Welcome to the iAngels Monthly Deal Digest, a summary of corporate developments in the Israeli startup market.
This June we tracked 27 announced deals totaling approximately $560 Million, and 8 exits worth over $1.5 Billion.
IT & Enterprise Software and Life Sciences were the two top-performing sectors this month. Pagaya, an alternative asset manager utilizing data-driven investment techniques in the fixed income and alternative credit markets, raised $102m from a variety of international and Israel-based VCs, including Aflac Global Ventures and Viola Ventures. SQream, a provider of a data analytics, acceleration platform, that enables enterprises to gain insights from their massive data stores, raised $39.4m in Series B+ funding led by Mangrove Capital Partners and Shusterman Family Investments. Kitov, a clinical-stage company that advances therapies to overcome tumor-immune evasion and drug resistance in order to create successful, long-lasting treatments for patients with hard-to-treat cancers, raised $35m from healthcare-focused institutional investors.
On the M&A side, we tracked one major deal in the IT & Enterprise Software space. Spotinst (Spot), which revolutionizes the way companies consume cloud infrastructure services, using analytics and automation to deliver cost-efficient infrastructure in the cloud was acquired by NetApp for $450m. Looking at Initial Public Offerings (IPO), we tracked the largest deal being Vroom, a used car retailer, and e-commerce company that enables consumers to buy, sell and finance cars online, which IPO’d on the Nasdaq raising $468m from its public offering.
June 2020 Investment Highlights
- Opora, a company creating the next generation of Cyber Threat Intelligence technologies, raised $7m in seed funding from JVP and a consortium of private investors.
- Hunters.AI, the first autonomous threat hunting solution, searches attack techniques, and finds cyberattacks that bypass existing security solutions, raised $5.4m from YL Ventures and Blumberg Capital.
- Agamon, a solution that combines an advanced approach to NLU with a deep understanding of medical reports, raised $3m in seed funding from MMC Ventures, InHealth Ventures, Seedcamp, and Bayer G4A to help hospitals improve its processes by transforming clinical text into structured data.
- ADAM CogTech that develops technology that can identify a driver’s cognitive state has raised $2m from Mobilion Ventures, backed by the Mitsubishi Corporation and Delphi Technologies.
- InfiniDome Ltd., the GPS Security Company, announced a closing of $1.6m in Seed round funding and the opening of its Pre-series A round. Investors participating in the Seed round include Boundary Holding of India and Luxemburg, Next Gear Ventures of Israel, and Aston Partners of New York.
- CENS, which utilizes nanotechnology to increase the electric vehicle (EV) battery’s energy capacity while heavily reducing recharging time, announced that they landed a $1.5m investment led by British-Iranian investor Vincent Tchenguiz.
- Pudding.AI, an AI-backed solution that offers data-sourced insight for marketing personnel to create better and more educated social media campaigns, has received pre-seed funding of $500k from Nielsen Innovate Fund.
- Salt Security, Israeli-founded API cybersecurity company, has raised $20m in a Series A funding round led by Tenaya Capital, a US-based venture firm.
- Upsolver, an easy-to-use service for turning event streams into analytics-ready data with the scale, reliability, and cost-effectiveness of cloud storage, raised $13m from Vertex Ventures and JVP.
- Spike, which developed a mobile application that puts existing emails into a multimedia mobile messaging, chat-like interface enhanced with voice and video calls, raised $8m in a Series A round led by New York-based venture capital and private equity firm Insight Partners.
- ECOncrete, an Israeli engineering startup that is developing an environmentally-friendly concrete, designed for marine construction and artificial structures that promote the growth of sea life, raised $5m in Series A funding from Bridges Israel and Goldacre.
- Cynet, a cyber-security company that converges essential cybersecurity technologies that helps enterprises to identify security loopholes and threat intelligence, and manage endpoint security, has raised $18m in B+ round funding, led by BlueRed Partners, joined by strategic investors Deutsche Telekom and Merlin International, with additional participation from existing investors Norwest Venture Partners and Ibex Investors.
- Augmedics, a developer of augmented-reality, surgical-image guidance tools, raised $15m in Series B funding, led by its U.S. staff in addition to existing shareholders AO Invest and Terralab Ventures.
- Codefresh, the leader in Kubernetes DevOps tools, today announced $27m in new funding led by Red Dot Capital Partners with participation from Shasta Ventures and existing investors.
- Pixellot, an automated, sports video-production company, announced a new $16m funding round. Shamrock Capital Investors, an existing investor in Pixellot, led the latest fundraising round alongside participation from existing investors Grupo Globo and the Arkin Family. Israeli investment firm Altshuler-Shaham Group also contributed as a new investor.
