iAngels Israeli Deal Digest – October 2020

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

 

This October we tracked 42 announced deals totaling at approximately $1.46 Billion, and 1 IPO of $7 million.

Online marketplace and Semiconductors fabrication were the two top performing sectors this month. Fiverr which provides an Internet platform linking freelancers with customers, announced the pricing of its convertible notes issue, planning to raise $400 million and a further $60 million if participants in the offering choose to exercise options to buy further notes. Nova Measuring, a leader in metrology solutions for advanced process control used in semiconductor manufacturing, announced the pricing of $175 million aggregate principal amount of 0% Convertible Senior Notes due 2025 in a private offering. In connection with the Offering, Nova has granted the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period beginning on, and including, the date on which the Notes are first issued, up to an additional $25 million aggregate principal amount of the Notes.

We also tracked an IPO on the Australian Securities Exchange of Nutritional Growth Solutions, a company which develops evidence-based clinically tested nutritional solutions for children, which resulted in a $7 million raise.

 

Seed Round

 

  • Engageli, a new digital education platform which facilitates polls, quizzes, and interactive exercises to test students’ knowledge, while a gallery view with fixed seating arrangements allows instructors to familiarize themselves with class layouts and access real-time engagement data, raised $14.5 million in seed funding, seed backers include personal investments from Benchmark Capital’s Alex Balkanski; Genesis Partners’ Gary Gannot; Cadence Design Systems CEO Lip-Bu Tan, and former 2U president, COO, and CFO Rob Cohen. Two investment funds — BRM and Emerge Education — also invested in the round.

 

  • Deci AI, deep learning platform announced a new seed round totaling $9.1 million. The round was led by Israel-based VC firm Emerge and global VC fund Square Peg to help the company build an AI-based platform that can automatically craft robust, scalable, and efficient deep neural network solutions for production at scale.

 

  • Cyberpion, a company which develops security solutions to protect an organization’s assets and connected external infrastructure, closed an $8.25 million seed round. The round was co-led by Team8 Ventures and Hyperwise Ventures with the participation of several angel investors including Giora Yaron.

 

  • FrontEgg, a startup which provides set of pre-built SaaS product capabilities that can integrate within new or existing SaaS applications, announced a $5 million seed round for what it’s calling its Saas-as-a-service platform. The pre-built suite of SaaS capabilities can enable teams to focus on core features and shorten time-to-market adoption. The round was led by Pitango, with backing from i3 Equity, and Global Founders Capital.

 

  • NeuraLegion, an application security platform offering NexDAST for dynamic application security testing, and NexPLOIT to integrate application security into SDLC (software development life cycle) raised a $4.7 million seed round led by DNX Ventures, an enterprise-focused investment firm. The funding included participation from Fusion Fund, J-Ventures and Incubate Fund.

 

  • Enso Security, a pioneering Application Security Posture Management (ASPM) startup, today announced $6 million in seed funding led by YL Ventures with participation from Jump Capital and security leaders including Alex Rice (Cofounder and CTO at HackerOne); Sounil Yu (former Chief Security Scientist at Bank of America); founders of Luminate (acquired by Symantec); Omkhar Arasaratnam (former Executive Director, Head of Data Protection Technology at JPMorgan Chase) and toDay Ventures. Founded by former Wix.com application security experts Roy Erlich (CEO), Chen Gour Arie (CPO) and Barak Tawily (CTO), Enso’s platform is designed to be the inventory of record for all things AppSec, enabling teams to manage application security at scale with an unprecedented automated and standardized program.

 

 

  • Walnut, a new platform that empowers customer-facing sales representatives to create, personalize, and manage the sales demo experience, announced the close of its $2.5 millionseed round funding. The round was led by venture capital firm, NFX, with additional investments from Avishay Abrahami, CEO at Wix; Joe Montana and Michael Ma, partners at Liquid2; Matt Wyndowe, partner at Graph Ventures; Kenny Stone, co-founder at Plangrid; Immad Akhund, former YCombinator PT partner and current CEO at Mercury; and Alon Gamzu, CEO at RoundForest.

