Israeli fintech firms are all the rage these days. The Israeli startups in fintech keep on bringing in the big bucks and some are already unicorns. The month of January alone saw 3 such firms in Startup Nation rake in a mammoth amount in new investments including one new unicorn.
Fintech is a term that refers to any new tech that assists with money transfers. It could be something designed for the use of banks, or a program that assists businesses in collecting payments. And Israel is ripe with fintech startups.
Earlier this month, Israeli fintech startup Pagaya, ahead of its initial public offering IPO, increased its private investment public equity (PIPE) financing in its upcoming SPAC merger with EJF Acquisition Corp to $350 million. This is up from a previous PIPE of $200 million. Additionally, Pagaya expects up to $288 million in gross proceeds that it will receive from EJFA’s cash in trust.
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Founded in 2016 by CEO Gal Krubiner, Yahav Yulzari – a former Israeli soccer star — Avital Pardo and CEO Gal Krubiner, Pagaya Investments is a global financial technology company with new ways to handle institutional asset management. Focusing on fixed income and alternative credit, the company offers a variety of discretionary funds to institutional investors (including pension funds and sovereign wealth funds), insurance companies and banks. It boasts a suite of “unmatched artificial intelligence technologies and state-of-the-art algorithms delivers an exceptional, scalable performance edge in the digital lending space.”
Israeli fintech startups also deal with the cybersecurity end of the business. Israeli blockchain security startup Redefine raised $11 million in a Seed round in January that gave the company a $50 million valuation.
Redefine is a pioneer in Defi security for institutional investors. Like the verb DEFY, this emerging industry challenges old finance and presents new opportunities. This opens the door for users to earn high yields on their crypto assets, take out loans, trade derivatives and provide liquidity. Redefine, as an Israeli fintech startup, has developed a smart platform that automatically analyzes risk, monitors market developments in real-time and safeguards capital in the event of a cyber attack.
And then there is Israeli fintech startup Personetics, a global provider of data-driven personalization and customer engagement solutions for banks and financial services providers. In January, The Israeli startup raised $85 million of growth funding invested from Thoma Bravo, a leading software investment firm, in December.