iAngels Israeli Deal Digest – April 2019

Welcome to the iAngels Monthly Deal Digest, a summary of movements in the Israeli startup market.

This April we tracked 29 announced deals totaling $788M, and 6 exits totaling $2.4B.

FinTech and cybersecurity were the leading sectors this month. Lemonade, an InsurTech company, designed to offer homeowners and tenants insurance powered by AI and behavioural economics by replacing brokers and bureaucracy to guarantee zero paperwork and instant coverage, raised $300M in a growth financing round led by Softbank’s Vision Fund with the participation of Aleph LP, Expansion Venture, General Catalyst, OurCrowd, Sequoia Israel, Sound Ventures, Thrive Capital, Tusk Ventures, XL Innovate and including the Corporate VC Allianz X. Armis Security, a cybersecurity company that eliminates the IoT security blind spot, protecting enterprises from the threat of unmanaged or rogue devices and networks, completed a $65M growth round led by Sequoia Capital with the participation of Bain Capital, Cerca Fund, Insight, Red Hot Capital Partners, Tenaya, the Corporate VC Intermountain Ventures, and a few private investors.

On the M&A side, we saw three large acquisitions including EFI, SAManage, and Magisto. EFI, a machine vision company, that is involved in digital imaging and print management solutions for commercial and enterprise printing, was acquired by Siris Capital for $1.7B. SAManage, a SaaS company that enables modern organizations worldwide to deliver a superior service experience to their employees, was acquired by SolarWinds for $350M. Magisto, a company that operates a cloud-based mobile video platform to upload, edit, and share video memories with friends and offers services for creating and sharing personal movies, was acquired by Vimeo for $200M.

April 2019 Investment Highlights

Seed Rounds

  • Crowdsense.ai, a FinTech B2B startup, whose core technology is a fully automated intelligence engine for institutional traders that detects disruptive events before they reach the news, received $0.22 million from private investors.
  • Brandable Technologies, an online B2B marketplace, enabling companies to buy top quality promotional and office products at low prices, received $0.12 million in seed funding from the Barclays Accelerator.

A Rounds

  • VDroom, an AI startup that has developed an interface for managing the images of hotels and online tourism properties, with the creation of VR/360 images of tourism assets, has raised $0.33 million in a Series A financing round from private investors via ExitValley.
  • Run:AI, a company that has developed an automated distributed training technology which virtualizes and accelerates deep learning, speeding up the training of neural network models and enabling the development of large AI models, has raised $10 million in a Series A financing round co-led by S Capital and TLV Partners.
  • HomeTalk, a company that has become the world’s leading Do-It-Yourself Home & Garden community allowing homeowners, bloggers, and professionals to share their DIY projects has raised $15 million in a Series A financing round led by NFX with the participation of Adam Neumann, AltaIR Capital and private investors.
  • ExamPAL, a startup that is disrupting the test prep industry with a fully personalized online learning experience, using AI to forecast what would be the fastest way for the learners to solve any question by studying the way they think, received $2.2 million in a Series A financing with the participation of HighGrade Ventures, the holding company EduLab and private investors.
  • Splitty Travel, a booking platform based on patent-pending technologies, that detects and offers its users significantly reduced prices, has closed $6.75 million in a Series A financing round led by Fosun RZ Capital with the participation of 11-11 Ventures, 2B Angels, Founders Group, Corporate VCs such as Taya Ventures and Cockpit, the Accelerator TechStars, BIP and a private investor.
  • Phantom Auto, a remote control-as-a-service safety solution for autonomous vehicles, using low-latency, high-bandwidth technology which allows trained teleoperators to remotely support AVs encountering challenges that can’t be resolved by current autonomous technology or when passengers seek assistance, has raised $13.5 million in a Series A financing round led by Bessemer, with the participation of Maniv Mobility Fund, OurCrowd, Tectonic Capital, the holding company Wolfson Group and a private investor.
  • Betalin Therapeutics, a pre-clinical stage company developing an innovative cell therapy solution for diabetes treatment with a game-changing technology (an Engineered Micro-Pancreas) which aims to replace insulin therapy for millions of patients worldwide, has closed $2.5 million in a Series A financing round with the participation of Shay Sapir Investment and several private investors.
  • Oriient, a company that helps brick-and-mortar retailers integrate their stores into a shopper’s digital experience, enabling them to extend the digital experience into the store itself, has completed a $4 million Series A funding round with the participation of F2 Capital Fund, Innogy Innovation Hub and NGN Partners.