- Global-e, provides technological solutions to international e-commerce websites, raised $60m from private equity firm, Vitruvian Partners.
- Electreon, a publicly-traded leader in developing and implementing wireless charging for electric vehicles in motion, raised $50m in a public-equity offering from some of Israel’s biggest institutional Investors led the investment, such as Migdal, Psagot, Mor, Excellence, and Halman Aldubi, and leading hedge funds Alpha, Safra, and Sphera, as well as Afcon Holdings.
- Artlist, which offers free licensed music, stock video clips, and sound effects for digital creative industries, announced this month that it had raised $48m in a financing round led by U.S.-based KKR and participated by previous investor Elephant Partners.
- Kitov Pharma, a publicly-traded company on the NASDAQ and TASE, has raised $35m in a public-equity offering from institutional investors.
- Zerto, a data recovery and cloud back-up company, has raised $33m in equity funding and another $22m in venture debt as part of an F round. Participants in the equity round include Poalim Capital Markets, the investment arm of Israel’s Bank Hapoalim, as well as existing investors Access Industries Inc., through its Israel investment arm ClalTech, 83North Ltd., Battery Ventures, Harmony Partners LLC, IVP (Institutional Venture Partners), Pitango Venture Capital, RTP Ventures, and U.S. Venture Partners.
- Mapi Pharma, a fully integrated, late clinical-stage biopharmaceutical company, received an injection of $20m from publicly-traded drug developer, Mylan.
- Celsius Network, a Bitcoin lending and loan platform, is raising $15m in an equity-crowdfunding round promoted by BnkToTheFuture.
- Weebit Nano, a memory-tech developer traded on the ASX, has upped its public-equity placement to $6.6m after witnessing strong demand. It also plans to raise a further $500k through a share purchase plan.
- CardiacSense, a Caesaria-based medical device company, has raised $6m in a round led by the Israeli crowdfunding investment platform, Together, and a group of Israeli and European strategic investors.
- OCON Healthcare, a company developing an innovative, hormone-free intrauterine-contraception platform, raised $2m in an in-house funding round, led by Pontifax VC, with existing investors Docor VC, and a private American family fund also contributing to the round.
M&A and IPOs
- OptimalPlus, a Holon-based big data analytics company, has been acquired by US-based, National Instruments (NATI), an automated tests and measurement company, for $365m
- CyberX, an IOT cybersecurity company with a patent for M2M-aware behavioral analytics and machine learning technology, was acquired by Microsoft for $165m.
- PolyPid, a clinical-stage biopharmaceutical company focused on developing, manufacturing and commercializing novel, locally administered therapies to improve surgical outcomes, has set terms for its NASDAQ listing to raise between $47m – $53m.
- Intucell, a Raanana-based, self-optimizing network (SON) company that was acquired by Cisco in 2013 for $475m, is being sold to Indian multinational HCL Technologies Ltd. in a $50m deal.
- Flash Networks, a leading provider of optimization solutions for the mobile internet, is being acquired by Toronto-based Volaris Group, an operating group of Constellation Software, for $20m.
- SaverOne, the world’s first system providing an effective solution for cell phone distracted driving, has submitted its documentation for a public listing on the TASE in order to raise $7.5m
On behalf of everyone at iAngels, I’d like to thank you for tuning in to our deal digest. If you’d like to receive a version directly to your inbox, please subscribe below.
The iAngels Team
Two weeks left to score early bird savings at TC Sessions: Space 2020
NASA just made history by landing a spacecraft on an asteroid. If that kind of technical achievement carbonates your glass of Tang, join us on December 16-17 for TC Sessions: Space 2020, an event dedicated to early-stage space startups. We’ve launched early-bird pricing, and $125 buys you access to all live sessions, plus video on […]
NASA just made history by landing a spacecraft on an asteroid. If that kind of technical achievement carbonates your glass of Tang, join us on December 16-17 for TC Sessions: Space 2020, an event dedicated to early-stage space startups.
We’ve launched early-bird pricing, and $125 buys you access to all live sessions, plus video on demand. Don’t procrastinate. Buy your pass now before the early-bird reenters Earth’s atmosphere (and prices go up) on November 13 at 11:59 p.m. (PT).
More ways to save: Go further together with early bird group tickets ($100) — bring four team members and get the fifth one free. We also offer discount passes for students ($50) and government, military and non-profits ($95). Looking for out-of-this-world exposure? An Early Stage Startup Exhibitor Package ($360) includes four tickets, digital exhibition space, a pitch session to attendees and the ability to generate leads. Bonus savings: Extra Crunch subscribers get a 20 percent discount.
