Goldman Sachs Leads Investment in Israeli Firm Redis Labs

Database tech company announces total of $44 million in fourth-round fundraising

A Goldman Sachs sign is seen above the floor of the New York Stock Exchange shortly after the opening bell in Manhattan, January 24, 2014.
Lucas Jackson/REUTERS

The Israeli company Redis Labs, a database technology company, announced Monday that it had wrapped up $44 million in fundraising, its fourth funding round, with a lead investment coming from Goldman Sachs Private Capital Investing. Also participating were prior investors including Carmel Ventures, Bain Capital Ventures and Dell Technologies Capital.

Although it doesn’t reveal its private financial data, the company said that in the first half of this year it experienced continued growth. As a result of the firm’s newest injection of capital, company officials expect to recruit about 50 new employees this year for various development positions as well as for project management jobs. Redis Labs said that it has more than 70,000 customer accounts.

Speaking to TheMarker, Bengal, Redis Labs’ CEO, said the company was structured like a large corporation, with the option to go public, but he did not rule out merging with another firm in the future. “The intention in any event is to build a large company. We are working in an infrastructure field, comparable to what for many years Oracle did and is still doing,” he said, referring to the California-based multinational. “Oracle still leads in the field of databases, but in recent decades, new kinds of applications have arrived and the former databases aren’t really appropriate for that.” Redis Labs is one of three leaders in its field, which also includes MongoDB and DataStax, he said.

Redis Labs, which has a workforce of roughly 130, about 75 of whom are in Israel, was founded in 2011 by Ofer Bengal, its CEO, and Yiftach Shoolman, its chief technology officer. Its official headquarters is in Mountain View, California and its research and development center is in Tel Aviv. Before the current round, the company had raised $86 million.

The name Redis is a reference to an open-source in-memory data store developed in 2009 by Salvatore Sanfilippo, who heads the company’s Redis code development efforts.