iAngels Israeli Deal Digest – January 2021

Deal Digest January 2021

 

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

 

This January we tracked 35 announced deals totaling at approximately $2 billion, 4 IPOs of approximately $1,96 billion and 3 acquisitions of approximately $86 million.

Fintech, Cloud software and and Travel management were the three top performing sectors this month. Rapyd, a company which provides a solution that allows businesses and their customers to pay and be paid however they choose in a way of fintech-as-a-service platform that enables any type of payment for in-country or cross-border commerce, announced a massive $400 million funding round at a valuation of $2.5 billion. OwnBackup, a leading cloud data protection platform announced a Series D investment of $167.5 million co-led by Insight PartnersSalesforce Ventures, and Sapphire Ventures, with participation from existing investors Innovation EndeavorsVertex Ventures, and Oryzn Capital. TripActions, a cloud-based corporate travel and expense management platform, announced Thursday that it has raised a $155 million series E funding round led by Andreessen Horowitz (a16z), with participation by new investors Addition and Elad Gil. DriveNets, a networking software company announced that it had completed a $208 million series B funding round at a valuation of $1.3 billion. The new capital brings the total it raised so far to $325 million. The round was led by new investor D1 Capital Partners with significant follow-on investments from existing investors Bessemer Venture Partners, Pitango and Harel Insurance, who invested nearly $14 million in the round. New investor Atreides Management also participated in the round.

On the M&A side, Playtika, mobile gaming company has held its initial public offering (IPO) on Nasdaq. The Herzliya-based company raised nearly $1.9 billion at $27 per share, above the planned range of $22-24 per share. Playtika said that the offering consisted of 18,518,500 shares of common stock offered by Playtika and 50,981,500 shares of common stock offered by an existing stockholder. Playtika said it will not receive any proceeds from the sale of shares by the selling stockholder. The underwriters have a 30-day option to buy an additional 10,425,000 shares of common stock from the selling stockholder at the initial public offering price. Alcide, a startup, which developed a cloud security platform designed to provide DevOps, security, and engineering teams with simplified tools to manage and protect data centers against cyber attacks, is being acquired by US based cyber company Rapid 7 for $50 million. UpRight, DarioHealth is making moves to grab a piece of the digital musculoskeletal market with the acquisition of Upright Technologies. The digital chronic condition management company agreed to acquire Upright for $31 million with $29.5 million paid in stock and $1.5 million in cash after deducting outstanding debt and making working capital adjustments. DarioHealth will issue approximately 1.7 million shares of common stock to Upright shareholders at the closing, which is expected to take place in early February. After the closing of the acquisition, Upright’s CEO and co-founder Oded Cohen will serve as Dario’s general manager of musculoskeletal product and will join Dario’s board of directors.

 

Seed Round

  • Pinecone, an artificial intelligence company, the developer of machine learning infrastructure for the cloud, announced that it had raised $10 million in seed funding. The round was led by the Wing Venture Capital. Pinecone’s system was built by the same team that created Amazon SageMaker, the corporation’s solution for machine learning and artificial intelligence, and was founded by Dr. Edo Liberty, formerly a scientist and director at Amazon AWS.

 

  • Swapp, an AI-powered construction planning company announced that it had raised $7 million in seed round. The round was led by Point72 Ventures and Entrée Capital with the participation of existing investors. Swapp helps streamline the conception, architectural design, and engineering processes for real estate developers and construction companies to help them control all phases of their projects. The platform lets users create their entire construction planning, including feasibility assessments, documents, and plans.

 

  • Swimm, a multiple codebase company announced that it had closed $5.7 million in seed funding led by Pitango First and with the participation of TAU Ventures, Axon Ventures and Fundfire and a group of high-profile angel investors including the founder of Snyk. The startup also launched its platform for sharing information about any codebase to make development processes, including developer onboarding and inter-team collaboration, smoother and faster.

