Israeli Fintech Unicorns taking the World by Storm
The year 2021 is on track to be remembered as one of the most successful years for Unicorns. Unicorns, companies valued at over $1 billion are rapidly joining the fintech sector. During the first quarter of 2021 alone, the tech sector welcomed 121 unicorns into the market. This is a huge jump from the previous year (2020) where there were only 159 for the whole year.
Fintech, more than any other sector has grown to unprecedented levels. A majority of Fintech’s success in the recent year can be related to the coronavirus. With the world digitally transforming, the year 2020 brought a demand for new online transaction technology, which has pushed Fintech solutions to the highest demand. Since the coronavirus pandemic, more and more people are consuming goods from the comfort of their own homes. As a result of increased online consumerism, both Fintech and E-commerce sectors have seen massive growth.
The Israeli Fintech sector is responsible for a total of 11 unicorns. Between September 2020 and January 2021, 1.4 billion dollars funneled into the Israeli fintech sector. This is compared to the $340 million that was invested throughout the first 6 months of 2020.
Below is a breakdown of the 11 big Israeli Fintech Unicorns that were born this past year.
Fundbox- established in 2013 by Yuval Ariav, Eyal Shinar, and Tomer Michaeli. Fundbox was created to provide a AI-powered financial platform for small businesses. Fundbox is valued at an estimated 1.5 billion USD, and has raised $453.5 million dollars. Today the company has over 400 employees.
Next Insurance- This company was established in 2016 by founders, Nissim Tapiro, Alon Huri, and Guy Goldstein. Next Insurance provides small business insurance solutions. With over 200 employees, Next insurance is valued at $4 billion and has raised over $880 million. Some of Next insurance’s largest investors include Nationwide insurance and the American Express Venture group.
Payoneer- Payoneer was founded in 2005 by Yuval Tal. Payoneer aims to provide business management software. Since 2005 the company grew to be valued to a whopping $3.3 billion with having raised $282 million. Today the company has over 500 employees.
Rapyd- Established in 2015 by Arik Shtilman, Arkady Karpman, and Omer Priel Rapyd provides its customers with a multi-currency mobile wallet. Since 2015, the company has grown to an estimated worth of $2.5 billion with having raised a total of $478 million.
Tipalti- With the aim to provide automation for supplier payments, Tipalti was created in 2010 by Chen Amit. Tipalti has roughly 200–500 employees and is estimated to be worth $1.3 billion. The company has also raised $256 million in investments.
Melio- Melio a relatively new company that provides a B2B payment platform for small businesses has an estimated value of $1.3 billion with over $250 million in investments. The company was established in 2018 by Ilan Atias, Matan Bar, and Ziv Paz. Today the company has between 200–500 employees.
Sunbit- Sunbit, created in 2016 aims to give flexible payment solutions for retailers. Founders Arad Levertov, Ornit Dweck-Maizel, Tal Riesenfeld, and Tamir Hazan employ 50–200 employees. Sunbit is valued at $1.1 billion dollars with over $160 million in investments.
HoneyBook- HoneyBook a company that was established in 2013 by Shadiah Sigala, Dror Shimoni, Naama Alon, and Oz Alon. HoneyBook was created to provide Business Management Softwares. Today the company employs 50–200 employees and is valued at over $1 billion with $229 million in investments.
Earnix- Created in 2001 by Sammy Krikler, Earnix has created mission-critical systems for global insurers and banks. Today the company is valued at over $1 billion with $100.5 million in investments
Papaya Global- Established in 2016 by Ofer Herman, Eynat Guez, and Ruben Drong, Papaya Global aims to provide a payroll and workforce management tool for global enterprises. Today, the company is valued at $1 billion with over $90 million in investments.
Lili- Established in 2018 by Liran Zelkha, and Lilac Bar David, Lili provides mobile banking and tax tools for freelancers. Although the company is small and only employes 11–50 employees, it is valued at over $1 billion and has raised $80 million in investments.
