Israeli networking software co DriveNets raises $208m

Ido Susan,  Hillel Kobrinsky / Photo: Uri Alon, Globes

The company, which allows service providers to build networks with higher capacity and scale, at a much lower cost, raised the money at a valuation of over $1 billion.

Israeli networking software company DriveNets announced today that it has completed a $208 million Series B financing round at a valuation of more than $1 billion. The round was led by new investor D1 Capital Partners with significant follow-on investments from Bessemer Venture Partners and Pitango as well as new investor Atreides Management.

The company, which was chosen as "Globes" startup of the year in 2019, has raised $325 million to date, after a $110 million financing round two years ago. DriveNets has 320 employees at offices in Israel, the US, Japan and Romania, and the new funds will allow the company to open more offices worldwide and enter new markets. 

Ra'anana-based DriveNets will use the investment to continue to offer service providers and a radical new way to build their networks with higher capacity and scale at a much lower cost. DriveNets Network Cloud is already deployed as the core routing solution for AT&T, one of the largest networks in the world, demonstrating the scale and efficiency of a fully virtualized, disaggregated network. The funding will also allow DriveNets to expand to new countries, responding to the surge in demand for more connectivity and infrastructure that can be easily scaled in a cloud-native fashion.

DriveNets Network Cloud uniquely supports the complete virtualization of network and compute resources, enabling communication service providers and cloud providers to meet increasing service demands much more efficiently than with today's monolithic routers.

The company was founded in 2016 by telecom entrepreneurs Ido Susan and Hillel Kobrinsky. Susan told "Globes" that the company already has revenue of $50-100 million. 

Susan said, "Disaggregating the network architecture, as DriveNets has done at AT&T, demonstrates that DriveNets Network Cloud is changing the scale and economics of the most sophisticated networks in the world. We are excited about the opportunities the future holds for us and have plans to disrupt more areas in the market. Our goal is to expand our product offerings and our reach to more leading operators and cloud providers."

Published by Globes, Israel business news - en.globes.co.il - on January 27, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Ido Susan,  Hillel Kobrinsky / Photo: Uri Alon, Globes
Ido Susan, Hillel Kobrinsky / Photo: Uri Alon, Globes
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