RAD Group

The RAD Group was founded by brothers Yehuda (1942–2024) and Zohar (1949–2023) Zisapel, in Tel Aviv, Israel. Both brothers studied electrical engineering at the Technion – Israel Institute of Technology. Yehuda started his career in the 1960s working for Motorola Israel but in 1973 decided to start his own business importing and distributing computer networking equipment, a company called Bitcom. Later Yehuda parted company with his initial business partner and started a new company, Bynet. The company's main business was distributing Codex Corporation products, and the company soon became a market leader in Israel. In 1977 Codex Corporation was acquired by Motorola, but due to its success Bynet maintain the distribution rights for its products; however in 1981 Motorola decided not to renew the distribution agreement with Bynet, and Codex Corporation began to sell in Israel directly.

The experience of losing the distribution rights of Codex made Yehuda realize that his business should never rely on one product line, and in 1981 he asked his brother, Zohar, to join him at Bynet to start working on the development of their products. They started a new company in a corner of the Bynet offices and gave it the name RAD Data Communications, RAD being the acronym of Research And Development.

RAD's first successful product was a miniature (by 1980s standards) computer modem that did not require a separate power source, operating instead by utilizing power flowing over the telephone line. By 1985, RAD's annual revenues reached US$5.5 million. RAD Data Communications is now the largest company in the RAD Group.

In 1985, RAD provided initial funding and support to entrepreneur Benny Hanigal to start LANNET Data Communications, which developed a pioneering Ethernet switch, one of the first to offer Ethernet switching over simple twisted pair telephone cables rather than expensive coaxial cables. In 1991 LANNET had an initial public offering on NASDAQ, but in 1995, as their market was consolidating, it was decided to merge with Madge Networks, in a deal valuing LANNET at $300 million USD.

By the end of 1995, the merged Madge-LANNET had 1,400 employees and achieved revenues of more than $400 million, but throughout 1996-1997 there were disagreements about strategy. Benny Hanigal left the company and joined the Israeli Venture Capital fund Star Ventures. In late 1997 Madge Networks spun off its Ethernet division into a separate subsidiary, once again named LANNET, and then sold it to Lucent Technologies for $117 million in July 1998.

During the 1990s the RAD Group was involved in establishing 12 different technology companies. Some became publicly listed companies on NASDAQ and some were later sold to other companies. The group typically has a similar approach for starting new ventures: a business idea of an entrepreneur (an existing company employee or an outsider) or from the company's management team forms the basis of a start-up. Initial funding is provided by the company together with other venture capital funds. In this way companies such as: RADCOM was established in 1990 and received funding from Star Venture and Pitango Venture Capital funds and Radvision in 1992, which was founded by Ami Amir and Eli Doron and received external funding from Evergreen and Clal venture capital funds, as well as from Siemens.