Fundbox Team (Facebook)
Fundbox, an Israeli Fintech startup and a unicorn, is continuing the recent trend of Israel Startup Nation firms being forced to make cutbacks. The company has laid off 150 of its 360 employees in Israel and the U.S., or 40% of its overall workforce.
On Monday, Snyk, an Israeli cybersecurity startup in the field of cloud native application security, revealed that it was forced to make cutbacks in its workforce. The company is laying off 198 of its employees, or about 14% of its workforce. Synk previously let go of another 30 of its employees in June.
Also on Monday OrCam Technologies Ltd, an Israeli medtech startup that offers new technology for the blind, was reported to be laying off 62 employees, or 16% of its total workforce.
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This is all caused by the ongoing war in Ukraine, which has led to high oil prices and international sanctions on Russia and its oligarchs to punish the country for the invasion and occupation of Ukraine. This has caused uncertainty among investors and a situation where people are holding onto their money right now and not investing it.
Founded in 2013, Fundbox is a financial services platform powering the small business economy with innovative credit and payment solutions. The company boasts that it offers fast and intuitive access to business credit and that its goal is to unlock the potential of small businesses by giving them financial agility and peace of mind.
Fundbox is an AI-powered financial platform for small businesses that offers “fast and intuitive” access to business credit. In its seven years of operation it has connected with over 300,000 small businesses in the U.S.
Fundbox CEO Prashant Fuloria explained the reason for the cutbacks in a letter to company employees. “This is a very painful change, especially for coworkers who are directly impacted. However, it is a necessary step to strengthen our business fundamentals so that we can execute on our mission to help small business owners with their financial needs.
“Here is some context around the decision. Fundbox serves small businesses through working capital and cash flow solutions, both directly and through our partners. As macroeconomic trends continue to impact the small business economy, we too face material business headwinds. It is clear that these economic challenges will last for longer than we initially expected.”