 

  • Armo, which develops a platform that secures cloud-native workloads with in-memory protection coupled with built-in visibility and control, announced its launch out of stealth having secured $4.5 million in seed funding from Pitango First. The company plans to use the funds to expand its go-to-market efforts and commercial offering of its technology.

 

  • Joshu, an insurtech company that helps insurance carriers launch online distribution channels, announced it had closed $3.7 million in seed funding led by Blumberg Capitalwith participation from Engineering Capital, Correlation Ventures, Innovation Endeavors and Sure Ventures.

 

  • Avenews-GT, a company which developed a digital agribusiness management platform that creates an infrastructure for financial institutions to provide services to their agribusiness customers who operate across supply chains in emerging markets, raised $3 million in a seed round from XT Hi-Tech.

 

  • Skelable, a company which develops a wearable solution that enables therapists to improve rehabilitation, raised $0.94 million in a seed round from eHealth Venures and ShizimXL. Skelable device enables patients to do everyday activities and has been tested on patients with stroke, spinal cord injury, and amyotrophic lateral sclerosis (ALS).

 

A Round

 

  • SetSail, an AI-powered platform that combines data and behavioral science to drive more revenue per sales rep, has secured $26 million in Series A funding. The round, led by Insight Partners with participation from existing seed investors Wing Venture Capital, Team8 Capital and Operator Collective, brings SetSail’s total funding to date to $37M. SetSail experienced 9X revenue growth in 2020, serving customers like Cisco, Dropbox, and Pendo among others.

 

  • StackPulse, a software company, which creates automated software to respond to glitches without the need for traditional IT tools, raised $20 million in a series A funding round led by venture capital fund GGV Capital. The current round comes after StackPulse completed its $8 million seed investment round less than a year ago, which was led by Bessemer Venture Partners, which also took part in the current round. Other leading names from the industry who took part in the round include Wiz CEO Assaf Rappaport, Armis Security CEO Yevgeny Dibrov, angel investor Benny Schnaider, Assaf Wand of insurtech company Hippo Insurance, and other leading entrepreneurs.

 

  • ClassiQ, a company which develops tools for converting human thought into quantum circuits, announced that it had raised $10.5 million in series A funding led by Team* Capital and Wing Capital. Classiq Technologies overcomes the bottleneck of quantum computing software development by creating a brand new way of developing quantum algorithms. The company developed tools for the automatic translation of human ideas into quantum circuits and provides the basic elements required for the creation of quantum algorithms.

 

  • OncoHost, a global leader in host response profiling for improved personalized cancer therapy, announced the completion of a $8 millionSeries B funding round. The funding will help finance OncoHost’s ongoing clinical trials, open a US-based affiliate and prepare for the upcoming launch of PROphet®, the company’s machine learning-based Host Response Profiling platform that combines proteomic analysis with AI to predict patient response to immunotherapy, providing clinicians with potential combination strategies to overcome treatment resistance. The funding round was led by OurCrowd, an investment platform built for accredited investors and institutions to invest in start-ups, early-stage companies and venture funds. They were joined by a group of family offices and private investors.

 

  • L7, a leading cyber security technology pioneer and the provider of the award-winning Ammune™ enterprise-grade API (application programming interface) security solution, announced that it had successfully completed a financing round of $4 million, led by Germany-based TRUMPF Venture with participation from India-based Quick Heal technologies.

 

  • Serenno, a local medical device startup raised $1.5 million from Elcam Medical, an Israeli healthtech company that creates medical devices for monitoring fluid management in a variety of different medical fields. Elcam Medical will manufacture Serenno’s urine output and intra-abdominal pressure digital monitoring device, Sentinel. The device is designed to detect acute kidney injuries (AKI), or severe loss of kidney function which can progress quite rapidly and lead to severe deterioration in a patient’s health.

