Even before its establishment: The Israeli company that received investment promises worth $1.5 billion
Ribon, a cybersecurity startup that has not yet been officially established, has received investment promises worth up to $1.5 billion in an unusual tranche-based fundraising structure. Founders Ehud Schneorson and Idan Nurik secured commitments from funds such as Sequoia, General Catalyst, and Wynn, based on their track record from Paragon.
Ribon, an Israeli cybersecurity startup that has not yet been officially established, has received investment promises worth up to $1.5 billion in an unusual fundraising structure known as "tranches." The founders, Ehud Schneorson and Idan Nurik, along with Lt. Col. D. who is being discharged from the IDF, secured commitments from several leading venture capital funds from Silicon Valley. The first tranche, reflecting a valuation of $100 million, is led by Sequoia Founders Fund and Zack Frankel; the second tranche, valued at $500 million, also includes Wynn Fund; and the third tranche, valued at $1.5 billion, is led by General Catalyst. The company is expected to raise $150-200 million even before its establishment, based on the founders' track record, which previously included the founding and sale of Paragon for $900 million. Ribon is developing an AI-based sovereign cloud system for governments, competing with companies like Palantir and Dream. The article notes that there is no precedent for such a three-tier fundraising round, indicating the extraordinary enthusiasm of giant funds to invest in Israeli cybersecurity companies.