Following the month of September, which saw almost $1 billion in fundraising, Israeli startups sustain momentum going into October. This month Israeli startups raised around $731 million in 38 different transactions. Despite the numbers dropping off a bit in comparison to last month, when scaleups took the main bulk of the VC funding, this month we actually saw the trend shift back to focusing on early-stage.
Early-stage rules the month
Out of all the funding rounds reported this month, no less than 27 rounds included investment in early-stage startups, with 17 of the companies scoring Seed rounds and another 10 landing their Series A funding. Although, what goes up must come down, and Series B and up funding rounds saw a significant decrease in October, securing only 11 investments. However, don’t feel too sorry for the scaleups, as their funding wallets were stacked with most of the invested capital.
This month we had 2 mega-rounds of over $100 million, with Tipalti’s $150 million and SimilarWeb’s $120 million. This further showcases the growth-stage startup dominance that’s responsible for over 65% of the total fundraised amount this month.
Even though October produced less fundraising volume, the numbers fairly resemble the Israeli ecosystem’s funding success from 2019, before Coronavirus hijacked our normal. This is added to the fact that last month saw two unique mega-rounds (Next Insurance and Synk) which brought in almost a half of a billion dollars on their own.
Israeli exit rounds also tailed off this month, totaling 3 compared to September's fruitful 6. Israeli cyber startup PortShift was acquired by technology giant Cisco; continuing in the security department, Polyrize was acquired by U.S.-based Varonis; and adjusti.co is now part of the Teikametrics network. Unfortunately, none of the exit details were reported, but both Cisco and Varonis are publicly traded, and therefore not obligated to tell anyone anything.
October 2020 funding rounds
The Israeli startup’s transaction rate increased during the pandemic. But CEO Roy Saadon tells us that a few months ago things looked a little different, with a planned round canceled at the last minute.
The fintech company joins the Unicorn club with a mega funding round. Former Twitter CEO, who got in on the round said: “When I ran Twitter, I saw first-hand the importance and value of Tipalti.”
The startup that develops deceptive cyber mesures for organiztional networks experienced an increase in demand during COVID. Company CEO: “We keep in contact with different investors and this round mostly came together due to a previous relationship with the investing parties.”
The Israeli startup that was founded by Check Point acquired Dome9, provides developers with a platform that helps them focus more on the code, and less on authorizations.
This Israeli startup claims to be able to identify any construction mistake or anomaly by using AI and a unique photogrammetry engine.
Israeli startup Edgify was playing the computer vision game, until a new need was discovered, leadingthe company to pivot.
Agora raises Seed from leading Israeli high-tech executives for real estate investment management platform.
Instead of robot manufacturers also developing the software, MOV.AI wants separate hardware from software, making robotics cost-efficient and more accessible.
Israeli startup Navina recognizes the COVID accelerated movement in the medical industry, and scores Seed funding to empower physicians with AI-powered insight at point-of-care.
The Israeli startup aims to improve enterprise’ development process by improving communications among the DevSecOps network.
After operating for years without outside funding, the global pandemic sparked the Israeli cyber company to score its first investment for complete organizational asset defense.
"The process of translating medical notes into billing codes is a cumbersome and manual process, and a top pain point for many health systems in the U.S.," says Managing Partner at Google Ventures.
Israeli startup vHive develops end-to-end software solutions enabling organizations AI-powered drone management, and tags on another $4M from German supergiant to its Series A round from last year.
As COVID restrictions continue to challenge innovation, Israeli startup Augury leverages its AI-powered machine health diagnostic system to keep industry and supply chains running at optimal capacity.
The Israeli startup developed a platform for organizations to label and manage data, making it easier to implement AI into production. According to the company “by keeping humans in the ‘loop’, algorithms can create more accurate and reliable predictions in less time, at scale and on budget.”
Israeli startup Frontegg uses a SaaS model to build SaaS features, liberating Dev teams from painstaking endless hours of developing application features on their own.
Israeli startup NeuraLegion developed an application security and API testing platform. CEO and co-founder: “NeuraLegion is rationalizing application security for modern development organizations.”
