Verizon Backs Public Transit Software Startup Optibus
The $12 million investment round was led by Israel-based Pitango Venture Capital, Verizon Ventures and venture capitalist Sir Ronald Cohen
17:1507.11.17
Israel-based startup Optibus, which develops and sells software to optimize mass transit systems, has raised a Series A funding round totalling $12 million, the company announced Tuesday.
The investment was led by Verizon Ventures, by Israel-based Pitango Venture Capital, and by venture capitalist Sir Ronald Cohen.
Public transit (illustration) Optibus previously raised $2.5 million in total equity funding.
More by Calcalist:
- High-Resolution Radar Startup Arbe Robotics Raises $9 million
- Convertible Rounds are Not Faster and Cheaper
- Investments in Israeli-linked Startups Growing in Size, Report Says
Public transit (illustration) The company provides cloud software that uses artificial intelligence and deep learning technology for planning and managing in public transportation. In use in 200 cities around the world, Optibus’ software collects real-time data and makes recommendations for transit operators.
“Our system can tell companies which driver should drive which bus, when repairs are needed—essentially managing the lives of the drivers and companies in every step of their job,” said Amos Haggiag, co-founder and CEO of Optibus in an interview with Calcalist.
“Most transit companies utilize spreadsheets and people with expertise, but they are not as efficient as a software solution that can optimize the work,” said Mr. Haggiag. “We save companies 15% in costs on average. Funding for public transit can cost $100 million for a small city and billions for very large cities.”
Founded in 2014 and headquartered in Tel Aviv, Optibus employs 43 workers today, mostly in Tel Aviv. The company said it is planning on opening sales offices in the U.S. and Europe in anticipation of growth in those markets.
Currently, Optibus has contracts with customers in Israel, the U.S., Austria, and Chile, each valued in the hundreds of thousands of dollars.
“I expect that we will soon sign deals in the millions of dollars with larger companies,” Mr. Haggiag said.
Optibus provides cloud software that uses artificial intelligence and deep learning technology for planning and managing in public transportation. In use in 200 cities around the world, Optibus’ software collects real-time data and makes recommendations for transit operators.