B Rounds

  • ProteanTecs, a company that predicts failures in electronics by monitoring chips’ health and performance throughout their full lifecycle, applying machine learning to novel data, has raised $35 million in a Series B financing round from Redline Capital, Viola Ventures, Zeev Ventures, WRVI Capital, ITI fund, Corporate VCs such as Mitsubishi UFJ Capital and Intel Capital, and several private investors.
  • Teridion Technologies, a startup that is redefining content delivery by bringing a personalized Internet experience to businesses and their users, with a Global Cloud Network to stream video faster, to run Web conferences seamlessly, to upload files quicker, and more, received $9 million in a Series B financing round led by JVP with the participation of Magma and Sing Tel Innov.
  • Epitomee Medical, a MedTech company, that developed and commercialized drug-free self-administered, shape-shifting capsules, aimed to prevent diabetes and address overweight & obesity co-morbidities by promoting weight loss and establishing a healthier lifestyle, has raised $8 million in a Series B financing round led by XT Hi-Tech Investments with the participation of 7Health LP, Agate Medical, Consensus Business Group, and some private investors.
  • Amenity Analytics, a tech company that developed a cloud-based analytics solutions to help businesses draw actionable insights from text on a massive scale by transforming unstructured data into targeted information and delivering it in elegant formats, has closed $18 million in a Series B financing round led by the insurance company, STARR Companies, with the participation of State of Mind Ventures, AltruJem Ventures, and Corporate VCs such as Intel Capital and Allstate Investments, as well as a private investor.
  • Tarya, a company that provides an alternative investment platform in Israel, empowering growth, retention and relevance for the benefit of the public in both alternative investments and credit solutions to individuals and small businesses, has raised $19.7 million in a Series B financing round co-led by Digital Horizon, Hetz Ventures and Viola Ventures along with private investors.
  • 3D Signals, a company that is providing a sound-based predictive maintenance and equipment monitoring system, developed SENSO-MRR, an ultrasonic acoustic sensor which predicts electro-mechanical failure long before it becomes production-interruptive, has raised $12 million in a Series B financing round led by State of Mind Ventures with the participation of Grove Ventures Fund, Dor Engineering and several private investors.
  • Aidoc, a MedTech company that is creating a novel system for medical imaging, aiming to harness the recent advances in computer vision and machine learning to improve medical image diagnosis, and help the physician find the relevant data, received $27 million in a Series B financing round led by Square Peg with the participation of TLV Partners Fund, Magma, Emerge Fund, and several private investors.
  • AudioBurst, a company that is building the world’s largest growing library of audio content by listening to and indexing millions of audio files from a plethora of sources in real time, powered by advanced NLP technology and a proprietary AI platform that indexes audio segments into searchable bursts, has closed $10 million in a Series B financing round led by the Telecom company, Dentsu, along with 2B Angels, 83North, Flint Capital, a Corporate VC, Samsung Ventures and other companies such as Elron, Hyundai, Nippon Broadcasting or Advanced Media.
  • VDOO, a cybersecurity company whose mission is to create a chain of trust across the connected world, helping secure the Internet of Things on a global scale by using a machine learning-based engine to automatically analyze security vulnerabilities in connected devices, has raised $32 million in a Series B financing round co-led by GGV Capital and WRVI Capital with the participation of 83North alongside Corporate VC such as Dell Technologies, MS&AD Ventures or NTT Docomo Ventures, and several private investors.

