Israeli startup Verbit’s valuation doubles in six months to $2 bn

 Israeli startup Verbit’s valuation doubles in six months to $2 bn

Israeli transcription services provider Verbit has mopped up $250 million in a new funding round that doubled its valuation to $2 billion, just six months after it raised $157 million to enter the unicorn club of tech startups.

Existing California-based investor Third Point Ventures led the Series E round, Verbit said in a statement.

Other returning investors in this round were Sapphire Ventures, More Capital, Disruptive AI, Vertex Growth, 40North, Samsung Next, and TCP Capital.

Verbit is also backed by Sweetwood Capital, among other investors.

The company has raised more than $550 million since inception. This includes debt financing it raised from the Silicon Valley Bank and secondaries transactions totalling $100 million.

As part of the new round, Robert Schwartz, managing partner at Third Point, will join Verbit’s board.

The startup was founded in 2017 by chief executive officer Tom Livne, Eric Shellef and Kobi Ben-Tzvi. It has developed an AI-based transcription solution which it says is cheaper and more reliable than similar products.

Verbit is based out of Tel Aviv, New York, Palo Alto and Kiev, and employs 450 people. Apart from these full-time employees, it also has a network of 35,000 transcribers who work on a freelance basis as well as 600 captioners.

The company said that, with the latest financing, it will increase investment in product development and continue its vertical and geographical expansion.

Verbit, which works with more than 1,600 clients, also plans to pursue merger and acquisition opportunities to add scale and new capabilities to enhance its value to media, education, corporate, legal and government clients.

Aman Malik

The Capital Quest