Glassbox raises $100 million at a half-billion valuation in Tel Aviv Stock Exchange IPO
The Israeli company experienced accelerated growth during Covid-19 and believes TASE offering will be a stepping stone for future Nasdaq IPO
Israeli software startup Glassbox, which has developed an analytics platform for web and mobile applications, announced on Thursday that it has raised $100 million in its initial public offering on the Tel Aviv Stock Exchange (TASE). The company has a post listing valuation of close to $500 million.
Glassbox has developed a system that allows organizations to track user app activity and to spot user trends and patterns, thereby improving and streamlining the services they offer. The coronavirus (Covid-19) pandemic has assisted the company’s business shift toward the more intensive use of online services and has highlighted the need for businesses to familiarize themselves with different user patterns and behavior, understand whether their services work or not, where there are issues, and where their product is more effective. Glassbox’s product allows organizations to improve their customer user experience where the software spots faults and provides quick answers through a real-time window.
Glassbox CEO Yaron Morgenstern. Photo: Glassbox
Glassbox is already supporting over one trillion web and mobile customer journeys annually for the world’s best-known brands across numerous industries, including four out of 10 of the world’s largest banks (by market cap), the world’s largest hotel chain, and some of the world’s largest retail, travel, and healthcare providers. With the new funding, Glassbox plans to expand its global presence and reach - both organically and through acquisition - beyond its current customer base, while continuing to add new talent and invest in continued technology innovation for its SaaS (software-as-a-service) platform.
Glassbox CEO Yaron Morgenstern told CTech that the company plans to double its workforce, which currently numbers 230 employees, including increasing its Israeli headcount from 100 to 200 people.
“This is a significant milestone for Glassbox that represents our commitment to growth in the near term and provides the resources to fuel innovation towards our unique AI-driven vision for Experience Intelligence,” said Morgenstern. "I don't think this brings us any closer or takes us further from going public in the U.S. That remains on our roadmap and this is something that will ensure we will be more prepared for that when it happens as we will have already met all the regulatory requirements to go public in Israel.
"I can't say exactly when we will go public in the U.S., but we are aiming to reach $100 million in annual revenue in the next 2-4 years and that is a landmark that will show that we are ready to be a big public company," Morgenstern added.
Glassbox has raised $72.5 million so far. The last investment round took place in April 2020, when the company raised $40 million in a round led by New York-fund Brighton Park Capital Management, L.P., with the participation of Updata Partners, Ibex Investors, CEIIF, and Geffen Capital.
Glassbox was founded by Yoav Schreiber, who serves as the CEO, Yaron Gueta, CTO and VP of R&D, and Hanan Blumstein, the Chief Customer Success Officer. The offices are located in Petah Tikva in Israel, as well as in London and New York.
“This IPO funding will allow Glassbox to maintain its impressive momentum as a high growth SaaS company in a rapidly evolving digital market,” said Brian Abrams, Chairman of the Glassbox Board of Directors. “Not only could Glassbox become a leading player in its space, this IPO could also trailblaze an exciting new path for Israeli companies on their way to Nasdaq.”