Here’s a quirky story: Israeli iPhone app dev house ApParty released an app back in December 2008 called iFog (iTunes link).

The premise being that the user selects a photo which then has a steam effect superimposed upon it. The steam can be wiped away by running a finger over the screen surface. Blowing on the iPhone microphone fogs the screen back up.

Cute. Simple. And lucrative—it was bought 200,000 times for $0.99 a pop.

What site has jumped five spots between August and September to become the 13th most visited site in the US, leapfrogging properties like New York Times and Viacom Digital?

Here are some hints: It’s listed on the NASDAQ. It was founded in Israel and its R&D center is located in Jerusalem. It has raised funding from high-profile angel investors Dr. Yossi Vardi and Ron Conway. Can you name the company?

Israeli TodaCell has raised a $1M round to be used to market the company’s mobile ad inventory optimization solution that analyzes users’ click patterns across ad campaigns that span category verticals and age groups. Through the analysis TodaCell can go back to advertisers and recommend which campaigns will better perform on any of the inventory in its publisher network.

The technology doesn’t offer a ‘hit-the-ground-running’ proposition as it may take a month or two for TodaCell to analyze a publisher’s inventory in order to make ‘intelligent’ recommendations. Sure, a bit of downside, but I’m not aware of learning machine technologies that offer instant results.

It’s well known that casual games are popular among mainstream Web users. However, when you’re a publisher maintaining a community, you want to go beyond engaging each user separately and increase total engagement in bulk by connecting users with each other. Enter multi-player casual games.

Israeli startup Come2Play, which we’ve described as the Ning of social gaming networks, has provided this part of the equation since its founding in mid-2007. It’s now keeping up with the zeitgeist by adding a virtual economy in a box that could prove compelling to community sites.

Is there actual money being made? Indeed there is. Come2Play’s CEO, Alon Barzilay tells me that every 1000 users who visit Come2Play’s token store (via any of its games) generates $45 in revenue, split 50%/50% between publishers and Come2Play, and that is after developers get their 30% share off the top. This mind you is beyond the ad-rev share that extends across the same entities.

At this very moment, at this very villa in the Israeli city of Hertzeliya Pituach, the final preparations are being made for what can be best described as ‘TwitterSense’—a way to automatically filter your Twitter stream so that the most relevant Tweets come out on top. The location in question is the home of my6sense, which currently offers a powerful way to filter news feeds. It is applying its filtering technology to Twitter and by the looks of it you’ll soon be able to follow as many Twitter users as you want and still never miss out on the most important tweets.

It took insistent prodding on my part to get my6sense to spill some of the beans and give me a sneak peak. The good news is that TwitterSense (my term, not theirs) is real and it works. The bad news is that it’ll take a couple of more months to be deployed. And yes, it could greatly improve the way we consume Twitter streams.

The advent of a TwitterSense offering could not be timelier as the onslaught of noise on Twitter has increased dramatically and its manageability has become a real pain point. Even Robert “The Stream Prince” Scoble has had to take dramatic measures, namely, slashing the number of users he follows on Twitter and befriends on Facebook. I, on the other hand, keep the number of people I follow on Twitter in the neighborhood of 150. This number works well for me, but I keep wondering whether I’m missing out on users who could provide insights relevant to my personal and professional interests. That is exactly where TwitterSense would come into play.

When it comes to flight information, or to be more accurate, flight statuses, push notification can be a godsend. Case-in-point, Worldmate Gold (iTunes link), one of the first iPhone travel apps to utilize the new OS 3.0’s push notification capabilities. The downside? It’s $20 (well, $19.99).

If you do much traveling this is one iPhone app you may actually be delighted to pay that $20. Also, there’s also a free version (iTunes link), although that version does not have push, the compelling feature of the app. If you’re quick though, you can grab one of the 40 free copies of the Gold version WorldMate is giving away to TechCrunch readers. Simply email techcrunch@worldmate.com and they’ll contact you if you’ve won.

“I agree on the one condition it’s not going to be a girl power post, ok”? That’s what Gali Ross requested when I asked to profile her for TechCrunch. So this isn’t going to be a ‘girl power’ post, but the fact of the matter is that female entrepreneurs are a rare breed. Let’s all try a mental game together… How many female startup CEO’s can you name off the top of your head? I am embarrassed to say that I have trouble coming up with more than a handful, but I don’t think I am alone.

