Israeli cloud networking startup Teridion announced today that is has completed a $9 million Series B financing round, of which the first $6 million was raised in 2017. The company has raised $35 million to date including this latest closing. The current financing round was led by Jerusalem Venture Partners (JVP) with the participation of all previous investors including Magma Venture Partners and Singtel innov8.
Teridion has developed a solution that could be called the Waze of the Internet: a network of virtual routers in the cloud, which direct data transmissions by enterprises on the swiftest and most reliable routers. The company 60 employees, of whom 50 are in its Israel development center in Petah Tikva and the remainder in Silicon Valley. The company plans hiring another 10 employees in Israel. Sources close to Teridion estimate that it has annual revenue of more than $5 million.
Teridion CEO Saar Gillai said, "People working in our offices have to understand both the cloud and networks and that is a very untypical combination because historically most of the cloud has served applications. Today people are beginning to run infrastructure services on the cloud like us but it requires much higher reliability than that required for applications.
He added, "When an application doesn't work you reset it but you cannot reset an infrastructure. Today the cloud has also become stable enough and our technology allows it. We do for networks what the cloud has done for servers over the past decade. Here the technological aspect of the company plays a role - how to use cloud infrastructures in order to build networks without any connect to a certain cloud provider."
To this end, Teridion has developed a technology which is composed of two parts - sensors and routers. "One part is the software sensors that we can put in every public cloud and use them to build a real time map of the Internet. We know where there are and aren't jams and where the connections are best. We know this from machine learning algorithms that can estimate the bandwidth and the quality of the band in every place. We connect our routers to this information, which is also running in the cloud and we decide which way to transmit data so that it will travel on the fastest and most reliable route.
The company was founded in 2013 by Elad Rave and Doron Samelson who have since left Teridion.
Since Gillai has joined the company he has led a change in Teridion's business model and the way it approaches the market. He said, "Over the past three years we have focused product sales on SaaS companies that provide major Internet services. Their service passes through our network in the way that is transparent to the user and allows them to transmit data in the fastest and most efficient way. In the past year, we have seen an opportunity to use this technology in a broader market - the enterprise market. We began to develop this aspect about a year ago and it has become central to our current business. We have our first several customers and I think that within a year it will become about 50% of our revenue."
Published by Globes, Israel business news - en.globes.co.il - on April 4, 2019
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