Day of the Deal: Four Israeli Startups Raise a Combined $107 MillionSep. 15, 2016
For Israel’s Startup Nation, Tuesday was a big deal, or more exactly five big deals: Four startup companies raised a combined $107 million from investors while a fifth company was sold for 300 million-shekel ($79.3 million) valuation.
All four of the startup raising capital pulled in double-digit investments, with cyber-security company Claroty exiting stealth mode after two years of operations to announce it had raised $32 million.
Not far behind, Cato Networks, a provider of cloud-based network security, said it raised $30 million. Ctera said it secured $25 million to expand it cloud-computing offers and Optimove, another cloud-computing startup, said it raised $20 million – the first time it had ever raised capital from outside investors.
The flood of fundraising round comes at a time of growing concern that the high-tech boom is starting to recede. A survey released last week found that, the number of first-round investments in startups had fallen in the first half of this year for the first time since 2011 to 29%.
First-round investments are a barometers of investors’ appetite for startup risk and ensure there’s a pipeline of companies for later investment.
Claroty, which had been operating in secret for the past two years, said it raised its $32 million from the U.S. funds Bessemer Venture Partners, Innovation Endeavors – which run by Google chairman Eric Schmidt -- Marker LLC, Red Dot Capital Partners and Japan’s Mitsui & Company.