$100 Million Coming To Israeli Startup Modu

modu-logo.pngModu, an Israeli startup founded in 2007, is going to be adding $100 million to the $20 million in venture capital they’ve already raised, says Israeli newspaper The Globes. The company will create tiny modular phones that can be slipped into different device “jackets”— like an MP3 player, GPS, bigger cell phone, car stereo, or digital camera (see here for a demo video).

The round hasn’t closed yet, but clearly the details are leaking. The Globes isn’t naming the new investors but says that the company is being valued at $150 million pre-money, meaning they’re giving away a whopping 40% of the equity in this round. They must really need the money to get the product to market to take that kind of dilution.

Founder Dov Moran’s previous company, M-Systems, pioneered the concept of the USB flash drive and sold to SanDisk for $1.6 billion in 2006. See an interview with Moran here.