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.

The company has raised $4 million from a single investor, Carmel Ventures.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.

The company has raised $4 million from a single investor, Carmel Ventures, and was – according to Mordo’s blog post – unable to raise a second round between $6 and $8 million from the firm or other venture capitalists.

Delver came out of stealth mode only a year ago with an interesting approach to search that aimed to uncover and make accessible knowledge and information that is hidden in users’ social graphs across the web. They opened up to the world about 6 months ago, recently announced a promising search deal with Yahoo BOSS, but apparently discovered that scaling search is very cost-intensive, and that there is plenty of competition and virtually no mass appeal when it comes to alternative search engines.

We’ll update this post as soon as we receive official word back from Delver.

Update: I just got off a call with Delver’s co-founder CEO Liad Agmon, who confirmed all of the above. Unless something miraculous happens, Delver goes into the deadpool.

Crunch Network: MobileCrunch Mobile Gadgets and Applications, Delivered Daily.

Here is a round-up of the 6 Israeli companies that presented on stage:

Registered Investment Advisors (RIA’s) typically provide advice to individuals with assets of $500K and above on average. The alternative to individuals with less assets are mutual funds which lack in transparencies (what your money is invested in) and individual attention (you get to talk to customer service reps, not the fund manager). Personalria wants to change all this by bringing the same high-end advice and investment transparency “rich folks” get to “ordinary folks” with much fewer assets to invest, say $10K.

The Personalria platform requires buy-in from both users and RIA’s. Users are required to open a brokerage trading account at Ameritrade or eTrade, for example, in order to use the Personalria service. RIA’s will need to create profiles describing their education, experience, etc.

The big question is whether the company can pull off the chicken-and-the-egg challenge, meaning, getting a critical mass of users and RIA’s that make it worthwhile for each group to join. The judges on the panel also noted the challenges the company will face in customer acquisition and the density of competition, both offline and online such as Cake Financial (a company that launched at last year’s TC40).

AlfaBetic has developed a propriety language translation engine based on statistical machine translation and human QA to translate English to Spanish, French, German and Portuguese.

The service is initially being targeted at bloggers which can provide AlfaBetic an RSS feed that will then be translated and consequently monetized globally. Their engine will do most of the work, but human intervention is used to edit and proof every piece of content. The engine employs domain language templates such as technology, sports and finance. These are improved over time through machine learning and as a result of the human QA.

The company’s planned business model requires it to provide the translated content to portals and then the selling of ads against it. This will be “non-intelligent” targeting, i.e. basic demographics, sponsorship, etc.

Panel judges Om Malik & Tim O’Riley were asked whether they would use the service and indicated they would not use a translation model. Instead they would opt for a full-blown localized operation such as fr.techcrunch.com.

The story of Tweegee begins in Israel where the company is active as Tipo.co.il, a kids community site with 800K monthly uniques (out of a total population of 1.2M kids aged 8-14).

TechCrunch50 marks the company’s launch of its American play—Tweegee.com—a social network aimed at being MySpace for kids aged 8-14. Positioned as a destination site, TweeGee is intended to offer tweens a safe environment to express themselves and interact with others in their age group.

The site offers email with a feature called WordUp, a patent pending application which works in a very similar manner to T9, but attuned to the 8-14 age group with relevant blacklisted words and such. Kids can also use a calendar app, build avatars, play multiplayer games and create their Zones which are websites built on Flash and HTML.

One of the big challenges the company will face is an issue panel judge Ron Conway raised and that is how to get gain a share of the time kids are already spending online in places such as ClubPenguin. Curiously, the company is adamant about not widgetizing its offering.

Next week the company will launch a Russian version called Tvidi.ru , the result of a partnership with Russian Media company RBC which paid $6M for 50% of the license. A Turkish version is in the works.

MytTopia wants to reduce the headaches and costs associated with developing games for mobile phones by allowing developers to write code once and have it immediately ported to all available smartphones and mobile operating systems.

The company’s solution—similar to that of Mo’Minis—is a Rich Content Authoring Environment called RUGS which utilizes a customized Eclipse-based IDE. Developers can use this environment to develop any number of mobile game applications without any platform-specific knowledge such as Symbian, PlamOS, or iPhone SDK. The application designer works independently of the programmer to design the app skin & layout—the code remains the same.

MyTopia claims that a single cross-platform game developed on RUGS required one developer four weeks at a cost of $50K, while it would cost $1M using current development methods.