Growth/Miscellaneous Rounds

  • Aqua Security, a company that enables enterprises to secure their cloud native, container-based and serverless applications from development to production, accelerating container adoption and bridging the gap between DevOps and IT security, received $62 million in a Series C financing round led by the private equity fund, Insight, alongside Lightspeed, TLV Partners Fund, the Corporate VC M12 and a private investor.
  • Pagaya Technologies, an FinTech company that is focused on deploying machine learning algorithms and Big Data analytics to deliver measurably higher profits across the fixed income and alternative credit spectrum, using state-of-the-art machine learning and algorithms, has raised $25 million in a Series C funding round led by Oak HC/FT Partners with the participation of Carmel, GF Capital, the Corporate VC Digital Ventures, the insurance company Clal Insurance, Siam Commercial Bank, and a private investor.
  • Armis Security, a cybersecurity company that eliminates the IoT security blind spot, protecting enterprises from the threat of unmanaged or rogue devices and networks, with an IOT security platform that can see and control any device or network, completed a $65 million growth round led by Sequoia Capital with the participation of Bain Capital, Cerca Fund, Insight, Red Hot Capital Partners, Tenaya, the Corporate VC Intermountain Ventures and a few private investors.
  • Lemonade, an insurance company designed to offer homeowners and tenants insurance powered by artificial intelligence and behavioural economics by replacing brokers and bureaucracy to guarantee zero paperwork and instant coverage, has received $300 million in a growth round led by Softbank Vision Fund with the participation of Aleph LP, Expansion Venture, General Catalyst, OurCrowd, Sequoia Israel, Sound Ventures, Thrive Capital, Tusk Ventures, XL Innovate and including the Corporate VC Allianz X.
  • Bizzabo, a networking and mobile platform for event organizers and attendees which integrates social media to build highly-interactive event communities, helping organizers, sponsors and exhibitors, to engage directly with guests and seek out meaningful new business opportunities, has closed a $27 million Series D funding round led by Viola Growth with the participation of AfterDox, Kaedan Capital, LionBird, Maor Investments, Massa Innovations, next47, OurCrowd, Pilot Growth, Star Farm Ventures, and many private investors.
  • Rapid Medical, a biotech company that is developing products designed to treat aneurysm (abnormal expansion of the artery or vein), blood vessels, especially stroke, including a supporter that can expand into blood vessels, allow its flow, capture, and get rid of blood clots, has closed a $20 million Series C funding round co-led by JAM Capital Partners and Microport with the participation of Agate Medical, BRM Group, Gefen Capital Fund, RocSon Medtech fund, Shanghai-Israel Investment Fund, Winnovation, and a few private investors.
  • Spot.IM, a social engagement startup that brings together discovery, conversation and digital sharing, received $25 million in Series C funding from AltaIR Capital, Cerca Fund, D5 Capital, Index Ventures, Millhouse Capital, Norma Investments, and two private investors including Roman Abramovitch.
  • Reali, a real-estate platform that brings buyers and sellers together around open communications and fair home prices, making the entire process as frictionless, transparent and financially rewarding as possible, completed a $30 million growth round led by Zeev Ventures with the participation of Liquid2 Ventures, SGVC, and Signia Venture Partners.
  • Seedo, a startup that is developing a fully automated hydroponics growing device, letting users grow their own herbs’ and medicinal plants in the comfort of their own home and to control and monitor the growing process, from seed to plant, while providing optimal lab conditions to assure premium quality produce year-round, completed a $4 million financing round from private investors.
  • Can-Fite Biopharma, a biopharmaceutical company with fully integrated pharmaceutical discovery and clinical development capabilities with an advanced pipeline of proprietary compounds in phases 2 and 3 of the clinical development stages, which addresses autoimmune-inflammatory and cancer diseases, completed a $3.2 million financing round from one undisclosed investment management firm.

M&A and IPOs

  • NetNut Ltd, a provider of a secure business proxy network that routes any HTTP/S requests through residential IPs with one hop connectivity to the target site, thus providing smooth and efficient traffic flow, with high speeds and low latency, was acquired by Safe-T for $9.7 million.
  • Tufin Software Technologies, a cybersecurity company that enables customers to increase their business agility while maintaining a robust security posture across physical networks, hybrid cloud, containers and microservices, raised $105 million in its initial public offering on the New York Stock Exchange.
  • SAManage, a SaaS company that enables modern organizations worldwide to deliver a superior service experience to their employees with its enterprise service management software which accelerates efficiency and visibility into required and delivered services across an organization, was acquired by SolarWinds for $350 million.
  • Magisto, a company that operates a cloud-based mobile video platform to upload, edit, and share video memories with friends and offers services for creating and sharing personal movies, was acquired by Vimeo for $200 million.
  • PRACTi, a company that develops iPad-based retail fund management systems for small businesses and self-employed workers, was acquired by Just Eat for $8.7 million.
  • Electronics For Imaging (EFI), a machine vision company, that is involved in digital imaging and print management solutions for commercial and enterprise printing, was acquired by Siris Capital for $1700 million.

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Best,
Massimo

Massimo is an analyst in the iAngels Investment Team and brings experience in investments and asset management. Massimo is passionate about technology and innovation, meeting with the greatest minds and ideas of talented entrepreneurs looking to make an impact. At iAngels, Massimo focuses on seed and series A investments and has built special expertise around FinTech.