IronSource, a huge Israeli startup, completed a successful recruitment of approximately $80M, reflecting a market cap valued at $800M
IronSource, the Israeli startup specializing in distributing software by web browsers, search toolbars and search engines, recently completed a round of funding from private investors, valued at $80M. Underwritten by JP Morgan and Morgan Stanley and led by Tal Barnoach’s Disruptive fund with participation by institutional investors from both China and the United States, the round reflects a total company valuation of $800M.
More than 150 million devices in
Three large companies compete in the Israeli software distribution market through browsers, toolbars and search engines. Two of them are public companies: Babylon, traded on Tel Aviv’s TASE stock exchange and Perion traded on Nasdaq. A year ago, IronSource nearly merged with Babylon but before the negotiations could be completed, Google threw a monkey wrench into the works by terminating its contract with Babylon and cutting off a signifigant mechanism in its revenue stream. According to estimates, the Company earned $200M in 2013 out of which, gross profit was some $50M. The company has offices in Tel Aviv, Beijing and San Francisco withy 200 employees working across its three locations. It is quite possible that the company will use the capital raised to acquire online advertising companies or installations (IronSource already acquired two companies to function as subsidiaries: ClickMeIn and Dealply, bringing tens of millions of new users) using the additional investment to develop additional markets. The company has already marked Asian as a destination when it opened an office in Beijing. Tomer Bar-Zeev, the company’s CEO, said at the time: “IronSource is recognized worldwide as a leader in its field, and we are looking for ways to expand our footprint in China.”
IronSource was established 4 years ago by Roy, Itay, and Eyal Millard and Tomer Bar-Zeev. The company has developed an Installer named installCore, in addition to the installation of certain software, it also recommends additional software to install depending on the characteristics of each individual user, similar to what we see on many ecommerce sites. For each software installation carried out through the IronSource, the Company receives payment from the software developers. installCore, the company’s flagship product, is alone responsible for more than 150 million installations every month. The company claims that 1 in every 3 downloads the world over is carried out through their services. IronSource has also developed additional products and installations, including mobileCore Mobile advertising, mediaCore and displayCore.