 

  • Crux, a startupwhich quantifies user content retention, announced a $1.3 million Seed funding round. The investment was led by German WENVEST Capitalwith participation from London accelerator program Founders Factoryand A-Round Capital.

 

  • RoadSense, which develops a sensor network that provides tailor-made data collected from the streets, but without infringing on anyone’s privacy, announced a $1 million seed funding round. The investment was led by Capital Nature. The startup participated in the Highroad innovation program, which also participated in the round.

 

  • Agora, has recently closed a NIS 3 million ($883,000) round to help it continue its development of a platform for managing and automating real estate investments. Among the investors were Datora founders Ran Sarig and Efi Cohen, Team8 CEO Sarit Firon, Storedo’s CEO Doron Myerdorf, and others. The company has developed a platform that helps manage private real estate investments. It streamlines data collection and automates some of the manual processes that often take up valuable time, as well as calculates appropriate costs and returns.

 

  • Samson Logic, a startup which developed a system capable of registering and managing construction materials, including smart packages with IoT sensors, software that can convert orders of raw materials into packaging instructions, and software that can manage the inventory of materials at construction sites, closed a funding round totaling NIS 1.5 million (approximately $400 thousands). The funding was raised by construction companies Zemach Hammerman Ltd., Sivan Bitzua Ltd., Yanushovski Initiation and Development, and the US-based building materials logistics software company Applied Systems Associates Inc. (ASA).

 

A Round

 

 

  • Apiiro, a cybersecurity startup Apiiro Ltd. came out of stealth mode on Monday, announcing the completion of a $35 million series A funding round. The round was led by Greylock Partners and Kleiner Perkins, two leading Silicon Valley funds with participation by cyber entrepreneurs Mickey Boodaei, Rakesh Loonkar, Amichai Shulman, and the founders of Demisto, which was sold to Palo Alto, Dan Sarel, Slavik Markovich, Guy Rinat, and others. Ted Schlein, a senior partner at Kleiner Perkins, who in the past invested in Palo Alto Networks, led the investment on the firm’s behalf.

 

  • BlackSwan, a company developing an AI-based operating system meant to enable organizations to build applications of their own without the need for software experts, raised $28 million in a series A round led by Prytek, FinTLV Ventures, and MS&AD Ventures.

 

  • Salto, a company aiming to streamline day-to-day efforts of configuring applications by extracting the information and translating it to a standardized, structured textual representation, announced the completion of a $27 million series A funding round led by Bessemer Venture Partners, Lightspeed Ventures and Salesforce Ventures.

 

  • Mileutis, a company that aims to cease the use of antibiotics in the dairy industry by replacing it with a viable alternative raised $20 million to develop a drug that is designed to treat mastitis in cows. The private venture capital company, U.S.-based NovaQuest Capital Management LLC, which specializes in health and life sciences and oversees some $2 billion in investments, invested in the Israeli company.

 

  • Nym Health, a startup which automates the currently manual process of translating medical notes into billing codes which is essential for getting a medical reimbursement from insurance companies in the U.S., announced $16.5 million in Series A funding, led by GV (formerly Google Ventures), with the participation of Bessemer Venture Partners, Dynamic Loop Capital, Lightspeed, Tiger Global, and angel investors including Zach Weinberg and Nat Turner from Flatiron Health.

 

  • Lili, an all-in-one banking app designed for freelance workers, raised a $15 million funding round to accelerate growth as the American workforce is increasinglyturning to freelancing during COVID-19. The round was led by Group 11, with major participation from Foundation Capital, AltaIR Capital, Primary Venture Partners, Torch Capital, and Zeev Ventures.

 

  • Dataloop, Israeli AI data management and annotation startup, completed an $11 million series A funding round led by Amiti Ventures and participated by F2 Venture Capital, OurCrowd, NextLeap Ventures, and SeedIL Ventures. The investment follows a previously undisclosed $5 million seed round and will enable the company to increase recruitment efforts and grow its presence in the U.S. and European markets.

