partner to Prevent In-sider Threats and Protect Privileged Identities,September 10, 2009.www.cyber-ark.com/news-events/pr_20090914.asp

Enabling Mobile Military Communicationswww.expand.com/Newsletters/newCollateral-registration.aspx?promotion=SAT%20MILITARY

Expand Accelerators are an Integral Part of JointForces Command’s Millennium Challenge 02www.expand.com/news-events/release.aspx?pressID=f9f859f8-e4c7-4286-8aa9-282bf4536fb0

Oramiren.wikipedia.org/wiki/Oramir

Rick E. Yannuzzi, “In-Q-Tel: A New PartnershipBetween the CIA and the Private Sector,” De-fense Intelligence Journal, 2000.https://www.cia.gov/library/publications/additional-publications/in-q-tel/index.html

Historywww.teuza.co.il/history.html

Fairchild launches Oramir, Israel Business To-day, October 2, 1992.www.highbeam.com/doc/1G1-12813651.html

Infinite Power Solutions Raises $34.7 Millionfor Building Thin-Film Battery ManufacturingFacilities, September 6, 2006.www.appliedmaterials.com/sites/default/files/IPS_Raises_34.7M_9-6-06.pdf

“Infinite Power Solutions Raises $20.0M In Se-ries C Financing,” August 17, 2010.www.appliedmaterials.com/news/articles/infinite-power-solutions-raises-200m-series-c-financing

Westcon Group Adds PowerDsine to its GSADealer Program, Strengthening Federal Offer-ing,” August 12, 2003.web.archive.org/web/http://www.powerdsine.com/news/prs/pr_120803_Westcon.html

The Source, January 2003.w w w. p o w e r d s i n e . c o m / N e w s / T h e S o u r c e /NewsLetter04.html

“Microsemi buys PowerDsine for $245m in cashand shares,” Globes, October 24, 2006.www.globes.co.il/serveen/globes/docview.asp?did=1000145258

Shmulik Shelah, “Israel is the first place I'd lookfor an opportunity to expand,” Globes, Jan. 8, 2008.www.globes.co.il/serveen/globes/docview.asp?did=1000296311

Igal Rotemwww.mit-forum.org.il/events/recent-events/273-igal-rotem

Executives Biosweb.archive.org/web/http://www.powerdsine.com/AboutUs/ExecutivesBios.asp

MSCC Corporate Presentationfiles.shareholder.com/downloads/MSCC/1652776736x0x488833/4106276B-9372-457F-890E-23A9FFD80D7F/MSCC_Corporate_Presentation_11-29-11.pdf

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