Rocketing out of stealth mode, this BI company enters a growing and crowded field
Anodot, a business intelligence startup that specializes in anomaly detection, exited stealth on Wednesday and announced a $3 million Series A funding round led by Tel Aviv- and New York-based Disrupt-ive Fund. Its total funding to date is $4.5 million.
They use machine learning algorithms to identify system anomalies. Already counting prominent tech companies Wix and Avantis among their clientele, the new round will help them expand their sales strategy toward IoT, e-commerce, and adtech companies abroad.
“There is a huge opportunity to disrupt the BI market by enabling automated and real-time insights into big data pools of metrics and KPIs,” said Disrupt-ive Fund general partner and Anodot board member Tal Barnoach in statement to the press.
Its co-founders have impressive resumes: CEO David Drai is also the co-founder and former CTO of Cotendo, which was acquired by Akamai for $268 million, and the former CTO of Gett. Chief Data Scientist Dr. Ira Cohen is the former CTO of HP Software and VP of R&D Shay Lang has experience at several tech companies. Their board includes the likes of Imperva CEO and President Anthony Bettencourt and O’Reilly Media chief data scientist Ben Lorica.
“As a mobile taxi app, SMS text orders were dropped by the carrier, but it could take up to three days to spot critical issues and fix them, costing tens of thousands of dollars per incident,” Drai said. “That’s where I got the idea for Anodot—to employ the latest advances in machine learning to detect performance problems automatically and in real-time, eliminating the latency.”
BI is flying high
The business intelligence market is expected to grow 8.3% per year to a value of $20.8 billion in 2018, according to an industry analysis by MarketsandMarkets published earlier this year. Consequently, BI companies have raised a lot of money in 2015. Fellow Israeli startups Pyramid Analytics and Sisense both raised $30 million rounds this year. Other companies include Looker, which also received $30 million in March, and Adaptive Insights, which brought in $75 million back in June.
The company was founded in June 2014 by co-founders CEO David Drai, Chief Data Scientist Dr. Ira Cohen, and VP of R&D Shay Lang. They maintain offices in Sunnyvale, California and Ra’anana, Israel.