Here’s what I find strange about all this: I speak to VC’s and private investors regularly, and have never EVER heard anyone comment negatively on deal-flow based on the entrepreneur’s gender. Startups—at least this has been my experience—are weighted on the merits of the product, market and the team, but never on gender. Frankly, I can’t explain why female entrepreneurs are a rare commodity in our industry. (Feel free to enlighten me about the gender bias underpinning the tech industry in comments).

The situation in Israel is not much different. But it should only be the quality that counts… To that end, here are three Israeli female entrepreneurs worth keeping tabs on:

Face.com made a splash when it launched Photo Finder it’s first Facebook app back in March. The app employed some pretty impressive facial recognition that scanned Facebook photo albums to discover untagged photos of users and their friends. Even though it was labeled an ‘Alpha’ release the app worked remarkably well, identifying individuals in photos impaired by bad lighting, low resolution and obstructions such as sunglasses. Since its launch Photo Finder has scanned more than 1.5 billion photos, identifying more than 2.3 million faces—not to shabby at all.

Today Face.com goes a step further by launching another Facebook application called Photo Tagger, which harnesses the company’s core facial recognition technology and gives it a productivity spin: bulk name tagging made easy.

Photo Tagger falls squarely in the ‘time vampire’ category—so don’t say we didn’t warn you. We have 300 invites to give away. Link after the jump.

This morning is the kickoff of TWS2009, an event organized by Israeli financial newspaper Globes, and leading Israeli startup blog, the.co.ils with its founder Yaron Orenstein. TechCrunch, in its continued support of Israeli startups, is proud to be a media partner.

The event is aimed at showcasing ten promising Israeli startups and to serve as a networking platform for the individuals and companies leading Israel’s startup scene. All ten companies were chosen by a world-class panel of judges, ranging from über-Angel investor Ron Conway, to legendary ICQ founder and current founder and CTO of Dotomi, Yair Goldfinger.

Here are the official company descriptions for the ten startups chosen by the judges to present their products on stage in front of over 700 private and institutional investors, executives and entrepreneurs:

Some of you may be growing tired of hearing about companies described as the ‘Kayak of _____’ but if the analogy fits, we might as well abuse it to nausea. So without further ado, I give you DoNanza, the Kayak of online freelance project search. With 70,000 projects on offer, there’s high chance there’s something for you as well so you should consider giving it a whirl if you’re looking to make some extra money on the side in these tough times.

The one thing you have to keep in mind about DoNanza is that it keeps clear of offline gigs, so if you’re looking to for a babysitting job, DoNanza is not for you. It does however have 70K available projects on offer right now, with 30K new projects added each week, or about 4K a day. There are 12 main categories with more than 400 sub-categories. The most active in terms of user-interest are (in the following order): Writing, Web Development, Graphic Design, Virtual Admin. Support, Translation, Marketing, SEO, and Programming.

The granddaddy of all venture capital funds, The granddaddy of all venture capital funds, Bessemer Venture Partners, keeps a tally of the mega-successes it passed on in a list known as the Anti-Portfolio. In it, renowned VC David Cowan is attributed for passing up on eBay:

“Stamps? Coins? Comic books? You’ve GOT to be kidding,” thought Cowan. “No-brainer pass.”

Good news David, lightening may in fact strike twice for you because here’s your chance to invest in Colnect, a community site for collectors of coins, banknotes, stamps, phone cards and bottle caps. And no, I’m NOT kidding at all.

Yahoo’s purchase of FoxyTunes for a rumored $30M legitimized the add-on play as a product strategy for Israeli startups.

I see new startups in this category almost weekly. We’re bearish on add-on plays because the “get them to download, install and use” parts are tricky – and monetizing those users is nearly impossible. In recent months, though, SimilarWeb’s name keeps popping-up and the reason may be the technology it’s spent two years building out. Sequoia Capital Israel, we’ve heard, is spending extra time looking into it and your typical add-on play doesn’t normally make their cut. So what is it about this little company?

my6sense is announcing it has raised $2 million in Series A financing from private investors. The company is pioneering ‘digital intuition‘, artificial intelligence designed to assist everyday users separate the signal from the noise. This is a problem that has grown in magnitudes of severity since the introduction of blogs and RSS into our lives, and compounded even further by the recent rise in popularity of streams (thank you Facebook & Twitter).

