According to the latest IVC-ZAG Israeli High-Tech Capital Raising Survey, Israeli high-tech companies raised $1.26 billion in Q2/2017 (April through June), the second-largest amount in five years.
The report shows that 21 deals above $20 million accounted for 55 percent of the total amount, VC-backed deals went up from the quarterly three-year average, and there was an improvement in late-stage capital raising ($889 million) following three weak quarters.
Software was the leading sector, with $482 million (38% of total) while life sciences was second, with $387 million, or 31% of total capital in Q2/2017.
The average financing round grew significantly in the second quarter, reaching $8 million, compared with the $6.8 million average of the previous quarter, according to IVC Research Center in Tel Aviv.
Graph courtesy of IVC-ZAG
Let’s take a look at financing rounds in July, the start of Q3.
Topping the list is Israeli website navigation company WalkMe, which raised $75 million in a round led by Insight Venture Partners. WalkMe was founded in Tel Aviv in 2011 and has offices in New York, North Carolina and California.
Tel Aviv- and San Francisco-based cybersecurity company Deep Instinct raised $32 million in Series B funding from CNTP, NVIDIA, Coatue Management, and other investors.
Gong.io of San Mateo (California) and Tel Aviv announced a $20 million Series A1 round for its AI and machine learning conversation intelligence platform for sales teams. The investment round was led by existing investors Norwest Venture Partners and CheckPoint cofounder Shlomo Kramer, joined by new investors Wing Venture Capital and NextWorld Capital.
Digital farming company Prospera of Tel Aviv closed a $15 million Series B round led by Qualcomm Ventures and joined by Cisco Investments, ICV, and existing investor Bessemer Venture Partners. Prospera will use the new funds to accelerate its global expansion and broaden its services to different crops in both indoor and outdoor environments.
Spotinst cloud-computing platform raised $15 million in an A round led by Intel Capital and Vertex Ventures. The company is based in San Francisco with R&D in Tel Aviv.
Intuition Robotics of Ramat Gan, developer of Elli-Q active aging companion and other social companion technologies, announced a $14 million A-round investment led by Toyota Research Institute with participation of OurCrowd, iRobot, Maniv Mobility, Terra Venture Partners, Bloomberg Beta and private investors.
Dune Medical, headquartered in Caesarea, raised $12.3 million from Canepa Healthcare, ATON Partners and the Kraft Group toward further developing its RF spectroscopy platform that differentiates cancerous from healthy tissue based on electromagnetic properties.
BioLineRx of Modi’in, a clinical-stage biopharmaceutical company focused on oncology and immunology, received a $9.6 million investment from BVF Partners, its largest shareholder.
Yokneam-based Rapid Medical closed a $9 million Series B financing round led by Israel’s BRM Group and China’s Shanghai Israel Investment Fund with the participation of Winnovation Capital and Gefen Capital. The company develops minimally invasive stroke treatment and prevention products.
Cybersecurity company Votiro Cybersec of Tel Aviv closed a $9 million round from Australian investors including Divergent Group and Redfield Asset Management.
Syte.ai of Tel Aviv, a fashion-tech company that developed a visual search engine for fashion products, raised $8 million in Series A financing led by NHN Ventures with the participation of Naver Corp., Line Corp., Magma VC, Remagine VC, KDC Ventures and NBM Ventures.
Applitools of California and Tel Aviv, which develops AI-powered automated visual testing and monitoring for mobile, web and native apps, raised $8 million from Sierra Ventures, Bessemer Venture Partners, Magma Venture Partners, iAngels and La Maison.
The same amount was raised by Atlas Dynamics, a provider of drone-based data solutions for professionals, based in Latvia with half its management in Tel Aviv, from private and institutional investors. Atlas will showcase its solutions at InterDrone 2017 in Las Vegas on September 5-7.
OwnBackup, a software-as-a-Service (SaaS) application backup and restore vendor headquartered in New Jersey with an R&D and support center in Herzliya, closed a $7.5 million Series B round led by Insight Venture Partners with participation of Innovation Endeavors, Oryzn Capital and Salesforce Ventures.
Big-data analytics software developer Somatix of Herzliya closed a $6 million Series A financing round led by Digitalis. The Somatix platform enables physical and emotional medical symptoms to be observed from hand gestures.
Genoox, a Tel Aviv startup that wants to make it easier for medical professionals to use genomic data in patient care, raised $6 million in a seed round from Inimiti Capital Partners and a Series A round led by Glilot Capital Partners.
UVeye of Tel Aviv, Kadima and New York raised $4.5 million in seed funding from Ahaka Capital and SeedIL toward building computer vision and machine-learning technology to help detect security threats by scanning the underside of passing vehicles.
The same amount was raised by DBMaestro of Petah Tikva and Massachusetts, from Vertex Ventures, StageOne, Lool Ventures and iAngels toward launching its next-generation database automation solutions.
BrandTotal of Tel Aviv has raised $2 million in a seed round led by Glilot Capital Partners with the participation of KDC Media Fund, the investment arm of Israeli TV broadcaster Keshet, and Dick Clark Productions. The company helps marketers and brands gain valuable insight into their competitors’ “dark marketing” campaigns.
AppsVillage apps creation platform, which turns a Facebook page into a branded sales app, raised $1 million in seed money to use toward expanding its platform to American small to medium businesses and hiring new employees. The company was founded in 2016 in Tel Aviv.
Hargol FoodTech, a portfolio company of The Trendlines Group in Misgav, completed a financing round of $600,000 from Sirius Venture Capital in Singapore and SLJ Investment Partners in The Netherlands. Hargol has developed a sustainable protein ingredient from commercially farmed grasshoppers.
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