[ISRAEL] If there are any lessons to be learned from 2000 when making predictions for the coming high-tech year, it is that there are no sure-fire prophets in this business. All the "Best Startup" awards in the world don't help when the money begins to run out and its time to downsize, perhaps down to size zero.

"Voice over IP is very hot," said Joshua Segal, investment bank WR Hambrecht and Co's Israel-based representative. "The broadband infrastructure field will continue to be a hot field, but in terms of content, it is really too early for interactive television and the like."

Despite the recent "shakeout" in the field, Segal highlights optical networking as an area to watch in 2001. As for peer-to-peer networking:

"The industry needs a successful profitable model before it can justify the hype," said Segal.

Hype is an essential part of the lifecycle of a new industry sector, said Daniel Meron, technology analyst at Israeli investment bank Nessuah Zannex.

"Mobile Internet is somewhere between hype and actually doing it," said Meron. "Six months ago, WAP was the biggest thing, but now you need to develop something people really need. Broadband access was really hyped a year and a half ago and now we see things happening, but a lot of broadband access companies are going down."

He agrees that Internet telephony is coming into its own.

"I think that it is going to get stronger, because a lot of the hurdles such as the standards and the technologies are now behind us," he said. "Voice over IP is an example of something is going to get bigger and bigger and usage is going to increase."

In a year's time, when we are older and wiser, we may look back at this list and laugh, but meanwhile here are israel.internet.com's "Ten to Watch" in the coming 12 months, in purely alphabetical order. Whether you agree or disagree, or have your own suggestions, tell us what you think.

1. Actelis Networks
   While everyone is talking fiber, Actelis Networks, established in 1998, is aiming to squeeze out optical fiber-grade performance from existing copper lines, saving the expense of laying new networks. The company has among its investors New Enterprise Associates, US Venture Partners and Vertex Management.
2. Atrica
   In contrast, Atrica is pinning its hopes on a fiber-filled future. Founded in 2000 by ex-3Com employees and with $16 million in funding from 3Com, Accel Partners, Benchmark Capital and others, Atrica is developing optical Ethernet platforms for next generation metropolitan area networks (MAN).
3. eZaro
   As the pipes grow, so will load on the server. Seven-month old eZaro is developing a software platform to distribute the load by exploiting unused network resources. The company, with founders from Gilat Satellite and a research manager who also heads the Israel Internet 2 project, received $2 million from STI Ventures in September.
4. M@inNet
   Focusing on another kind of pipe, M@inNet sends data and voice over power lines and aims to reach speeds of 10 megabits a second early next year. The company, whose investors include Noga Investments, recently partnered with U.S. energy company PowerTrust to break into the North American market. Field trials will begin in 2001.
5. P-Cube
   Back to content. Founded in 1999 by executives from VocalTec, Indigo and PentaCom, P-Cube's platform is designed to facilitate the move to a world where we receive - and pay for - the content and services that we want. Accel Partners, Communication Ventures and Evergreen participated in P-Cube's $20 million second round in October.
6. Redux
   When broadband gets to multiple devices in the home, the challenge will be to deliver enough bandwidth to each. This is what Redux's content-aware routing chip does from the broadband access box. Founded in 1999 by employees from RAD Data Communications, the company raised $5 million in July from Genesis Partners and Giza Group.
7. Tundo
   While broadband is coming, IP telephony is here. Founded in 1998, Tundo develops open network telephony systems and recently partnered with Siemens to combine its technology with Siemens' IP telephone. The company raised $30 million in April from investors including Goldman Sachs, Comverse, Singapore Telecom and the Cedar Fund.
8. WebCollage
   Partnerships are the theme of WebCollage's business model. Founded in 1999, WebCollage allows a company to package part of its website into an "e-service," such as selling airline tickets, which can be slotted into other websites. The company received $16 million in November from Sierra Ventures, Gilde IT Fund, Cedar Fund and other investors.
9. WhiteCell
   Mobile Internet can't be ignored, but while startups are rushing to develop applications, few are thinking about the security implications. WhiteCell, established in 1999, is developing products for mobile data security and management for SMS, WAP and other cellular networks. Investors include Giza Group.
10. XOsoft
    Also thinking about data, XOsoft is focusing on how to cache dynamic content for fast delivery. Established in 1999 by an ex-NASA scientist, XOsoft recently appointed Lance Boxer, formerly of Lucent, as president and chief executive. Goldman Sachs, Draper Fisher Jurvetson Gotham and Neurone Venture Capital took part in XOsoft's recent $16 million C round of funding.

If you have your own suggestions for the year's Top Ten, let us know. Click here to send us your Top Ten list. We'll publish the best ones.