 

  • SiteAware, a company which developed a standard it has named digital construction verification (DCV) that verifies completeness of work on building sites and identifies deviations in real-time, completed a $10 million round A. The round was led by Axon Ventures and Robert Bosch Venture Capital, the VC arm of Bosch Group, with existing investors lool Ventures, Oryzn Ventures, The Flying Object, and Power Capital Venture also all participating in the round. The new round takes SiteAware’s total funding to date to $15 million.

 

  • Mine, a company which offers users concerned about their private information being online the possibility to automate data deletion requests, completed a $9.5 million financing round. The round was led by Gradient Ventures, Google’s AI-focused investment fund, and marks its first time investing an Israeli company. MassMutual Ventures and e.ventures also came on as new investors, with previous backers Battery Ventures and Saban Ventures also participating.

 

  • Aperio, a company developing a data integrity platform which automatically validates operational data at scale to improve data accuracy, allowing for better business decisions based on trusted, reliable data, closed an $8.5 million Series A funding round led by National Grid Partners.

 

  • AI, a startup developing an operating system for cobots (collaborative robots), completed an additional $4 million financing round, bringing the total capital raised in its series A to $8 million. The fundraising was led by SOMV and existing investors NFX, and Viola Ventures. Pinchas Buharis, managing partner at SOMV, will join the board of MOV.AI.

 

  • vHive, a digital asset software solution that helps enterprises digitize their field assets and operations using autonomous drone hives, announced a $4 million extension into its series A round, led by Telekom Innovation Pool (TIP), Deutsche Telekom’s strategic investment fund advised by DTCP. It has joined current investors Octopus Ventures and StageOne Ventures who also participated in the round. Alongside the extension, Deutsche Telekom Vice President and TIP Co-managing Director, Joel Fisch, has joined its board of directors.

 

B Round

 

 

  • Toka, a cybersecurity company which develops intelligence gathering technologies that empower law enforcement and intelligence agencies to strengthen homeland security, raised a $25 million Series B financing round led by Eclipse Ventures and with participation from all previous investors, including Andreessen Horowitz, Dell Technologies Capital, and Entrée Capital.

 

  • Illusive Networks, a cybersecurity company whose solutions focus on shrinking the attack surface and stopping attacker movement, completed a $24 million series B financing round. The round was led by Spring Lake Equity Partners, with participation from Marker, New Enterprise Associates, Bessemer Venture Partners, Innovation Endeavors, Cisco, Microsoft, and Citi.

 

  • Access Fintech, a fintech company which created a technological platform for financial institutions which allows participants to share financial data in order to mitigate risks during trades, raised $20 million in a series B round led by Dawn Capital, and with the participation of Deutsche Bank and existing investors J.P. Morgan, Citi and Goldman Sachs among others.

 

  • Tevel Aerobotics, an Israeli agricultural drone manufacturer is currently completing a $20 million financing round at a $45 million valuation. The company is led by founder and CEO Yaniv Maor and chairman Eyal Desheh, the former chairman of Isracard and CFO of Teva Pharmaceuticals and Check Point.

 

  • Adasky, a company which develops and manufactures systems combining high-resolution thermal vision sensors with artificial intelligence for the advanced vehicle industry. completed a $15 million series B financing round. The round was led by its previous backers including Japan’s Kyocera Corporation and South Korean parts manufacturer Sungwoo Hitech.

 

  • Panoply, whose solution combines data warehousing and code-fee data integrations, helping provide data analysis to teams of small and large sizes, announced an additional $10 million investment from Ibex Investors and C5 Capital for its cloud data platform. The latest round brings its total funding to $24 million.

 

  • Butterfly Medical, a company which develops an innovative, implantable device for treatment of Benign Prostatic Hyperplasia (BPH), raised $7 million in a Series B round. The round was led by Philadelphia-based New Rhein Healthcare Investors, which invested $5 million, with Israeli investor Mori Arkin and other existing backers investing an additional $2 million.

 

  • InnovoPro, a company which develops technology for extracting concentrated protein from chickpeas, raised $3 million. The round, which was originally announced in April, was led by Jerusalem Venture Partners, with participation from European foodtech fund CPT Capital, and Swiss retail giant Migros.