In my initial review I tested my6sense’s technology which they chose to apply on an iPhone web app that basically acted like an RSS reader with, well, a sixth sense. The magical part was not only that it worked, it required me to do nothing but consume the content (in my case, blog posts). I didn’t have to rate content-to-interest relevance or assist the application in any way. It took a couple of days to achieve what I described as my “A-Ha Moment”:

Semantic ad technology provider Peer39 is announcing the closing of its Series C round to the tune of $10.5M, pushing the total amount of funding raised to over $22M. The round was led by Israeli VC Evergreen Venture Partners and was joined by the company’s existing investors Canaan Partners, Dawntreader Ventures, Silicon Valley Bank, and JP Morgan.

Since taking an in-depth look at Peer39 nearly a year ago, the company has shifted its focus from developing its own ad network to leveraging its semantic ad platform to transform publishers’ remnant ad inventory into a premium one.

Tickets for our Star Trek screening in Tel-Aviv are now available, get em’ while they’re hot right here.

This Thursday the 21st at 7pm we’re taking over the main screen in the Globus Movie Theater in Azrieli Center for a screening of the new Star Trek flick. There are 320 seats to fill and hopefully you can be one of those joining us.

We’re taking care of the ticket cost, but there will be a $2 charge just to minimize no-shows.

The fundamental shift we are experiencing in how the Web is consumed (streams vs. pages) is also impacting our ability to engage with those we thought were beyond our reach. Consider this anecdote: When I was a teenager there was no chance I would have been able to communicate with a Jordanian monarch, and the closest I got to my favorite rock band—Guns n’ Roses—was getting crushed in the first row of their concerts in Budapest and Vienna.

Seventeen years later I am able not only to reach out to Her Majesty Queen Rania of Jordan, I am also one of the 46 users followed by Duff McKagen (@duff64), Gn’R’s former bass player. What made these things possible was Twitter (of course). The piping for 140-character thought bursts is what today connects an everyday, common Israeli, with the Queen of Jordan and a rock star.

In a recent post we wrote about Her Majesty joining twitter (follow her handle @QueenRania). We followed up with an interview request to find out how she is using Twitter both personally and to help change the world, and she graciously accepted. “Of course, I tweet,” she says. But unlike most of us, she tweets about taking her family to meet the Pope and working to give every child an education.

With our Silicon Valley screening a success, we’re looking ahead to where else we can spread our geekiness. TechCrunch Screenings is heading to Tel Aviv.

On Thursday the 21st at 7pm we’re taking over the main screen in the Globus Movie Theater in Azrieli Center for a screening of the new Star Trek flick. There are 320 seats to fill and hopefully you can be one of those joining us.

We’re taking care of the ticket cost, but there will be a $2 charge just to minimize no-shows. Keep an eye for a follow-up post tomorrow evening Israel time for the sign-up link. Thanks to Jay Yun from Trapster, we’ve got photos of the Screening and Meetup in Silicon Valley after the jump.

Ask your average Israeli venture capitalist to name a few companies they’re keeping tabs on and Fixya usually makes the short list—so do Benchmark’s Conduit and Sequoia’s Kenshoo. If you haven’t heard of Fixya, the concept is real simple: It’s a post-sale tech support site. On the one side you have users who ask product support questions, and on the other are users who respond and help resolve said problems. In short, Fixya has managed to build itself up as a UGC powerhouse and is systematically milking the cow for all she’s worth. And now it’s adding yet another udder to milk—Product Recommendations and with that it’s delving into new territory, that of pre-purchase support. Not blown away are you? Understandable. That’s because you need to step back to appreciate just how big this here cow can grow and why VC’s are enamored with it.

Fixya’s site content now spans a staggering one million products, covering everything from electronics to baby strollers. The site is seeing 15M unique users (mostly English speaking) that generate 60M monthly page views. (ComScore shows half that, with 7.7M uniques visitors a month—see chart). 250,000 questions are asked and answered per month—75% of the answers are rated as ‘good’ or ‘excellent,’ with 50% answered within 5-6 hours of posting. Interestingly, most questions are about usability issues rather than technical ones.

Israeli startup innerActive has been chosen by ICQ to power the service’s offering of free mobile content to its worldwide users, now amounting to 42 million. The content—videos, games and applications—will be subsidized using innerActive’s in-content ad injection technology.

Over the past year and a half, innerActive has been busy carving out a name for itself as a company aggressively pushing its monetization offering to mobile carriers and portals in Europe. The company’s core technology is the ability to dynamically inject advertising into mobile games, applications and video—content which has strong user engagement, but has yet to live up to its revenue generating potential (at least in the amounts players in the mobile industry hope for). The company has strategically chosen to stay clear of any attempt to monetize the mobile Web and focuses specifically on the monetization of content.