 

  • Ceretrieve, a company which designed and developed CathTrap, a neurothrombectomy system with integrated embolic protection for ischemic stroke endovascular treatment, has announced the completion of $1.5 million funding round from The Trendlines Group, Israel Innovation Authority and Agriline. CathTrap provides physicians with a safe, easy-to-use device to prevent distal embolization during thrombectomy procedures for better treatment efficiency and improved clinical outcomes for patients.

 

B Round

 

  • DriveNets, a networking software company announced that it had completed a $208 million series B funding round at a valuation of $1.3 billion. The new capital brings the total it raised so far to $325 million. The round was led by new investor D1 Capital Partners with significant follow-on investments from existing investors Bessemer Venture Partners, Pitango and Harel Insurance, who invested nearly $14 million in the round. New investor Atreides Management also participated in the round. DriveNets’ goal is to accelerate network growth, improve network economics and enable the delivery of new services at the network edge. DriveNets runs on standard white boxes based on merchant silicon, opening the traditionally locked networking market to more players and services. DriveNets Network Cloud is already deployed as the core routing solution for AT&T, which is one of the largest networks in the world.

 

  • Resident, a platform of digitally native brands in the mattress and home goods market, announced that in Q4 of 2020 it received an investment of $130 millionled by Ion Crossover Partners and Nexus Capital Management with participation from Baron Capital Group. The funds will be used by the company to execute Resident’s growth plan, expand its brick-and-mortar retail footprint and strengthen its supply chain and infrastructure to deliver a better customer experience.

 

  • Melio, a B2B payments company has raised another significant milestone, completing a $110 million financing round at a valuation of $1.335 billion, adding to the growing list of Israeli unicorns. The company’s valuation doubled in the most recent round, having raised its previous 2020 round at a $700 million valuation. Melio, which developed a simple technological solution enabling small businesses in the U.S. to digitally transfer payments to their suppliers, benefitted from perfect timing and a measure of luck. Its solution helped small businesses overcome the payment transfer challenges brought about by the Covid-19 pandemic and in fact provided a business lifeline to many of them.

 

  • Ukko, a biotechnology startup which uses immunology, machine learning, and protein engineering to make measurably better and safer proteins for use in food and therapeutics, has completed a $40 million series B funding round led by Leaps by Bayer, the investment arm of German pharmaceutical giant Bayer. Continental Grain Company, PeakBridge Ventures, Skyviews LifeScience and Fall Line Capital all participated in the round, with current investors, Khosla Ventures, Innovation Endeavors and Marc Benioff, the founder of Salesforce, also all taking part.

 

  • Run:AI, a startup which has developed an orchestration and virtualization software layer tailored to the unique needs of AI workloads running on GPUs and similar chipsets, announced that it had completed a $30 million series B funding round led by Insight Partners and participated by existing backers TLV Partners and S-Capital. The latest funding brings the companies’ total to $43 million. Insight Partners managing director Lonne Jaffea will be joining the company’s board of directors.

 

  • Carbyne, an emergency response technology company announced that it had raised $25 million in a Series B1 funding round led by Hanaco Ventures and ELSTED Capital Partners, with participation from former CIA Director General David Petraeus and all existing investors, including Founders Fund, FinTLV, and more. The latest funding round follows its series B financing in 2018 from Founders Fund and ELSTED Capital Partners. The new capital will fund the continued progress of Carbyne’s mission to enhance emergency communications and first responders’ efficiency.

 

  • VDOO, a software protection company announced that it had extended its B investment round by an additional $25 million. The round’s extension was led by the Qumra Capital fund and Verizon Ventures. According to Calcalist’s estimates, the company’s valuation at this time is significantly higher than it was at the start of the round.

 

  • FeelIT, a company whose sensing technology provides real-time updates to the wear and tear of production line components, announced a $5 million Series A funding round. The investment was led by Henkelthe detergent and soap giant, which operates in both industrial and commercial sectors.