TC Sessions: Space is an unrivaled opportunity to learn from, connect and network with boundary-pushing founders, investors and officials from NASA, the Aerospace Corporation, the U.S. Air Force and leading space companies spanning public, private and defense sectors.
We’ve packed the conference with outstanding presentations, fireside chats and interviews. Plus, you’ll find breakout sessions on specialized topics, audience Q&As with Main Stage speakers and the expo area for partners and early stage startups.
Here’s a taste of the topics but keep an eye on the agenda, because we’ll add more speakers and sessions in the coming weeks.
Asteroid Rocks and Moon Landings
Lisa Callahan, vice president/general manager of commercial civil space at Lockheed Martin Space, discusses all aspects of scientific and civil exploration of the solar system — from robots scooping rockets from the surface of galaxy-traveling asteroids, to preparing for the return of humans to the surface of the Moon.
Sourcing Tech for Securing Space
Lt. General Thompson is responsible for fostering an ecosystem of non-traditional space startups and the future of Space Force acquisitions, all to the end goal of protecting the global commons of space. He’ll discuss what the U.S. looks for in startup partnerships and emerging tech, and how it works with these young companies.
Bridging Today and Tomorrow’s Tech
Corporate VC funds are a key source of investment for space startups, in part because they often involve partnerships that help generate revenue, and because they understand the timelines involved. SpaceFund’s Meagan Crawford and Lockheed Martin Ventures’ J. Christopher Moran discuss how these funds fit in with more standard venture to power the ecosystem.
TC Sessions: Space 2020 takes flight on December 16-17, but we’re starting our early bird countdown right now. Great savings disappear in two weeks on November 13 at 11:59 p.m. (PT). Buy your early bird passes today and celebrate your savvy shopping with a tall glass of Tang.
Is your company interested in sponsoring TC Sessions: Space 2020? Click here to talk with us about available opportunities.
Leon Black offers more details on ties to Jeffrey Epstein – Update
Apollo chief executive raised the issue after questions swirled about his relationship with the late financier
Leon Black, the billionaire chief executive of Apollo, on Thursday, 29 October, offered a history of his ties to the late financier Jeffrey Epstein, his most detailed public account yet of a relationship that sparked renewed concern among his firm’s shareholders and fund investors in recent weeks.
Epstein was indicted last year on federal sex-trafficking charges involving underage girls.
On a call to discuss the private equity firm’s third-quarter earnings, Black said he wasn’t eager to speak publicly about his personal business, “but this matter is now affecting Apollo, which my partners and I spent 30 years building, and is also causing deep pain for my family.”
The Apollo chief reiterated that he paid Epstein millions of dollars annually to provide professional services to his family partnership and other family entities, “involving estate planning, tax, structuring of art entities and philanthropic advice” from 2012 to 2017.
He said there was substantial documentation of the work and that it was vetted by law firms, accounting firms and other advisers.
“There has never been an allegation by anyone that I engaged in any wrongdoing, because I did not,” Black said. “And any suggestion of blackmail or any other connection to Epstein’s reprehensible conduct is categorically untrue.”
Black also re-emphasised that Apollo never did business with Epstein, who died by suicide in jail in August 2019, the New York City medical examiner found.
The speech came after the three Apollo board members to who make up the New York firm’s conflict committee last week hired law firm Dechert to conduct an independent review into Black’s business with Epstein. Black said he asked for the review and is cooperating fully.
The moves were prompted by a New York Timesreport on 12 October that Black had paid Epstein at least $50m — more than previously known—in the years after Epstein was convicted in 2008 of soliciting prostitution from a teenage girl.
The article didn’t present any evidence that Black participated in inappropriate activity, but it sparked concern among some of Apollo’s public-pension fund investors and has weighed on the company’s shares.
Apollo’s shares rose briefly after Black’s statement but later fell about 1% in morning trading Thursday, 29 October.
Black, who co-founded Apollo in 1990, said he met Epstein around 1996 when Epstein was advising a number of prominent clients on estate-tax planning. The adviser had been named a trustee of Rockefeller University and served on the Council on Foreign Relations and the Trilateral Commission.
In his network were “luminaries I respected and admired, including several heads of state, heads of prominent families in finance, a US treasury secretary, accomplished business leaders, Nobel laureates, acclaimed academicians and noted philanthropists,” Black said.
The Apollo chief said he wasn’t aware of Epstein’s criminal conduct until it was reported in late 2006 that he was under investigation by state and federal authorities in Florida.