Straight out of the “why didn’t they think about this before” department, comes VidPay whose entire premise can be summed up in a single sentence: A white label platform for sponsored video campaigns. There must be more, right? Wrong. VidPay is as dead simple to use as it is to comprehend. One more thing… It started generating revenue from minute one. What more could you ask for in a startup?

To appreciate my gushing enthusiasm over VidPay you must understand that one of the occupational hazards of writing for TechCrunch requires the deciphering of what startups actually do. Increasingly rare are startups like VidPay that offer straightforward value for its customers and have a CEO that knows how to intelligently communicate what the product actually does without overselling it or using tiring hyperbole. So let’s dive in:

The problem VidPay set out to solve is allowing small/mid-sized advertisers to promote their videos on sites such as Metacafe, Dailymotion and Vimeo. These sites usually don’t have dedicated sales teams to support such advertisers because they focus on larger, more budget-laden campaigns.

In a recent post, Sarah Lacy posed the question of whether Israel has lost its mojo. It looks like AOL believes the mojo is still very much somewhere in the Holy Land, as evidenced by its tapping Avichay Nissenbaum as AOL’s first Country Manager for Israel.

Nissenbaum, considered by Israel’s startup community as “one of the good guys” is known for two startup successes:product lifecycle management company SmarTeam which was acquired by Dassault Systemes back in 1999, and most recently, Q&A site Yedda which was acquired by AOL in 2007.

If there is one feature on Facebook which delivers “social utility” magic even to the most average of users, it’s Photos. In fact the feature is so popular that by Facebook’s own account 1 billion photos are uploaded every month—a staggering number that makes it the largest photo site on the Web. However, as with all good things, there are also drawbacks, and in this case discovery is high on the list. While Facebook makes it super easy to discover photos in which you were tagged, there is no chance that every one of those billion photos are tagged each month. And that leaves a big opportunity.

Let me put it another way: How many photos of you are there on Facebook that you’re completely unaware of? Israeli-based Face.com will help you find them with ‘Photo Finder,’ a Facebook app that uses facial recognition to help members locate untagged photos of themselves and their friends. We have 200 special access invites available to TechCrunch readers who will be granted first access to the app, as well as preference on the waiting list. Link after the jump…

If you haven’t heard of Kutiman yet you’re about a week late on the latest music sensation to be incubated on the Web. Ophir Kutiel, aka Kutiman, is an Israeli musician and producer that released a project titled Thru You on the Web seven days ago. It has since garnered over a million views and generated a buzz both on the blogosphere and on Twitter.

The project consists of seven music tracks/videos that are made exclusively from video material found on YouTube. Kutiman spent 3 months in his bedroom splicing and dicing over one hundred videos for samples of singers and instruments—from guitars, pianos, drums and harps, to synthesizers, a bouzouki and even a cash register.

The resulting seven tracks which range in genres—from R&B, Funk and Reggae, to Jungle, Afro and Jazz—are quite impressive. The project as a whole is reminiscent of DJ Shadow’s Endtroducing….., a brilliant and seminal album created completely by the sampling of other albums (hear it here).

Sometimes it’s nothing short of extraordinary to generate some monetization on the Web. Case-in-point, Israeli TicTacTi which employs image recognition to insert ads into casual gaming widgets.

The biggest obstacle in providing In-Game Advertising (IGA) is getting the actual ad into the game. What could be the problem in that you ask? Consider this: The “game” which is typically in Flash SWF format requires distribution by a publisher, which could be anything from an Oberon, to a HeyZap, to an online edition of a newspaper. Each publisher has its own quirks and demands when it comes to monetization—one wants to advertise pre-game, the other post, and the third between levels. And this is where the crux of the problem lies… All these quirks require alternative versions of the game source for the various publishers and advertisers.

Social search engine Delver, which we placed on death watch a month and a half ago has been acquired by Sears in a last minute play right out of left field.

Israeli business media is reporting that as part of the deal, Delver CEO Liad Agmon will move to Chicago where he will hold a title of VP at Sears Holdings. Delver itself will become an R&D center for Sears and will continue to develop its social graph search engine, as well as additional products. It is not clear what Sears wants to do with Delver. Perhaps it will turn it into a social product search engine, or maybe it just likes the idea of buying an Israeli R&D team on the cheap.

The purchase price is unknown but it’s safe to assume it could not be very high considering the company was literally days from being shut down. The bright side of course is that Delver’s remaining 20 employees will not join the unemployed in Israel.