Israeli Startups Hit Hard by COVID-19 Financial Crisis
Over 50% of Israeli high-tech startups have reported that their operations will be discontinued within six months without additional funds and most companies generating sales are experiencing over a 25% decrease in their income, as the Coronavirus (COVID-19) generated financial crisis is hitting Israel’s technological world hard.
A survey conducted by the Israel Innovation Authority and Israel Advanced Technologies Industries (IATI) in mid-May among 414 high-tech companies in Israel found that 40% of high-tech companies reported that investors froze their funding, and half of the companies reported their banks are denying their requests for loans.
A total of 91% of companies have reported a slowdown in funding. Companies increased the rate of layoffs from 17% to 25% in April and into May.
With regard to wages, one-third of companies confirmed extensive wage cuts of over 15%. One-quarter of companies are considering such cuts.
National Instruments Acquires Israel-Based Data Analytics Startup OptimalPlus for $365 Million
OptimalPlus develops AI tools for the automotive, semiconductor, and electronics industries that provide real-time product analytics and extract insights from data across the entire supply chain.
Texas-headquartered automated test equipment company National Instruments Corp. (NI) has entered a definitive agreement to acquire Israel-based big data analytics startup OptimalPlus Ltd. in an all-cash deal valued at $365 million, NI announced Tuesday.
The company employs some 240 people, most of them in Israel, and has raised $79.5 million to date from investors including Pitango Venture Capital, Viola Group, Aviv Venture Capital, Evergreen Venture Partners, KKR (Kohlberg Kravis Roberts & Co.), and KLA-Tencor Corp. founder and chairman Ken Levy. In 2019, OptimalPlus’ revenue amounted to $51 million, according to NI’s statement.
Israeli Privacy Protection Startup D-ID Raises $13.5 Million
Israeli identity protection startup De-Identification Ltd. (D-ID) raised $13.5 million in a round led by AXA Venture Partners, the company announced Wednesday. Hyundai Motors, Pitango Venture Capital, Maverick Ventures, Mindset Ventures, Omron Ventures, AI Alliance, and others participated in the round. D-ID raised $4 million in 2018.
The company plans to use the new funds to increase its sales and marketing activities and continue investing in research and development.
D-ID’s AI technology produces photos and videos which are unrecognizable to facial recognition algorithms while keeping them visible to the human eye. D-ID enables companies, security agencies, and governments to comply with privacy regulations and protect biometric databases.
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