Business in Brief: Israel’s Cybertech Gains Despite Int’l Slowdown

Radware buying cyber startup Seculert; Fintech company Earnix raises $13.5 million.

Netanyahu delivers a speech at a Cyber Security Conference in Tel Aviv, January 31, 2017.
Netanyahu delivers a speech at a Cyber Security Conference in Tel Aviv, January 31, 2017. BAZ RATNER/REUTERS

Israel’s cybertech gains despite int’l slowdown

Israel’s cybertech market grew last year, despite an international slowdown in the field. Israel has the world’s second-largest cyber market, second to the United States. The slowdown in cybertech transactions stems from investors’ concerns that the market is saturated, stated CB Insights. Yet Israeli startups did not experience this trend in financing. Last year, 83 new cyber companies were founded here, versus 81 in 2015. An increasing percentage of last year’s startups were founded by younger teams. Some 36% of the startups founded last year have already raised seed money; this percentage is considered high. (Yoav Leitersdorf, Ofer Schreiber and Iren Reznikov)

Fintech company Earnix raises $13.5 million

Earnix, an Israeli provider of predictive analytics software for the financial services industry, said Monday it raised $13.5 million from Jerusalem Venture Partners, Vintage Investment Partners and Israel Growth Partners (IGP). The funding, which brings the total amount raised to $25 million, will be used to accelerate Earnix’s growth, including geographic expansion, deeper penetration into the banking sector and investment in new products. Earnix appointed as its chairman Reuven Ben Menachem, founder and former chief executive of Fundtech., a financial software provider acquired by D+H in 2015 for $1.25 billion. Haim Shani, general partner of IGP, was named a director. Shani is the former CEO of Nice Systems and former director-general of Israel’s Finance Ministry. (Reuters)

Radware buying cyber startup Seculert

Cyber security company Radware is buying cyber startup Seculert, which develops cloud-based software to protect institutional networks against hacks and data theft. Radware did not publicize the price. To date, $15 million has been invested in the startup since its founding in 2010, according to IVC. Radware, which has a product to defend web-based applications against DDos attacks, stated that the acquisition advances its attack deflection system by enabling it to make use of computer learning and big data analysis tolls. While Radware said it did not expect the acquisition to affect 2017 revenue, it said it would invest in the product and adapting it to customers. (Omri Zerachovitz)