Israeli startups raise mega-towers amid recession

The past few months have seen approaching inflation, fewer investment dollars and major layoffs at many Israeli tech companies.

While last year the $100 million mega round became an almost common occurrence, fundraising has been more modest lately – and even those who raised big in the recent past aren’t making it. always good.

One example is prop-tech company Reali, which ceased operations this month, putting 140 people out of work, despite a $100 million Series B in September 2021.

Nonetheless, several Israeli companies have reported significant investor dollars over the past month.

Raanana-based DriveNets topped the list with a $262 million Series C round led by D2 Investments with participation from current DriveNets investors including Bessemer Venture Partners, Pitango, D1 Capital, Atreides Management and Harel Insurance Investments & Financial Services.

DriveNets offers communications service providers and cloud providers a new way to build networks, dramatically increasing their profitability by changing their technology and business models. The company will use the huge cash injection to develop future technology solutions, seek new business opportunities and expand the company’s global operations.

Property management platform Guesty for the short-term rental and hospitality industry has raised $170 million in Series E capital from Apax Digital Funds, MSD Partners and Sixth Street Growth. Existing investors Viola Growth and Flashpoint also participated in the round.

“Despite an exceptionally challenging fundraising climate, the funding Guesty has raised is a vote of confidence in the travel and short-term rental ecosystem, and an endorsement of our pioneering technology and market-leading position. hotel and property management software industry market,” said Guesty co-founder and CEO Amiad Soto. With 14 offices serving clients worldwide, Guesty is headquartered in Tel Aviv.

Human resource management platform HiBob raised a $150 million Series D round just 10 months after raising a $150 million Series C round. The latest round is backed by sixth-year HiBob’s streak of triple-digit revenue growth, with continued support from investors including General Atlantic, Bessemer Venture Partners and others.

Revolutionizing the work experience for HR professionals, managers and employees, HiBob is used by more than 2,500 multinational companies – including Cazoo, Gong, Hopin, Monzo, Happy Socks, Fiverr and VaynerMedia – to accelerate hiring, retaining talent, increasing employee engagement, improving skills and otherwise managing dynamic and distributed workforces.

Talon Cyber ​​Security of Tel Aviv, a provider of secure enterprise browsers, announced a $100 million Series A funding round led by Evolution Equity Partners, with participation from Ballistic Ventures, CrowdStrike’s Falcon Fund, Merlin Ventures, SYN Ventures and other investors.

“We’ve built the team and the technology to redefine and power security for the future of work – a future where security is delivered naturally through the most widely used application in business: the browser,” said the co-founder and CEO Ofer Ben-Noon. Talon won the Innovation Sandbox competition at the RSA 2022 conference and has established partnerships with CrowdStrike and Microsoft.

Pliops founders, from left to right: Aryeh Margi, president; Uri Beitler, CEO; and Moshe Twitto, technical director. Photo by Benny Gamzo

Pliops, which provides data processors to accelerate and simplify the operation of cloud and enterprise data centers, has closed a $100 million Series D funding round led by Koch Disruptive Technologies (KDT).

“The ability to monetize data faster and get much more while paying much less is every organization’s top priority, especially in times of market volatility,” said Uri Beitler, Founder and CEO of Pliops. The company was founded in 2017 and named one of the top 10 hottest semiconductor startups in 2020 and 2021.

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