 

C Rounds

  • TechSee, Intelligent visual customer assistance solution company TechSee announced the compeletion of a $30 million series C investment round. TechSee’s visual assistance technology bridges the visual gap in customer service, allowing customers and technicians to receive real-time AR (augmented reality) guidance on their smartphone or tablet screens in assisted service or self-service mode. The round was co-led by OurCrowd, Salesforce Ventures, and TELUS Ventures with participation from Scale Venture Partners and Planven Entrepreneur Ventures.

 

  • Syte, a company developing AI-based visual search software which enables users who are searching for a particular item on online stores to take a photo of it and receive the most similar product among those sold on the platform, raised $30 million in a series C financing round led by Viola Ventures, which also led its previous round, with participation from La Maison, MizMaa Ventures, Kreos Capital, and existing investors Magma, Naver Corporation, Commerce Ventures, Storm Ventures, Axess Ventures, Remagine Media Ventures, and KDC Media Fund. The company said it had also raised $10 million in debt.

 

  • Azura, a clinic stage dry eye treatment developer, raised $20 million a financing round led by a syndicate of existing investors including OrbiMed, TPG Biotech, Brandon Capital’s Medical Research Commercialization Fund (MRCF) and Ganot Capital.

 

  • Edgify, a startup which develops technology that can train Machine-Learning between medical devices like MRIs, vehicle fleets, retail systems, mobile devices, and basically any device with an NPU, CPU, or GPU processing unit, announced the completion of a $6.5 million Seed funding round. The investment was led by Mangrove Capital andOctopus Ventures. The round also saw a strategic investment from a yet to be named major chip manufacturer.

 

Growth/Misc. Rounds

 

  • Fiverr (NYSE: FVRR), which provides an Internet platform linking freelancers with customers, announced the pricing of its convertible notes issue. The company plans to raise $400 million in an offering of convertible senior notes at zero interest to qualified institutional buyers. The notes are redeemable in November 2025. The conversion price is $213.57, representing a premium of 40% over Fiverr’s current share price. The amount raised could rise by a further $60 million if participants in the offering choose to exercise options to buy further notes.

 

  • Nova Measuring (Nasdaq: NVMI, TASE: NVMI), a leader in metrology solutions for advanced process control used in semiconductor manufacturing, announced the pricing of $175 million aggregate principal amount of 0% Convertible Senior Notes due 2025 in a private offering. In connection with the Offering, Nova has granted the initial purchasers of the Notes an option to purchase, for settlement within a 13-day period beginning on, and including, the date on which the Notes are first issued, up to an additional $25 million aggregate principal amount of the Notes.

 

  • Tipalti, a fintech company which developed a solution that allows companies to complete payment transfers automatically and even globally, raised $150 million at a valuation of more than $2 billion. The series E round was led by Durable Capital Partners, with participation from Greenoaks Capital and current investor 01 Advisors.

 

  • SimilarWeb, a company which has developed a way to measure and predict customer behavior in the digital era, completed a $120 million series funding round. The round includes both a primary direct investment in the company and a secondary investment in which shares will be purchased from current holders. The round was led by ION Crossover Partners and Viola Growth.

 

  • Augury, an Israeli based Industrial Internet of Things (IIOT) solution provider, secured $55 million in series D funding led by Qumra Capital and with the participation of existing key investors, including Insight Venture Partners, Eclipse Ventures, Munich Re Venture Capital, Qualcomm Ventures and Lerer Hippeau Ventures.

 

  • Rail Vision, who is a leading provider of cutting-edge cognitive vision sensor technology to increase safety in the railway industry, got a new investment from Knorr-Bremse adding up an another $10 million invested by them in March 2020. Additionally, Rail Vision has received a call option, available under certain conditions which should be met, to call for an additional $5 million under the same investment terms.

 

 

M&A/IPO

 

  • Nutritional Growth Solutions, a company which develops evidence-based clinically tested nutritional solutions for children, raised a $7 million in an IPO on the Australian Securities Exchange.