Cosmetics company Il Makiage is acquiring NeoWize, an Israeli data and artificial intelligence (AI) startup. Il Makiage says that the purpose of its acquisition is "to support aggressive growth and the brand's international ecommerce activity," and to improve its online profits.
The acquisition price was not disclosed, but informed sources said that it was contingent on NeoWize's revenue in the coming years and its ability to reach $1.5 million. NeoWize is the second startup that Il Makiage is acquiring in a month.
NeoWize's technology focuses on algorithms based on active machine learning and data, with the aim of increasing sales by offering a personalized online experience. "By using big data and prediction, we change the content displayed to the consumer on websites and improve the user experience and sales," NeoWize said.
"In contrast to our competitors' products, the content selected for display to the user does not merely attempt to improve the likelihood of a sale; it also improves the quantity of information we get from the user's response to the displayed content," NeoWize claims. The company explains that this information "enables us to learn about the user's preferences and desires far more quickly, and to introduce substantial personalization even for new users, even in the first session." NeoWize says that it can improve sales by 20-30% for its customers from the first day.
NeoWize has raised just $1 million to date, but the company declares that the money was enough for it to achieve a profit, and that it did not need to raise more. NeoWize said that the investment was from Y Combinator and known Israeli angel investors.
NeoWize's founders are IDF Intelligence Unit 8200 veteran Omer Nevo, and Yoav Cafri and Ronen Ness, both veterans of the IDF Center for Encryption and Information Security. Cafri was one of the founders of Israeli startup KitLocate, acquired by Russian giant Yandex. Nevo and Cafri will continue working at NeoWize: Nevo as VP R&D and Cafri as chief data scientist. Ness left the company 18 months ago.
Published by Globes, Israel business news - en.globes.co.il - on November 24, 2019
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