Checkmark Caps Giant Week of Startup Fundraising With $84m Round

Cyber-security startup is joined by rounds of $15 million and $25 million by Redis Labs and Qwilt.

Inbal Orpaz
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An IDF course for cyber-defense in Ramat Gan. Credit: Alon Ron
Inbal Orpaz

Checkmarx, a cyber-security startup, said Thursday that it raised $84 million in funding from New York-based venture capital firm Insight Venture Partners, capping a week that saw Israeli tech companies raise nearly $150 million in new funding.

Redis Labs, an Israeli-U.S. startup, announced that it had secured $15 million in a round led by Bain Capital Ventures and Carmel Ventures and, a day earlier, Qwilt, whose equipment enables companies to manage demand for online video, raised $25 million in a round led by Disrupt-ive, including an investment by Google Chairman Eric Schmidt’s Innovation Endeavors.

Earlier in the week, Yotpo, which uses customer reviews to promote products, completed a $15 million financing round led by the Marker LLC fund, and irrigation technology company CropX raised $9 million from Finistere Ventures, Innovation Endeavors, and GreenSoil Investments. 

Checkmax, whose product tests software for security vulnerabilities early in the development process, when it is easiest to apply fixes, said the investment would be used to accelerate growth and to buy stock from existing shareholders.

But Checkmax CEO Emmanuel Benzaquen said that neither he nor co-founder and Chief Technology Officer Maty Siman were leaving the company. “Some of the shareholders are selling some of their shares. Our plan is to remain independent and to grow,” he said.

New York-based Insight has more than $10 billion under management and invested in over 200 companies, including Chinese online giant Alibaba and social media firm Twitter. In Israel, it has invested in and the website-building company Wix.

Founded in 2006, Checkmarx employs more than 150 people – 100 of them in Israel – and counts, SAP, Coca Cola and the U.S. Army among its 700 customers. Until now, Checkmarx had raised $14.5 million in funding.

Redis, which offers extremely fast database capabilities to enterprises, said the $15 million it raised on Thursday brings the total capital secured to date to $28 million since it was formed in 2011 by Ofer Bengal and Yiftach Shoolman. The company now employs 50 people in Tel Aviv and Silicon Valley and will expand by another 30, two-thirds of them in Israel, focused on marketing and sales.

Redis offers database-as-a-service products, whose customers use it as they need it. The company says it has 4,900 paying customers, including Docker, Hotel Tonight and Bleacher Report, and its paid-customer base has grown 116% over the last year.

Qwilt, headquartered in Redwood City, California, said its latest $25 million fundraising brings capital secured to date to $65 million, from Accel Partners, Bessemer Venture Partners, Marker LLC and Redpoint Ventures, which also contributed to the round. Sources estimated that the latest round valued the company at $200 million.

The company reportedly had revenues in the tens of millions of dollars last year with 80 customer installations and expects to double sales this year. It employs 100 people, about half of them in Israel, a number that is now expected to grow by 30 with the new capital.

Qwilt was founded in 2010 by CEO Alon Maor, Vice President for Marketing Dan Shahar, Giora Yaron and Yuval Shahar. The latter two sit on the board. Qwilt’s technology saves cable companies bandwidth by placing their most popular content on local servers near users’ homes and offices.

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