A virtual keyboard was developed by an Israeli company called
VKB in May 2000, just before the global high-tech bust. The
device casts an image of a keyboard onto any available
surface, and using various sensors it detects where the user
presses, coordinating the presses with the image. As the user
drums his fingers, letters are transferred to his
computer.
Almost five years later, the company has an array of
partnerships and the device is making its way into the
European and U.S. markets, thanks in part to revived
investment in the high-tech sector.
Some 428 Israeli high-tech companies received $1.46 billion
from local and foreign venture capital investors in 2004, a
rise of 45 percent from $1.01 billion the previous year, the
Israel Venture Capital Research Center reported. The figures
suggest that Israel's reputation as a point of innovation and
entrepreneurialism has survived.
Israel's population is only about 6 million, but it has
managed to produce more than its share of innovation.
Much of the venture capital has gone to communications,
followed by software, life sciences and medical devices, says
IVC. Mid-stage companies received the bulk, while startup
companies attracted only about 8 percent of the total capital
raised. It is always difficult for small companies with
innovative ideas to raise initial funding.
Another example is Patus which sells Odorscreen, a vanilla-
scented petroleum jelly that is applied beneath the nostrils
to guard against offensive odors. Developed by a scientist at
Israel's Weizmann Institute, it has proved popular with
emergency response teams responsible for collecting body
parts after terrorist attacks. "As a startup, getting funds
was slow," says Ilan Shatz, chief operating officer of
Patus.
Some investor caution can be attributed to the wish not to
get caught again after the heady boom years. But there is
also a bias in favor of the areas in which Israeli companies
have proven success, such as software, and away from other
fields, such as consumer products.
"This is practically the first time that a consumer
electronic product is coming out of Israel," says Jonathan
Curtiss, VKB president, about the virtual keyboard. "It
doesn't really have a track record in producing consumer
items." Curtiss joined the company in 2002 and was recruited
primarily for his marketing skills and experience, which he
gained in his native Britain.
