Onavo, providers of mobile data management apps for smartphones and tablets that stretch data plans and save money, today announced it has selected Sequoia Capital and Magma Venture Partners to participate in its round of Series A financing of $3 million. Onavo’s first app, launched last month to critical acclaim, enables iPhone and iPad users to slash mobile data costs by applying compression to shrink data consumption and providing visibility into the device’s data usage.

This round of funding is further testament to Onavo’s breakthrough technology and will strengthen the vision that has guided the company from day one – to help users regain control over mobile data usage. Sequoia has backed an unprecedented number of enormously successful companies including Google, AdMob, Cisco and Jajah. Magma was the first to identify and started some of the most innovative and successful Israeli-related early-stage startups, including Provigent, Wintegra and Waze.

“Mobile data overload is a huge pain for operators and consumers,” said Yahal Zilka, Managing Partner at Magma, "Onavo aims to solve this and possesses two key ingredients required for any successful start-up – disruptive technology and a talented team, led by co-founders Guy and Roi. The Onavo investment adds to a strong list of consumer-facing new media opportunities that Magma focuses and specializes in.”

“Onavo is clearly striking a chord with consumers already and we look forward to assisting Guy, Roi and the team as they build out their business,” said Gili Raanan, General Partner at Sequoia, “Onavo presents a win-win solution for both carriers and end users who can now pay significantly less for data consumption on iPhone, iPad and soon Android devices, without compromising their user experience.”

“We are thrilled to have Sequoia and Magma on our team,” said Guy Rosen, Onavo Co-Founder & CEO, "with their commitment to Onavo, we will be able to focus on our core technology, introduce Onavo to additional platforms and further evolve our services.”

Yahal Zilka of Magma Ventures Partners and Gili Raanan of Sequoia Capital will be joining Onavo’s Board of Directors.