OPTICALITY VENTURES LLC
Investing with Vision
Pedhazur founder of Opticality Ventures (OV) and
prior to that, the founder of Verticality Investment
Group (VIG) is a venture capitalist focused on
investments in private technology companies. He is
particularly interested in those involved in the
Internet, finance, e-commerce, business-to-business and
software development that concentrates on programming
tools, development environments, distributed object
systems and programming languages.
Why OV Was Formed
Recognizing the enormous potential in today's dynamically
changing world of technology, Mr. Pedhazur wants to
implement his unique vision of technology and financial
partnership with young companies. OV commits to working
with companies to help them succeed as profitable
stand-alone private or public entities. This means
helping refine business strategies, technology
implementations, market approaches, partner and client
Opticality Ventures puts patient, intelligent
capital to work.
Mr. Pedhazur brings to the table, a varied 20-year
career in technology and finance, working at two of the
largest and most successful Wall Street banking firms.
He formed VIG to pursue his interest as a principal
investor and those principal interests in the VIG
portfolio companies transferred to Opticality
OV Investment Strategy
Investment strategies include finding synergies among
portfolio companies to increase market penetration, to
provide multiple product offerings and to maximize
cross-selling opportunities of compatible products and
services. For Mr. Pedhazur, this continues to be a key
theme, investing in only one company in a defined
space. OV provides expert advice to encourage the success
of each venture.
Companies seek out Opticality Ventures for help in
crafting and implementing their business plans because of
OV's experience in mentoring a wide network of
entrepreneurs, as well as their financial connections.
Even when OV chooses not to commit capital, it adds
insight and value during the evaluation process.
The OV team's unique combination of skills is brought to
bear on the investment opportunities where in addition to
capital investments, they serve as active board members
Hadar Pedhazur, Founder and Principal evaluates the
technology, looking for innovation, practicality and
efficiency. He works with companies to properly staff,
price and deliver products and services as well as to
refine market strategies. He analyzes financial
structures, helps negotiate company valuations, and
assesses management and financial controls.
Mr. Pedhazur has evaluated in excess of three hundred
potential portfolio companies over the past few years. A
number of the consummated deals are highlighted below.
Snitkoff, Director of Marketing and Communications,
joined OV from VIG. She continues to assist the portfolio
companies with their communications. This entails among
other responsibilities, helping to craft marketing
messages, customer contracts, RFPs, technical
documentation and web design.
Jacobus, Vice President - Technology, joined OV from JF
Technology. Mr. Jacobus evaluates prospective
investments, and works closely with the technology staffs
of OV portfolio companies. He brings a wealth of
experience as both an entrepreneur and Vice President of
a major financial institution.
For detailed biographies, please see www.opticality.com/Bios/.
What Distinguishes OV?
OV principals, employees and advisors do much more than
simply infuse capital and then "wait for the
investment to grow". They actively involve
themselves in the strategic decision making processes and
operational details upon which companies succeed - or
fail. OV is determined to contribute to the successes of
the companies in which they invest.
Mr. Pedhazur has spoken at numerous industry
conferences, been interviewed many time by the press as
well as industry analysts, and written articles for
publication in trade papers. He is currently Chairman of
the Board of the first Opticality company, Digital
Creations as well as a director of a number of other
Opticality portfolio companies.
Zope Corporation (www.zope.com) is
a comprehensive business solutions company which makes a
suite of applications that runs on top of their Web
Applications Server platform, Zope (www.zope.org). They offer
cutting edge consulting solutions using their internally
developed products and methodologies to build
high-performance, dynamic, mission-critical web
Mr. Pedhazur's first investment was made in BigCharts,
an Internet-based financial charting service. He
researched, approached the company and established a
relationship with the CEO that led to the subsequent
investment and successful sale of BigCharts to CBS
MarketWatch.com 14 months later.
ARC Systems, Inc. (www.arcsystems.com)
is the leading provider of online, real-time automated
underwriting of mortgages and other credit-based
products. Their flagship services product, LendTech
2000, also known as LT2k, allows lenders to
automate their underwriting decisions using their
internal criteria. The process is completed within 30
seconds, and the result is tailored to the lending
institution as well as to the borrower. ARC Systems
approached Mr. Pedhazur after hearing about his
relationships with other companies in Austin, TX.
