2019 has been a great year for Israeli startups—and it’s not over yet. According to a recent report from IVC Research Center and ZAG S&W Zysman, Aharoni, Gayer & Co, Israeli companies raised a record $3.9 billion in the first half of the year. Specifically, Q2 was a spectacular quarter, with a record $2.32 billion raised through 125 deals, the largest amount in any quarter since 2013. The team here at Clearview Partners is going to cover the Israeli startups which helped propel the Startup Nation to new heights.
Here are the 3 Israeli startups that raised the most money in 2019:
Lemonade: $300 million
Lemonade is changing the way people buy insurance; actually, it’s changing the entire insurance model. Its premise is that the traditional insurance model is conflicted—when you make a claim and get paid, it’s in direct opposition to the insurance company’s goal, which is to make money. Lemonade flips the entire system on its head by charging a flat rate and using that money to pay out any claims you make. The leftover money is paid to a charity of your choice, thereby transforming insurance from “a necessary evil into a social good.” Because giving back is part of the company’s business model, it’s registered as a Public Benefit Corporation and a Certified B-Corp.
As for the app itself, Lemonade uses artificial intelligence to craft personalized insurance plans, which you can get in 90 seconds. Receiving a claim takes a bit longer—a whole 3 minutes. With a solution to a real problem, it's no wonder Lemonade raised a staggering $300 million.
Monday.com: $250 million
Monday.com is a team management tool that allows team members to plan, track, and collaborate, all on the same, intuitive interface. It includes features like timelines, file storage, calendars, and more, which means that customers get easy-to-read data at their fingertips. The overall goal is to help boost team productivity, and it’s a great way to make sure that no task falls through the cracks. Monday.com easily integrates with Google Calendar and Drive, DropBox, Excel, Slack, Trello, and more, and it syncs seamlessly between desktop and mobile. There are currently over 70,000 teams that use Monday.com, including We Company (formerly WeWork), McDonald’s, Wix, and the Carlsberg Group. It’s also no surprise that many large tech companies such as We Company use this platform. Monday.com is no stranger to working in this space as the company spun out of Wix, where they were an internal tool for the website hosting giant’s workflow.
Monday.com is not a new company; it was founded in 2012 as DaPulse Labs and changed its name in 2017. That’s when things really started taking off; in 2018, the company raised $50 million and was given a credit line of tens of millions of dollars from Bank Leumi. This year’s $250 million raise is no surprise given Monday.com’s proven track record and its upward trajectory, which give this new unicorn a valuation of $1.9 billon.
Innoviz: $170 million
Innoviz creates high-performance LiDAR sensors and perception software that enable the mass production of autonomous vehicles. Its two products are InnovizPro and InnovizOne. InnovizPro is a LiDAR for automotive, mapping, robotics, and other applications, and InnovizOne is an automotive-grade LiDAR sensor that provides 3D sensing for Levels 3-5 autonomous driving. If this stuff sounds advanced, it is. It’s cutting-edge technology that very well may be the future of driving.
Innoviz raised $132 million earlier this year in a series C round of financing led by China Merchants Capital, which it then extended until it hit $170 million. This round followed a $65 million series B that took place in September 2017 and a $9 million series A in 2016.
Other significant deals in 2019
Elbit Systems, which sells international defense electronics, raised $186 million through a round of PIPE (Private Investment in Public Equity). The company did this by obtaining commitments from Israeli investment institutions to buy 1,408,921 shares of NIS of 1 each for NIS 472 ($132) per share, amounting to $186 million. Cellebrite Mobile, which offers data extraction, transfer, and analysis for mobile devices, raised $110 million through its acquisition by Japan’s Sun Corporation.
What’s in store for the next two quarters of 2019?
2019 was a standout year for Israeli startups, especially Q2, which had 10 mega deals (investments above $50 million). It’s a hard act to follow, but even if Q3 doesn’t yield the same results, there’s a good chance that 2019 will be able to surpass the total capital raised in 2018, which was $6.4 billion.