World

Venture capital Insight has earned billions of dollars from Israeli Monday.com and WalkMe IPOs

Monthly.com celebrates its IPO on June 10, 2021 on the Nasdaq.

Source: Nasdaq

In April, Insight Partners Jeff Horing jumped on a plane to Israel for breakfast with the tech CEO. It was also an opportunity to visit his company’s first international office, which opened in less than two years.

Currently, the CEOs of two of these companies are visiting him in New York. They are actually trying to ring the bell on the Nasdaq as Israeli high-growth companies are lined up to hit the public market.

Last week, software as a service (SaaS) vendor Monday.com held an IPO and closed on Friday with a market capitalization of $ 8.2 billion. This week, Israeli software company WalkMe, with technology designed to simplify enterprise software and applications, will be unveiled at a valuation of up to $ 2.6 billion.

Insight is the largest investor in both. The company owns a 43% stake in Monday.com and controls a 32% stake in WalkMe. The combined ownership of both companies is currently worth about $ 3.9 billion.

“Israel has long been a startup hub and a center of activity,” Horing wrote in an email in response to a written question. “But these start-ups are expanding successfully at a faster pace.”

Money is flooding Israeli technology. The country’s start-ups raised $ 5.37 billion in the first quarter. This is more than double the previous year and 89% above the record period of the fourth quarter. Report from IVC and law firm Meitar..

Game developer Playtika, Based in Herzliya, Published in January With a market capitalization of $ 10.6 billion, it is Israel’s fourth most valuable publicly traded technology company, according to FactSet. Monthly.com is ranked 5th and WalkMe is ready to be in the top 10.

For insights Start of Israeli operation In late 2019, we opened our first office outside the United States since its establishment in 1995. However, Insight has invested in Tel Aviv and its surroundings for over 20 years.

Horing said the company made its first deal in Israel in 2000.He emphasized Enigma, Manufacturer software developer, and network virtualization company Shunra Acquired by Hewlett-Packard, As two initial investments.

“I’ve always loved visiting Israel, eating great food in small market restaurants and spending hours discussing different technologies and SaaS strategies,” says Horing. “My team and I often spent countless hours traveling between Israel, getting to know entrepreneurs, and working with portfolio companies for weeks at a time. “

Prior to Monthly.com, Insight’s marquee investment was in a website creation software company. Wix, Published in 2013. Insight jointly $ 40 million round In 2011 12% stake At the time of IPO.

Wix’s share price has since increased 17-fold, giving it a market capitalization of $ 15 billion. This is second only. Check Point Software Among Israeli high-tech companies.

“Wix was Insight’s basic investment in Israel,” said Horing. Wix co-founder Avishai Abrahami also joins Monday.com’s board of directors. “We have co-invested in many Israeli transactions over the years,” said Horing, along with Wix operations managers Abrahami and Nir Zohar.

Acquisition of a portfolio of Israeli companies

The most obvious detail on the Monthly.com cap table is the size of your Insight stakes.

Generally, when a venture-backed company goes public with a multi-billion dollar valuation, the top companies hold less than 30% of the outstanding shares, often much less.

Insight achieved 43% with a unique approach. Insight 7 months before opening Tel Aviv office in February 2019 Purchased most of the fund portfolio Held by an Israeli company called Genesys Partners, the partners set out for other ventures.

Among its funds, which closed in 2009, Genesis was investing in a seed and Series A funding round on Monday.com. Insight first appeared in 2017 as part of the $ 25 million Series B.

After acquiring the contents of the Genesis Fund, Insight was able to consolidate the holdings of the two companies and build a stake now worth $ 3.1 billion. Genesis was also an early investor in two other Insight-backed companies, the online music learning company JoyTunes and the business intelligence company Sisense.

Monthly.com co-founder and co-CEO Roy Mann told CNBC that Insight is taking advantage of the major changes that are taking place in Israeli technology.

“They had a very strong belief in Israel and the Israeli ecosystem,” Mann said in a post-IPO interview. “The industry as a whole has matured to a level where entrepreneurs want to set up big companies and keep them for a long time. Insights recognized it and early on to go back and forth between so many great Israeli companies. . “

Halling joined co-founders Mann and Elandinman on Thursday when ringing the Nasdaq opening bell. The company also has 250 employees from cities across the United States.

Horing has the opportunity to do that again this week for the Walk Me IPO. In 2017, Insight $ 75 million investment At WalkMe. After two more rounds of funding, Insight has built a $ 750 million worth of 32% stake in WalkMe’s IPO range cap.

According to Horing, Insight now has 80 “management experts” in Israel working with portfolio companies and has expanded to Tel Aviv to take over the previously occupied space. JFrog,this Published At Nasdaq last year.

For the most exciting thing that Halling has recently come out of Israel, he said he has no shortage of opportunities to spend money on his work.

“Israel is firing on all cylinders,” he said. “Of course, cyber is a powerful sector, but it’s far more widespread in a wide range of SaaS, infrastructure, fintech, gaming and ad tech groups.”

to see: JFrog CEO on the company’s public debut and outlook

Venture capital Insight has earned billions of dollars from Israeli Monday.com and WalkMe IPOs

Source link Venture capital Insight has earned billions of dollars from Israeli Monday.com and WalkMe IPOs

Back to top button