Lightico, an Israeli startup that offers an enterprise-consumer interaction platform, and Israeli-founded cybersecurity company Cyren are the two latest Israel Startup Nation firms to be in trouble due to the worldwide financial crisis. Lightico reportedly will lay off 25% of its workforce, about 20 people and Cyren has already sent all of its 121 employees home.
Founded in 2014, Lightico declares its mission is to empower businesses to create “streamlined experiences in the last mile of the customer journey, where customers want to get things done, now.”
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Lightico boasts that its next generation platform for digital customer interactions empowers businesses to collect forms, documents, e-signatures, photos, and consent to disclosures and to verify ID instantly, even while they have customers on the phone.
Lightico CEO Zviki Ben Ishay explained the layoffs to Calcalist saying “We were the first to lay off employees in 2022 and this helped us reach the end of the year. Now we see that the situation is not improving and we must reach a path to profitability. We must control our own destiny and when the market recovers we can once again raise funds and recruit employees.”
Founded in 2021, Cyren boasts that the company protects more than a 1 billion users around the world from sophisticated and emerging email, malware, and web attacks every day. The company says its embedded threat detection, threat intelligence and inbox security solutions help enterprises, service providers, and technology companies prevent breaches and eliminate countless hours of incident response.
In a statement, Cyren explained its situation saying that the layoffs came, “in response to current market conditions and associated challenges with raising additional capital.”
“In the absence of additional sources of liquidity,” added Cyren in the statement, “management anticipates that the company’s existing cash and projected cash flows from operations will not be sufficient to meet the company’s working capital needs in the near term. The company continues to assess all of its strategic options, including potential asset monetization or liquidation. In the event that the company determines that its liquidity will not allow it to meet its obligations as they become due or that additional sources of liquidity will not be available, the company may need to pursue options available under applicable insolvency laws, including winding up its operations.”