MyTopia is also running a game destination site called MyTopia Online which was considered a distraction by the panel of judges.

Think of devunity’s collaborative coding platform as Google Docs for code. The key pain point it is trying to solve is providing developers the ability to interact with fellow developers in real time, thereby creating a “healthier” development process which would theoretically reduce dev costs.

devunity’s fully functioning code editor currently supports Python, PHP, ASP, Javascripts, CSS, and HTML. It also sports built-in integrated APIs such as BOSS, Google Apps Engine, Digg, Flickr, Facebook, etc. The code is completely exportable, meaning, devunity does not lock you in to having them host the app.

There’s also no need to worry about versioning issues such as waiting for other developers to check-in code—devunity does all of this in real time. It also allows the developers to create discussions right on top of the code and gain additional visibility by way of a mini feed which is automatically created for each project.

The company is aiming for a two pronged business model approach. The first is a service play where developers would pay for usage based on a subscription model. The second is a white label approach where companies can form their own devunity environment. An interesting example for the latter would be to allow an outside development firm to use devunity in order to work and interact along side an in-house dev team.

plaYce believes there’s a gap between high-end and casual games, where the former is expensive and might not give you the bang for your buck you expect, and the latter being free but flat in game graphic quality.

plaYce is attempting to bridge this gap through a propriety graphics rendering technology that requires no-download yet still delivers high graphics quality and fast frame rate, right within the browser. While still restricted to IE—it requires a DirectX plugin—the company claims the technology will be applicable on other browsers and is optimized for low-end computers. It is also able to recreate dense scenarios streamed over slow web connections.

The company has no intent to develop the games itself, rather it sees itself as both platform and publisher. It intends to lure independent game developers by offering them what it calls “Game Infrastructure as a Service” which would include everything from the game infrastructure to user acquisition.

The major challenge for plaYce will be to find 2-3 killer games that will bring the critical mass of users necessary to attract game developers to the platform.

For more information on plaYce, see John Biggs’ post, here.

DemoPit Companies:

Founded by Nir Ofir, a co-founder at BlogTV, iamnews is taking a crowed-sourced approach to the newsroom. Once news tasks are created, reporters from around can contribute into them. This can include pure textual content, photos and videos. The platform handles the entire process, from task creation to management of the contributions. With the newspaper business continuing to struggle, a solution such as iamnews can help them deliver quicker news more cheaply. (Iamnews was voted the best DemoPit company, and became the last TC50 finalist to present onstage).

ConTrust provides a real-time UGC moderation platform able to identify content threats including profanity, pornography, racism and brand abuse. It is then able to block these threats according to a set of pre-defined customized levels. The company also claims their platform protects against traditional security threats such as spam, phishing, and malware.

Joongel considers itself a platform for the creation of web-based toolbars. These are toolbar “strips” in the header area of a web page that require neither download nor installation. Site publishers can use Joongel to offer a search engine aggregator or a vertical search engine for travel, video, cooking, etc. The motivation for publishers is mainly through monetization via affiliation and ad rev-share.

Update: A prominent angel investor walking the TC50 DemoPit has expressed interest in investing in the company.

Exhibitor Companies:

2Pad is a web service that integrates with your email service—currently limited to Windows Live, AOL, Gmail, MobileME and IMAP service providers—in order to mine it for pictures and videos. 2Pad then automatically tags them with the email’s subject, sender, recipient—all of which are then available as filters. The service is very similar to xoopit with the major difference being that 2Pad does not require an installation.

Delver has developed a search engine designed to uncover knowledge and information that exists in users’ social graphs. Delver is packaging themselves as both a destination site and a white label solution for intra social network search.

Payoneer provides a payment solution for web-business that utilizes MasterCard debit cards to facilitate the actual payment at the end point. While similar in concept to PayPal, Payoneer sees itself more of a complement than competition in the sense that it can bring its expertise in international payments into the PayPal ecosystem—an area PayPal is generally considered as lacking.

The company recently closed an $8M Series B round from Greylock and Carmel Ventures.

Wix offers a webtop publishing platform for the creation of Flash-based websites, social network profiles, comments and more. (Disclosure: I advised the company in the past).

Crunch Network: CrunchBase the free database of technology companies, people, and investors

The objective behind Delver is to uncover and make accessible knowledge and information that is hidden in users’ social graphs—an area that Google’s Marissa Mayer has indicated to be an essential part of Google’s future search offerings.