XMLSolutions Corporation (www.xmls.com) is the
leading solutions provider for end-to-end commercial
e-commerce integration. XMLSolutions backs its XML
e-commerce software with a superior professional services
team, staffed with top experts in XML, EDI, enterprise
metadata and legacy systems integration. Mr. Pedhazur had
a prior relationship with the CEO and was invited to fund
this exciting company. Mr. Pedhazur was on the board of
Red Oak Software (www.redoaksw.com)
develops and markets a software subsystem that
programmatically automates any HTML or XML web
application and integrates it with Active Software's
Active-Works Integration System. Active Software is
a leading provider of eBusiness Integration software that
helps customers accelerate time-to-market, improve
customer and supply chain interaction while reducing
operational costs. Red Oak Software has entered into a
source code license with SAGA Software and now sells and
supports both Stingray and Mako, former products of Blue
Lobster Software. Mr. Pedhazur has a 10-year relationship
with the CEO and is the original seed investor in Red
Oak. Opticality Ventures led a first round, and
Mr. Pedhazur is on the board of directors.
Zero G Software (www.zerog.com) develops
and markets the leading cross-platform and Java specific
installation software, InstallAnywhere. The company is
extending its core technology to bring a suite of new and
exciting products and services to their customers.
Mr. Pedhazur is on the board of directors.
iClips, Inc. (www.iclips.com)
mission is to create the easiest and most
engaging experience in video communication for their users
and partners. The iClips Web site and iClips Producer
application gives all Web users the tools they need to
start communicating with streaming video today. Whether
adding streaming video to email, personal homepages,
greeting cards or Web communities, iClips provides the
solution Web users have been waiting for. Thanks to
iClips, online auctions, personal, classifieds and other
community sites will never be the same.
is at the forefront of Open Source software, providing
products and services for all popular Operating Systems
including Windows, Linux and Solaris. Our key technology
platforms are Perl, the Internet's most popular
programming language and Python, a user-friendly
scripting language. ActiveState solutions provide
enterprise-wide deployment of Perl, improved programmer
productivity, and seamless integration with other
technologies. We believe in the evolution of core Perl
and Python technologies and are committed to broadening
the appeal of Perl and Python by making available easy to
install packages for popular operating systems.
Javelin Technologies (www.javtech.com)
is the leading provider of financial information protocol
servers for electronic securities trading and is the
front-runner in Financial Information Exchange (FIX)
technology. Known for its innovations in server speed and
reliability, Javelin's electronic trading products
streamline work flow and eliminate the high cost and risk
of developing network links and protocol implementations.
SciComp, Inc. (www.scicomp.com) is
the leader in software synthesis technology for the
Financial Services industry. SciComp turns high level
specifications into source code via a proprietary
software synthesis engine [SciNapse], i.e., "software
that writes software". This allows non-programmers (e.g.,
quantitative analysts, auditors, etc.) to leverage their
professional expertise to produce highly efficient
programs relevant to their businesses. SciComp approached
Mr. Pedhazur, recognizing his unique blend of technology
and industry-specific knowledge.
xSides Corporation (www.xsides.com) is the
only company that actively shares screen space with
Microsoft's Windows-based operating systems. Their
flagship software product, xSides, expands the usable
screen areas on computer monitors out into the overscan
area without interfering with the existing
space. Mr. Pedhazur was asked to evaluate the deal by one
of VIG's investors. During the process, VIG was invited
to participate directly in the round alongside Amerindo
Mr. Pedhazur consistently generates an impressive deal
flow, which includes the current pipeline of multiple deals
at various stages of development, many of which are
proprietary to OV. He has an extensive network of colleagues
and associates, including large financial entities that
bring many compelling opportunities to his attention.
Opticality Ventures combines the strengths of its Founder
with his staff and network in a way that sets it apart from
other venture firms. Deal flow, value creation, partnering
closely with portfolio companies, financial acumen and idea
generation, as well as strong and broad technological
prowess all come together. It is often the case that
Mr. Pedhazur successfully invests less money for a
larger equity stake than other groups offer. This can
only happen when there is a compelling advantage to taking
money from a very specific firm.