Google's AI-focused VC fund leads a $9.5M Series A in Israeli startup MINE that wants to give users control over their data, and claims that 90% of private data erasing requests run through its platform.
Israeli startup AdaSky. which provides the autonomous automotive industry with thermal sensing technologies, reveals how they harnessed that same thermal imaging tech to help combat COVID-19, and why raising less than its last round is nothing to worry about.
Israeli startup CRUX Knowledge ranks users' knowledge after consuming content and provides actionable insight for better engagement.
With COVID driving freelance work through the roof, Israeli fintech maestro Lili, provides all the financial tools gig workers need for digital banking.
From a vest that helps you breathe to special implant cleaning tech, MedTech accelerator MEDX invests in 3 Israeli startups: Swift Duct, Synchrony Medical, and Dimoveo Medical. MEDX CEO: “We continue to be committed to identifying technological solutions that can help improve various medical treatments, alongside providing the healthcare system with a tech-based upgrade.”
In a time when human interaction is minimized, remote service picks up the slack. Israeli startup TechSee provides AI-powered AR guidance that bridges the remote gap from problem to solution.
Israeli startup Deci secures Seed round aiming to revolutionize Machine-Learning training by powering its neural network platform with AI in the driver seat. CEO: “...We realized that the optimal strategy is to harness the AI itself to tackle this challenge....”
Is an IPO coming? Israeli market intelligence startup SimilarWeb reels in mega funding with existing investors and veteran employees in mind.
"We realized the challenges BizOps teams face are very similar to the problems encountered by software and DevOps engineers on a daily basis," said Salto co-founder and CEO.
Israeli startup Salto emerges from stealth mode with a business application configuration SaaS tool, and funding.
Israeli startup Panoply develops a platform for warehousing data on the cloud and providing quick enterprise access to actionable data insight through major market BI platforms.
The Israeli cyber company that wants to help governments prepare their national cyber strategy scores first funding in 2 years.
Toka co-founder and President says that “The gap between nations that are adequately prepared to address cybersecurity threats and those that are not is vast, creating huge risks for their citizens and global stability.”
Israeli startup Aperio Systems develops technology for detecting data anomalies in IIoT sensors. VP R&D: “COVID delayed the round but thanks to strong energy sector investors we pulled through.”
Butterfly Medical raises $7M
The startup develops an implant for treating enlarge prostates, and secures a Series B that will help get a coveted FDA approval.
Walnut lands $2.5M
The startup developed technology that empowers sales teams with a code-free customizable platform to drive conversion rate. The round included NFL legend Joe Montana on the investing side.
Israeli startup BlackSwan emerges from stealth mode with Series A funding, a partnership with Deloitte, and an AI operating system.
Stuff nabs $8.6M
The Israeli startup develops an AI-driven system that connects between executives and their personal assistants, in addition to managing tasks through its remote management platform.
Engageli lands $14.5M
The Israeli startup brings a COVID reality solution by developing a platform that provides students with virtual tools for remote learning.
Israeli startup Syte leverages visual AI to provide eCommerce with a personalized shopping experience that leads brands to better connect with their consumers.
CEO and co-founder: "In the new age of eCommerce, the brands and retailers that create truly individualized and memorable customer experiences will thrive.”
Innovopro secures $3M
The Israeli startup that’s developing “super” chickpeas with 70% protein secures investment from Dutch bank Rabobank as part of the startup’s Series B.
October 2020 exits
Born from the Team8 foundry, Portshift develops a cloud-native security platform for application lifecycle protection. The Israeli startup is expected to join the U.S. giant by H1 2021. Cisco senior VP: “We are extremely excited to welcome Portshift to the Cisco ecosystem.”
NYC-based Varonis, which holds a $3.8B market value, sees the acquisition of Israeli startup Polyrize as a natural step in minimizing cloud security risks.
Adjusti.co provides AI-powered market intelligence and insight for E-commerce marketplaces. Now the Israeli startup joins Teikametrics in order to ensure optimal marketplace management.