Four Israeli Startups Nab $320 Million in New Funds

Fundraisers led by $176 million round by fintech firm Fundbox

Dick Costolo, former CEO of Twitter, attends the Allen and Co. Sun Valley media conference in Sun Valley, Idaho, U.S., July 10, 2019.
\ BRENDAN MCDERMID/ REUTERS

Three Israeli startups and a fourth U.S. startup founded by Israelis said they had raised a combined $319.5 million in new capital on Tuesday.

By far the biggest of the takes was by Fundbox, which develops technology for business-to-business payments. The startup, with headquarters in San Francisco and research and development offices in Tel Aviv, said it raised $176 million in equity and secured a $150 million credit line it can use to lend to businesses.

While consumer payments via credit cards and other methods have developed rapidly enabling businesses get their money quickly, companies can wait a month or more to be paid explained CEO Eyal Shinar. Fundbox offers them immediate payment in exchange collecting interest until the actual payment from buyers comes through.

The round included Allianz X, Healthcare of Ontario Pension Plan, MUFG Innovation Partners, and Arbor Ventures, as well as major existing Fundbox investors including Khosla Ventures, General Catalyst and Spark Capital Growth. Including the latest round, Fundbox has raised a total of $440 million.

Tipalti, whose technology automates corporate payments to suppliers, said it raised $76 million in a round led by Zeev Ventures. Among the others was 01 Advisors, a fund founded by Twitter’s former CEO and chief operating offer, Dick Costolo and Adam Bain, respectively.

Tulip, which has developed a manufacturing app platform, said it raised $39.5 million. The round was led by a Tulip customer, DMG MORI, a German manufacturer of machine tools, joined by the venture capital funds Vertex Ventures, NEA and Israel’s Pitango. Proceeds will be used to expand in the small and medium size enterprise market in Europe, the Middle East and Africa and Japan.

Tulip will partner with DMG MORI, whose customers will be able to customize Tulip apps to orchestrate the production process on their DMG MORI machine tools,.

Founded by Israelis Natan Linder and Rony Kubat and based in Massachusetts, Tulip will open an office in Munich to support its alliance with DMG MORI and expansion in Europe.

D-Fend Solutions, an Israeli maker of technology that allows the user to take control of an enemy’s drone, nabbed $28 million in new funding. Claridge Israel led the round with participation by existing shareholder Vertex Israel.

The company’s technology is designed for use in urban environments or airports, where military counter-drone technologies risk collateral damage and other disruptions.

D-Fend’s system identifies rogue drones and intercepts them safely by taking over their flight control links and landing them in a designated safe zone.