In 2007, Epstein signed a federal nonprosecution agreement, which has since been scrutinised, to resolve that investigation, pleading guilty the following year to two state prostitution counts. He spent much of his 13-month sentence outside prison.
After his release, Epstein went back to his financial-advisory work and once again began associating with prominent people from finance, academia, science, technology and government, Black said. He said he didn’t learn the extent of the further allegations about Epstein’s conduct in 2018 until after he had already stopped working with him.
“Like many other people I respected, I decided to give Epstein a second chance,” he said. “This was a terrible mistake. I wish I could go back in time and change that decision, but I cannot.”
Whether Black’s explanation and the independent investigation will be enough to satisfy the firm’s jittery investors remains to be seen. Working to Apollo’s advantage is the fact that big pension funds, which typically need to invest large sums of money, have relatively few options for where to do so. And Apollo’s funds have continued to offer them strong returns.
Any defections among investors could theoretically threaten the firm’s goal set last year of reaching $600bn in assets over the next five years. For now, growth in the metric is chugging along. The firm said that assets climbed to $433.1bn in the third quarter, up from $413.6bn in the prior quarter and $322.7bn a year earlier.
Apollo chief financial officer Martin Kelly said the firm’s assets were durable even if the independent review of Black has an impact on fundraising. He noted that 60% of Apollo’s assets are in permanent-capital vehicles—pools of money that don’t need to be constantly replenished—and 90% are either in permanent-capital vehicles or funds with five years or longer from inception.
Kelly said the firm expects some of its investors will pause new commitments until the independent review has been completed. But even if Apollo raises no additional third-party capital this year, its fundraising of $18.4bn from third parties through 30 September already falls within its typical annual range of $15bn to $20bn, he said.
“We have incredibly long and durable relationships with our clients,” Apollo co-founder Josh Harris said on the call. “We’re deeply in contact with them, and obviously they are awaiting the results of the review Leon discussed.”
In response to an analyst question about how long the review would take, Apollo said it hoped the process could be completed by the end of the year, but that it was in the hands of the conflict committee.
Apollo also reported lower net income and distributable earnings for the quarter. It posted net income of $272.4m, or $1.11 a share, down from earnings of $363.3m, or $1.63 a share, a year earlier. The decline was primarily driven by a bigger loss attributable to noncontrolling interests.
Fee-related earnings were a bright spot, climbing 30% year-over-year.
Apollo invested a net $20.9bn across its various investment platforms during the quarter, a metric that reflects investments in vehicles beyond traditional drawdown funds.
The firm said it would pay a dividend of 51 cents per share versus 50 cents a share for the third quarter of 2019.
Write to Miriam Gottfried at Miriam.Gottfried@wsj.com
Alternative Investments/ESG: Brunel Allots £1.2B ($1.55B) Sustainable Mandate To Three Managers
The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion). Brunel is one of eight pooled Local Government Pension Scheme funds in the U.K.
Alternative Investments/ESG: Brunel Allots £1.2B ($1.55B) Sustainable Mandate To Three Managers
The Brunel Pension Partnership Limited (Brunel) launched a new Sustainable Equities Fund for local authorities’ pension funds.
The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion).
Brunel is one of eight pool Local Government Pension Scheme funds in the U.K.
The sub-fund mandate is on behalf of 10 local government pension scheme funds. They wanted a listed equity portfolio with a pronounced skew in favor of ESG considerations. The emphasis would be on companies with positive ESG performance rather than negative exclusions. (Institutional Asset Manager)
Multi-manager sustainable fund
Brunel shortlisted the three managers from 70 expressions of interest.
“The three managers we appointed share a broad investing style and a prioritization of sustainability, yet their approaches are also different enough to provide clients with the diversification they were looking for,” said David Cox, Head of Listed Markets at Brunel.
“We were delighted to find managers who share our understanding of sustainability, embedding it deep into their culture and investment processes,” says David Jenkins, Portfolio Manager for the Sustainable Equities Fund. “This portfolio, therefore, meets our aspiration to go beyond traditional Responsible Investing and ensure that the managers are engaged with the companies and are investing in them for positive reasons, not simply focusing on negative exclusions.”
The portfolio is significantly underweight to the GICS energy sector. It also features an aggregate carbon intensity that is significantly lower than its benchmark, the MSCI All Country World Index.
The selected managers will integrate ESG considerations into their whole investing process. Their focus will not be to manage ESG risks – rather to positively seek out exposure to companies on a sustainable path.
In the process, they would also generate a suitable financial return.
Related Story: Insurers Take a Fancy To ESG & Sustainability ETFs (Invesco)
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