C Rounds

  • Curve OS, a British fintech company, which was founded by Israeli entrepreneur Shachar Bialick, announced that it had raised $95 million in its series C investment round. The round was led by IDC Ventures and Vulcan Capital Management, the investment arm Microsoft founder and philanthropist Paul Allen. OneMain Financial and European Novum Capital also participated in the round. Curve, which is based in London with offices in Tel Aviv, developed a technology that unites all payment methods into a smart credit card that connects to leading apps. It allows users to make payments anywhere in the world, and its slogan claims users will have “one card to rule them all.” Currently, it supports Mastercard and Visa, although it has yet to work with Google Pay and is offered in the U.K. and most European countries.

 

  • GlassesUSA, an Optimax Eyewearsubsidiary, the leading online eyewear retailer in the US, has announced today the close of $45 million in funding from Tene Investment Fund. The company holds the largest selection of styles on the market, including the most well-known eyewear brands, as well as five different private label brands that represent over 50% of company sales.

 

Growth/Misc. Rounds

 

  • Rapyd, a company which provides a solution that allows businesses and their customers to pay and be paid however they choose in a way of fintech-as-a-service platform that enables any type of payment for in-country or cross-border commerce, announced a massive $400 million funding round at a valuation of $2.5 billion. Some $300 million were raised in a series D financing round, with another $100 million coming in through secondary funding that will be used to purchase shares belonging to employees and company executives, as well as those of angels and shareholders who invested in the company in its early days.
  • OwnBackup, a leading cloud data protection platform announced a Series D investment of $167.5 million co-led by Insight PartnersSalesforce Ventures, and Sapphire Ventures, with participation from existing investors Innovation EndeavorsVertex Ventures, and Oryzn Capital. Following a $50 million financing announced just six months ago, OwnBackup’s cumulative funding now totals over $267.5 million. This further underscores the expanding market for cloud data protection and OwnBackup’s position as the platform of choice for nearly 3,000 customers.
  • TripActions, a cloud-based corporate travel and expense management platform, announced Thursday that it has raised a $155 million series E funding round led by Andreessen Horowitz (a16z), with participation by new investors Addition and Elad Gil, the former Vice President, Corporate Strategy at Twitter who has also invested and advised the likes of Airbnb and Coinbase. Existing investors Lightspeed, Zeev Ventures and Greenoaks Capital also participated in the round. TripActions has raised a total of $790 million to date, with Dovi Frances’ Group 11 being another of its notable investors.
  • Dremio, the innovation leader in data lake transformation, announced it had raised $135 million in Series D funding, bringing the company’s valuation to $1 billion. This preemptive fundraising occurred just nine months after a $70 million round led by Insight Partners in March 2020. The new fundraising round is led by Sapphire Ventureswith participation from existing Dremio investors: Insight Partners, Lightspeed Venture Partners, Norwest Venture Partners, Redpoint Ventures, and Cisco Investments. The investment will help Dremio expand its engineering centers of excellence around the globe, grow its customer-facing organization, contribute to open-source initiatives, and invest heavily in educating and enabling a growing community of data lake practitioners.
  • K Health, the Israeli-founded remote healthcare company, announced that it had closed a $132 million Series E round of funding led by GGV Capital and Valor Equity Partners. This is the third round of funding the company completed in under a year, having raised $42 million in November 2020 and $48 million in February, adding up to $224 in total.
  • DarioHealth, a digital therapeutics company announced definitive agreements with a syndicate of healthcare institutional investors to raise $70 million through a private placement of its common stock. Dario has executed securities purchase agreements for the sale of 3,278,688 shares at a purchase price of $21.35 per share. Dario intends to use the net proceeds from the offering for general corporate purposes.
  • Quali, a company Quali, which develops solutions for the automation of computing, communications and cloud infrastructure, announced that it had completed a $54 million series C funding round led by Greenfield Partners and JVP.
  • CathWorks, a company which develops a non-invasive device that enables physicians and clinicians to visualize oxygen delivery to the heart in real-time using X-rays, announced it had closed a $30 million series C round led by Deerfield Management Company LP. CathWorks raised around $46 million to date.
  • Tigo Energy, the worldwide leader in Flex-MLPE (Module Level Power Electronics) announced a $20 million round of investment, led by Energy Growth Momentum.
  • IceCure (TASE: ICCM), medical device company which has developed cryoablation technology to destroy tumors by freezing without the need for surgery, announced a private placement of ordinary shares of $15 million today at a price per share of NIS 0.533. The investors are European investment fund Alpha Capital Anstalt, hedge funds Clover Wolf and Clover Alpha, and the controlling shareholder of the company. The company says that it now plans to list its ordinary shares on Nasdaq.
  • Gett, a global corporate ground travel company announced it had raised $15 million to complete a $115 million funding round it had announced in June. According to the Israeli-founded company, it raised the additional $15 million to accommodate interest from new investor Pelham Capital Investments Ltd. and Gett’s existing investors. It said in a statement that the proceeds will be used to further accelerate the development of the SaaS platform and the company’s global expansion. The capital raised in June brought the company to a $1.5 billion valuation.
  • WhiteSmoke,

