Six months after global stock markets started rising, venture capital funds have resumed investing in startups after two years of stagnation Israeli companies are once again raising large amounts. Today Israeli cybersecurity company Coro announced the completion of a $100 million Series D financing round led by One Peak, with participation from existing investors Energy Impact Partners and Balderton Capital.
One Peak's managing partner David Klein will join Coro's board. Coro has developed a cybersecurity platform purpose-built for small and medium-sized enterprises (SMEs). JVP, one of the first investors in the company did not participate in this financing round, even though it is one of the biggest shareholders in the startup with an estimated stake of more than 33%.
Earlier this week, Tel Aviv-based cloud-native, AI-powered, multi-asset class investment accounting platform developer FundGuard raised $100 million, as more money flows into the coffers of Israeli startups despite the war. As far as is known, the money raised by Coro will all be invested in the company and not for buying shares from employees and investors. The valuation at which the round was completed has not been disclosed but it is estimated at $800-900 million.
Under the radar, Coro has grown into one of the Israeli privately-held cybersecurity companies with the largest revenue, with annual recurring revenue (ARR) estimated at $100 million and growing at a rate of 200%-300% per year. The company declined to confirm these figures.
Coro has 350 employees, about half of whom are in Israel, with most of the other half at its development center in the UK. The company mainly operates in the UK market but plans to expand into European markets including the UK, France, Germany and Spain.
Coro, based in Tel Aviv's Rothschild Boulevard, operates differently from most Israeli cybersecurity companies, which mainly approach large corporations with thousands of employees, with a product specializing in a very narrow market segment, on the assumption that these customers will pay high subscription fees over many years. Coro targets the SME market such as retail chains, law firms, garages and clinics that are seeking a single package with all types of cybersecurity protection. In this market, Coro is competing with Microsoft, which has developed cybersecurity packages for many small businesses at relatively low costs.
Coro is proud of its cybersecurity package which includes server and cloud security, end device security and monitoring threats. In this way, unlike many other Israeli cybersecurity companies, which develop a product that solves one problem in an enterprise, Coro has developed a comprehensive platform on which new products can be added in a modular way. The company is interested in expanding in the end devices market and in other areas that it does not detail as well as to make acquisitions.
Coro cofounder and CEO Guy Moskowitz said, "Now that Coro is established as a cybersecurity powerhouse for the SME market, the next step on our journey is to offer this radical approach to as many organizations as possible. The best way we can enable this is through our world-class global network of partners, who can launch Coro’s ease of use and simplicity at scale, bringing the current chaos of managing cybersecurity to a halt."
Published by Globes, Israel business news - en.globes.co.il - on March 28, 2024.
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