August 7th — Tuesday Tech Update

Apologies for the delay. Writing this from Montreal, Canada where I’ll be 7 hours behind Israel-time for the rest of the week. Scroll down to catch up on the latest Israel tech news including 150,000 Ukrainian developers and Kindergartens in a box.

But first, a hikers guide to the 21 known local species of Israeli scorpion available here. This is particularly timely as I was doing some camping near the Megido forest in Israel near Haifa and turned over a rock to discover a scorpion which was not happy I had picked up his house. Thankfully he did not look like the one in this picture.

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Startup Nation Central, the non-profit that was born out of the book Startup Nation highlighting the reasons Israel is a leading country in startup formation, has released its Q1 2018 report on the state of the startup industry. Some highlights include the fact that the number of startups established in Israel has decreased from 2014 to 2017, and more startups have closed their doors during this same period. “We believe it is a sign of the ecosystem becoming more mature.” said Aviv Alper, head of research at Startup Nation Central. The number of startups raising “scale-up rounds”, $10–20 million has doubled. The dollar amount of money raised has increased by 33% during this period as well. Median size of funding rounds have gone from $2 million to $5 million. The number of IPOs has decreased from 10 to 3. Finally, 117 multinational firms have set up R&D centers in Israel during this period. Source

This R&D number is astounding and a truly demonstrative of the global interest in Israeli innovation. Some of the other numbers seem to be a reflection of two much money chasing too few deals, and obviously companies are staying private for much much longer thus the weak IPO data. Why less startups? Maybe the fever is subsiding. Or maybe there are so many strong startups here at the moment that people are taking jobs as opposed to striking out on their own.

MassChallenge, an international accelerator program with a very strong Israel program, has narrowed down 525 candidates to 10 startups. Some of the companies that made it:

• Air Doctor, which connect tourists who became ill or injured abroad with recommended and accessible doctors in the country
• Genetika+ provides patients with personally adjusted drugs for treatment of depression in order to improve the chances of success
• MonitHer has developed a home device for early diagnosis breast cancer through monthly ultrasound monitoring.
• Flatspace has developed a system that makes it possible to convert a two-dimensional architectural design into a three-dimensional models and soon VR
• MyPart has created a platform for crowd-sourcing of art that enables up-and-coming artists to create content to be included in works by other artists
• RouteValet offers efficient transportation routes combining public and private transportation.
• Ziroh Labs makes it possible to obtain cloud Internet services more safely.
• Qubeicon is developing a miniature chip as a substitute for a battery in a mobile device or wearable health monitoring device that uses light, kinetic energy, and heat energy for charging.
• Solutum is developing an environmentally friendly replacement for plastic.
• ThinkZone, an impact venture building kindergartens and elementary schools from a “kit” to empower women entrepreneurs to set up cheaper schools in India.

Source

In Other News

15,000 Ukrainians are currently working for Israeli high-tech companies out of Ukraine. The Ukrainian government is building a has a delegation with a mission to increase this number to 150,000. SourceJob of the Week PayFinder, a Tel Aviv-based company that customizes your online merchant payment solutions based on industry and site requirements, is looking to hire a CEO. “Someone who lives and breathes payments and can help us take this to the next level”. Feel free to email me for intro or referral.

If you have a job or other opportunity of some kind, let me know and I will happily include it in future emails!Tech Deals

Skyline AI, an Israeli property discovery startup for real estate investors, raised $18 million in Series A funding. TLV Partners and seed backer Sequoia Capital co-led, and were joined by JLL Spark. Axios

Mimecast Ltd. (Nasdaq: MIME), a UK data security company, announced that it has acquired Israeli cybersecurity company Solebit for $88 million in cash. Globes

Mantis Vision, a Israeli 3D mobile sensing developer, announced that it has completed the acquisition of US company Alces Technology Inc. No financial details were disclosed but sources suggest the price tag was $10 million. Mantis Vision raised $55 million last month. Globes

BlueVine, an Israeli fintech company, has raised another $12 million from new investors M12, Microsoft’s venture fund, and the venture arm of insurance and financial services provider Nationwide. Globes

Nobio, a company developing bacteria-resistant materials for the medical devices and dental health markets, has raised $3.5 million led by the aMoon fund. Globes

Formlabs, a Boston-based 3D printer startup, has announced the completion of its sixth financing round. The company raised $15 million at a $1 billion company valuation. Israeli VC Pitango Venture Capital participated. Formlabs is led by Israeli Dr. Natan Linder, co-founder and chairman. Globes

DoublX, an Israel-based drag and drop platform for creating content and websites adapted to VR spectacles, has raised $2 million from Benny Landa, who recently raised $300 million for his nanography digital printing company. Globes

AudioBurst, an Israeli AI-powered voice search platform, has raised $3 million from Nippon Broadcasting System Inc. Globes

DiA Imaging Analysis, an Israeli artificial intelligence medical imaging analysis startup, has closed a $5 million financing round led by Connecticut Innovations with participation from Defta Healthcare, as well as a grant from the Israel Innovation Authority. Globes

OneVentures Pty, an Australia-based venture fund, is partnering with Viola Credit, the growth and venture lending arm of Israel-based Viola Group, to launch a $78 million (A$100 million) venture credit fund for the Australian market. Calcalist

Visa announced an undisclosed investment and partnership with Israeli alternative financing startup Behalf. Calcalist

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