M&A/IPO

  • Playtika, mobile gaming company has held its initial public offering (IPO) on Nasdaq. The Herzliya-based company raised nearly $1.9 billion at $27 per share, above the planned range of $22-24 per share. Playtika said that the offering consisted of 18,518,500 shares of common stock offered by Playtika and 50,981,500 shares of common stock offered by an existing stockholder. Playtika said it will not receive any proceeds from the sale of shares by the selling stockholder. The underwriters have a 30-day option to buy an additional 10,425,000 shares of common stock from the selling stockholder at the initial public offering price.

 

  • Alcide, a startup, which developed a cloud security platform designed to provide DevOps, security, and engineering teams with simplified tools to manage and protect data centers against cyber attacks, is being acquired by US based cyber company Rapid 7 for $50 million.
  • UpRight, DarioHealth is making moves to grab a piece of the digital musculoskeletal market with the acquisition of Upright Technologies. The digital chronic condition management company agreed to acquire Upright for $31 million with $29.5 million paid in stock and $1.5 million in cash after deducting outstanding debt and making working capital adjustments. DarioHealth will issue approximately 1.7 million shares of common stock to Upright shareholders at the closing, which is expected to take place in early February. After the closing of the acquisition, Upright’s CEO and co-founder Oded Cohen will serve as Dario’s general manager of musculoskeletal product and will join Dario’s board of directors.
  • NRGene, an AI-based genomic company has completed its initial public offering (IPO) on the Tel Aviv Stock Exchange (TASE), raising NIS 100 million at a company valuation of NIS 370 million, after money. Leading Israel institutional bodies invested in the IPO.
  • Blender, a consumer lending startup Blender P2P Israel Ltd. is heading for an IPO on the Tel Aviv Stock Exchange, aiming to raise NIS 70 million (approximately $22 million) at a valuation of NIS 280 million ($88 million).
  • NextFerm, a food-tech company has completed its initial public offering (IPO) on the Tel Aviv Stock Exchange, raising NIS 30 million at a company valuation of NIS 115 million. Yokneam-based NextFerm also raised Nis 3 million from existing investors including Cider Holdings, Orgad Agricultural Cooperative, Ortal, Gadot, Arancia International, and Merage venture capital.
  • Novamed, Israeli drug delivery company Simplivia Healthcare Ltd.has announced that it has acquired 70% of diagnostics company Novamed at a company valuation of NIS 24 million. Simplivia, which is controlled by FIMI Opportunity Funds and operates out of Teva’s former Tevadaptor Kiryat Shmona factory, develops and manufactures closed system transfer devices to protect pharmacists, nurses, and other medical professionals in hospital settings from exposure to hazardous drugs, most often oncology drugs. They also ensure drug sterility to protect patients.