Glucon, a start-up R&D company, develops devices which provide non-invasive, continuous, accurate, and real-time blood glucose monitoring for clinical and personal use. The Company’s unique Photoacoustics technology enables direct measurement of glucose levels from within blood vessels. Continuous non-invasive glucose monitoring is essential for controlling diabetes and preventing diabetic complications. Glucon’s technology represents a significant improvement over both the commonly used finger stick blood testing system as well as alternative non-blood measuring systems currently under development.

One of the important investors in this round is a leading Japanese distributor of medical devices and health care products.

Ron Nagar, CEO of Glucon, said, “We are pleased with the successful closing of this financing round despite the adverse economic environment. We are grateful to our existing investors for their outstanding support and confidence in the Company and are pleased that we have succeeded in attracting new strategic and financial investors. This new financing will allow us to complete both the development of our device and the clinical trials necessary to receive marketing clearance. Having strategic investors will better position our product to penetrate the global market.”

Allon Reiter, VP, Life Sciences at Giza Venture Capital said, “Glucon’s technology is unique both within Israel and globally. The caliber and combined expertise of the research and R&D team gives Glucon’s technology the edge over competitors as they have created a device which can significantly reduce the inconvenience of testing for those who suffer from diabetes”

Dr Dalia Megiddo, managing partner , InnoMed Ventures , the fund that co founded Glucon said: The “Diabesity” epidemic(Diabetes and Obesity) is currently that largest health problem of the western population and costs the health insurers tens of billions of dollars each year. Glucon is currently considered the greater hope to a convenient solution of the Diabetes problems and we are proud to have been a co founder of this company.”

Amir Gal-Or, Managing Partner at Infinity said: “There are currently about 180 million diabetics worldwide, 16 million of whom live in the US. 20% of all diabetics require glucose monitoring. The market potential in the US alone currently stands at about $4 billion and this is expected to grow over the next few years. Glucon has the potential to cover large parts of this market and it will use some of the capital raised to complete its product development”.

Allon Reiter from Giza and Amir Gal-Or from Infinity will join Dr. Dalia Megiddo as board members of Glucon.

TopNotch Capital, one of Israel’s leading life science investment banking boutiques and Triangle Technologies a leading business development company specializing in the Japanese market, acted as placement agents for this round.

About Giza

Giza Venture Capital was established in 1992 and has three funds totaling $316 million. Giza has invested in 68 early to late-stage companies in the sectors of Communications, IT and Life Sciences, with 21 exits including: Precise (NASDAQ:PRSE, acquired by Veritas), Oridion (SWX:ORIDN), Butterfly (acquired by TI), Telegate (acquired by Terayon), Libit, (acquired by TI), Scorpio (acquired by US Robotics), DSPG (NASDAQ: DSPG), M-Systems (NASDAQ:FLSH), Zoran (NASDAQ:ZRAN), DSPC (acquired by Intel), and X Technologies (acquired by Guidant). Giza is backed by leading international such as GE Equity, NIB Capital, Deutsche Banc Alex Brown, Credit Suisse Asset Management, Bessemer Trust, GIC, Temasek, Bank Hapoalim and Bank Leumi. Giza is headquartered in Tel Aviv with offices in Tel Aviv, London, New York and Singapore.

About Infinity

Infinity manages around $200 million in funds for investment. Infinity was founded in 1997, to continue the activities of the Nitzanim Fund (1993). The principal investors in Infinity are the founders of Nitzanim, the Rind/Butler Group, Clal Industries, GE Asset Management, American investment bank Friedman Billings Ramsey (FBR) and Banque Nationale de Paris of France.

The fund is managed in Israel by Amir Gal-Or, Avishai Silvershatz and Robert Bash with Marshall Butler and Ken Rind heading up the management team in the U.S. To date Infinity has invested in around 40 technology companies including Shopping.com, Shellcase, Galil Medical, Proneuron Biotechnologies, Orsus, Aprion Digital, Native Networks, VisionCare Opthalmic Technologies and BrainsGate.

At the beginning of 2003, Infinity took over the private venture holdings of the Clal Industries Group. The new portfolio includes around 25 companies out of which the most prominent are Saifun Semiconductors, Identify Software, Cyber-Ark and Cydoor.

About InnoMed - Jerusalem Global Ventures

Headed by Dr Dalia Megiddo, InnoMed is Jerusalem Global Ventures’ life sciences fund. InnoMed focuses on early stage investments in life science companies. Jerusalem Global Ventures is an Israeli venture capital fund that invests in seed and early stage communications, information technology and life sciences companies. JGV has $120 million in capital for investment in exceptional entrepreneurs. JGV’s investors include many of the world’s leading technology companies and financial institutions as well as international executive investors. JGV’s investors include Agilent Technologies, AOL/Time Warner, Bank of America, China Development Industrial Bank, Bausch & Lomb, Comverse, Conexant, Itochu Techno-Science, JDS, Uniphase, Motorola and Telecom Italia Lab.