Delver begins by mapping direct and implicit connections. For example, Delver would discover that Mark Hendrickson, Jason Kincaid and I are all related to each other through TechCrunch. In Mark’s case it would be due to a direct connection with me on Facebook. In Jason’s case it would be an implicit connection because he wrote in his LinkedIn profile that he works for TechCrunch.

Once these connections are mapped, Delver lets users leverage their social graph to perform web searches. The results themselves are ranked based on their social relevance. A breadcrumb indicates the results’ origin in respect to the users’ social graph—using the example above: Me >> Mark Hendrickson >> Jason Kincaid.

This Alpha launch marks the first time Delver’s search engine has been available to the public. It’s a brave move by Delver because the product is far from perfect. So in order to set the appropriate level of expectations, take the following into consideration if you take it out for a spin:

First, there are users who will find limited results because their personal social graphs are incomplete. Delver still has a lot of social graph crawling and parsing to do. That said, the Alpha launch encompasses the profiles of 40 million MySpace users, 30 million Hi5 users, 2.5 million Facebook users, 1.5 million Blogger users, 3 million Flickr users and 300,000 Digg users.

Second, if you’re expecting a streamlined user experience à la Google, then prepare yourself for a serious feature over-kill. Liad Agmon, Delver’s CEO, explained to me that the reason for this is the fact that aside from a destination play, Delver is also packaging itself as a white label social graph search engine. The excess in features are options that social networks could theoretically pick-and-choose from in order to customize Delvers’ engine for integration.

Delver took upon itself an ambitious challenge and it’s still too early to tell whether it will become a player in social graph search. Nonetheless, their offering is a compelling one.

The big questions are: Do you need a separate engine to search your personal social graph, or will Google eventually do it better? And is search even the right metaphor when you can subscribe to your friend’s feeds across all social networks and media using services such as FriendFeed?

Crunch Network: CrunchBoard because it’s time for you to find a new Job2.0

Delver is attempting to solve two key search-related problems. The first is that current search engines do not take into account the identity of the searcher. For example, a teenager and a senior citizen performing the same query will get exactly the same results. The second is that current search engines do not allow users to search for information created and referenced by their own social graph. This is an important point because, let’s face it, social networking doesn’t offer much functional value beyond allowing people to connect with one another. The fact that you have 300 friends on Facebook, 200 on MySpace and 100 connections on LinkedIn doesn’t actually help you locate information. This is where Delver comes in. Search for “New York,” and the results that will pop up will be blog posts from people you know that mention or are about New York, or Flickr photos, YouTube videos, Delicious bookmarks, and the like.

The technology, which has been in development since 2005, combines search technologies, semantics and Natural Language Processing (NLP). Delver begins by crawling the Web in order to map users’ social connections. The information it finds on social networking profiles, blogs, bookmarks, photo and video-sharing sites is then cross-linked to the searcher’s social graph, which is built on-the-fly. Delver then prioritizes its results based upon the searcher’s social graph, thereby improving the relevancy of the results. Since every person’s social graph is unique—much like a fingerprint—the same Delver query will produce significantly different results for each person—as reflected through the collective experiences of each person’s contacts.

Using Delver doesn’t require users to sign-in, they can just enter their names (and some additional identifying details such as city, in the case of a common name). An email address will also allow Delver to leverage the popular social networks to locate users’ social graphs.

Registered users can claim their profile and authenticate the sources they want to associate with. This means that if I provide the username and password of my Flickr account, Delver considers this account to be mine and will not allow any other user to claim it. Placing authentication aside for the moment, users can indeed claim to be other people. The information Delver crawls is public so there’s no privacy issue here. There is also no real benefit to users who would do such a thing, in fact, it would be rather pointless. For example, I can Delver Michael Arrington’s social graph, but that would generate results that are relevant to him and not to me. However, as mentioned above, Arrington can easily claim his profile and that would be the end of that.

Founded in June 2007, Delver is currently based in Herzelia, Israel and is due to open a US office in the spring. The 20-strong team is headed by Liad Agmon who was co-founder and CTO of Onigma, a security company in the Data Loss Prevention space, and sold to McAfee less than two years after inception for $20M.

Delver will launch its private beta in March and we will make sure TechCrunch readers will be among the first to take it out for a spin.

Crunch Network: CrunchGear drool over the sexiest new gadgets and hardware.