In this newsletter you can expect to receive Qumra's perspective on the market trends and developments. Something you won’t want to miss! Keep an eye on your inbox, coming soon…
Forgot password?
To request access or report any problems please contact chen@qumracapital.com
While it is difficult to predict what lies ahead for the hi-tech industry in 2023, it seems a certainty that the heady days of 2020 and 2021 – days when a due diligence process was measured in days or hours versus months, where massive multibillion-dollar super funds funneled money into broken business models, and growth was the only metric that mattered – are gone and won’t be returning.
Benchmarking and measuring Venture Capital performance has always been challenging. The metrics available are numerous with huge variability and VCs tend to highlight the ones that best fit their needs. manager doesn’t call the capital committed, its IRR may still be high but make no money for investors. So how can an investor evaluate the performance of a fund? Let’s take it from the top.
After years in which the enterprise enjoyed disruption in productivity, communication and collaboration solutions, it is time that the majority of the workforce, which was left behind, enjoy the same level of tools, for a whole new and engaging employee experience. When high tech meets low tech, good things happen!
To transform a conventional industry, one needs to have a deep understanding of the market, the customer needs, processes, work habits, or consumption patterns. Such understanding is achieved through the collection, aggregation, and smart use of data. Fortunately for us, crunching data, using AI and deep learning to analyze behavior and drive efficiency, is at the heart of Israeli startups. It’s our secret source of innovation and it’s what makes us not only start-up nation but also the data nation.
This is a new generation of entrepreneurs, all of which are oblivious to past glass ceilings. They are extremely confident in their abilities to build strong teams and are talented enough to compete with the world’s best companies and with innovative startups from Silicon Valley.
The more I worked together Vdoo, the more evident it became to me that a connection to JFrog would be powerful.
JFrog’s vision to become the leading company in the DevSecOps market and secure binaries flowing from the developers’ machines to the edge, together with Vdoo’s platform and technology for binaries’ security, would be a perfect match...
2020 showed us all just how unpredictable the world can be. A new world order and drove us globally into quarantine and a new virtual world.
Businesses of every size, in every industry, became even more dependent on technology, and for some, these times accelerated the adoption of digital technologies. But for all the benefits innovation brings, digitization also created risk at magnitudes never imagined before...
JFrog, Qumra’s second growth investment, is our second company to go public, and what an amazing IPO! JFrog’s IPO is one of the best software IPO’s ever!!! It received a 21 multiple on revenue, which is the highest multiple any public software company received to-date. If anybody had doubts about Israel’s ability to build world-class leading companies, that can scale and become multi-billion-dollar companies, then JFrog is proof that it is possible. Big time.
Last week was my last board meeting at Fiverr. Exactly Six years ago we made our initial investment in Fiverr, we led round C, investing $10M out of a $30M round. This was also Qumra’s first growth investment made in parallel to the first closing of the fund and therefore holds a special place in our heart...
It used to be that companies took an IPO or M&A route when reaching meaningful valuations. As the Israeli tech market matures, companies stay private longer and remain independent, while continuing to create significant shareholder value along the way. VC funds need to be creative in providing liquidity to their investors, without selling a company or taking it public prematurely and enabling future upside. This is how Qumra chose to do this:
I was 26 years old when I went on my first overseas corporate trip. I vividly remember the excitement of shopping for business attire and feeling that the door to the big guys' clubs had been opened for me. (Yes, it was always more guys than girls on these trips). The Marketing department was divided into those who flew to attend events and meet customers, and those who stayed home. There was no question for me where I wanted to be.
The introduction of the Carpool Lanes last October by the Ministry of Transport, together with construction work associated with the light rail transit system in Tel Aviv has suddenly changed my morning routine. What used to be a pleasant 30-minute drive from Herzliya to Tel Aviv has evolved into a frustrating 50-minute crawl which put me in a foul mood that threatened innocent bystanders. I found myself dreading this ride and wishing for a home office.
Well, fast forward to March 2020 and my wish was granted...
Essentially, the role of the COO, reflects the maturing Israeli tech market. With the evolvement of a growth market, there are numerous CEOs that have reached a point where they need a strong and skilled counterpart for general management in order to turn strategy into operational and financial success.
Every December, we make a mental list of new year’s resolutions; eat healthier, exercise more, have more patience for the kids, dedicate more time to friends, etc. Recently, when asked to speak about self-fulfillment in the digital age at a conference, it occurred to me that probably like many others, it has been a while since I thought about picking up a new hobby, or in general, investing in my own personal growth.
Over the years of being a VC investor, I came to the conclusion that there are two types of tech companies that I like investing in, those that disrupt an existing market with groundbreaking ideas or models and those that target a very small market or one that still does not exist, betting on its future exponential growth and their ability to dominate this market...
When Pavel Gurvich wants to illustrate micro segmentation for protecting complex hybrid cloud environments, he uses a simple example taken from the traditional Shipbuilders world. And that’s what I love about him. Using a down to earth, no frills approach, he instantly made me get it. Area security is not going to cut it anymore. Micro segmentation, which will isolate workloads is the future of security. It's that simple.
Due Diligence …. one of the less favorable tasks on the list of a startup’s CEO. Raising money, although a necessary milestone in the company’s life, forces CEOs to make room for a demanding process while continuing to successfully run their startup. But here is a perspective, consider this a great opportunity to gain independent and professional insight on how to improve your business operations and how to set the infrastructure for achieving the next level of scale.
The end of the year is a good time for reflection, to look back at what we had accomplished and to look forward to what we can expect next year. Personally, I pause to reflect on what it is that led to the evolution of Israeli late stage companies...
The realities of global expansion are complex. Product & market fit, laws & regulations, optimal corporate structure, international accounting, currency rates, political risks – it’s a long list to tackle. But among the top issues to consider is the importance of cultural differences and the role they play in successful communication that leads to operational efficiency and ultimately to achieving scale..
I read a lot of “Why We Invested” posts, and although there is total consensus in the venture market that we invest primarily in people, the “Why We Invested” posts almost always focus on the business, and not the people. I felt I had to dedicate the beginning of the post to the real reason why we invested in Talkspace. Below please find a description of the tremendous business that Oren and Roni built..
As a tech investor, I’m often asked which kinds of businesses tend to pique my interest. Time and again I find myself drawn to those overlapping with the sharing economy. Only recently have I asked myself why I find this concept so appealing, and I believe it’s because of how I was raised
Investing in tech companies for more than 20 years and training for Ironman competitions in my free time, I can’t help but recognize parallels between endurance athletes and the most successful CEOs in the tech world. I’ve drawn from my experience in both domains and outlined characteristics I’ve found common to both.
Winning over consumers takes an amazing brand story. One that inspires an emotional connection with its audience. With social media playing a key role in corporate communications, brands find that their employees, not the company, carry more weight in driving the narrative – with the CEO as storyteller in chief.