Fintech firms are flourishing in Israel due to strong overseas interest, commitment to innovation and local talent that is devoted to addressing the specific needs of this industry. As of 2016, Israel has approximately 430 fintech companies and 14 multinational research and development (R&D) centers. Israel has long been the epicenter of cybersecurity, and fintech development is largely a byproduct of innovation in this field. These factors are encouraging new firms in this space to emerge and excel.
The following six fintech companies domiciled in Israel are gaining traction and providing innovative solutions in areas such as payments, trading and investments, and cybersecurity.
MyCheck LLC
MyCheck LLC, headquartered in Tel Aviv, offers mobile payment solutions intended to enhance the shopping experience by providing a faster checkout and higher levels of customer engagement. The company’s application allows users to make payments directly from a mobile device at businesses such as restaurants, convenience stores and hair salons. The technology gives users the ability to split a bill, issue tips and redeem offers. Merchants are given tools providing analytics for MyCheck users. Erez Spatz, Shlomit Kugler and Tal Zvi Nathanel founded MyCheck in 2011. $13.1 million has been raised in four rounds of funding as of July 2016. Key investors include Eli Alroy, Entree Capital and Santander InnoVentures.
TradAir Ltd.
Founded in 2010 by Ayal Jedeikin and Illit Geller, TradAir Ltd. specializes in front office optimization solutions, helping financial institutions, specifically foreign exchange trading companies, create new revenue layers and minimize costs while creating and improving customer relationships. TradAir’s suite of products is fully customizable to meet customers' specific requirements. The Tel Aviv-based company is backed by Carmel Ventures, Genesis Partners and Long Ridge Equity Partners. TradAir completed a $15 million funding round in January 2015 to enhance its technological capabilities.
Zooz Ltd.
Oren Levy and Ronen Morecki founded Zooz Ltd. in June 2010. Headquartered in Kfar Saba, the company provides an online payment platform that synchronizes online and in-store transactions, helping merchants maximize their payments capabilities. Solutions intend to increase customer conversions using omni-channel checkouts, multiple payment options and one-click payment gateways. The Zooz platform is available on iPhone, iPad and Android mobile devices. Zooz targets businesses attempting to extend their reach, reduce customer decline rates and increase revenues. $40.5 million has been raised in four rounds as of July 2016. Lead investors include Target Global, Blumberg Capital and Lool Ventures.
I Know First
I Know First, founded in 2009, attempts to level the playing field in the trading arena by providing algorithmic trading access to retail traders and investors. Predictive algorithms based on artificial intelligence generate short- and long-term forecasts for financial markets, including stocks, commodities, indices and foreign exchange (forex). Founder and scientist Yaron Golgher developed the self-learning algorithm, drawing on his 35 years of experience. I Know First is based in Tel Aviv.
Leverate Ltd.
Leverate Ltd. provides a suite of premium forex brokerage software products, such as electronic trading platforms and back-office technologies. Its social trading platform, Sirix, is designed to operate in multiple trading environments. Sirix provides access to a large social trading community that educates and encourages traders. Leverate received industry recognition, winning the 2012 best retail forex technology provider and 2013 best white label solutions provider. Ran Strauss, Itai Damti, Doron Somech and Doron Cohen, a team of software development experts, founded Leverate in 2008. Saxo Capital Group Inc. (OTC: SCGX) backed Leverate with a $12.5 million investment in July 2012.
ThetaRay Ltd.
ThetaRay was founded by Professors Amir Averbuch and Ronald Coifman in 2013. The Israel-based company provides big data analytics solutions that analyze massive amounts of data for advanced cyber security, financial risk detection and operational efficiency. ThetaRay’s technology is fully automated and unsupervised, not reliant on rules, patterns or heuristics. Algorithms developed by the company are applicable to any industry, but are currently productized for financial services sectors, the Internet of Things and critical infrastructure. ThetaRay has raised $30 million from five funding rounds as of July 2016. Prominent investors include General Electric Co. (NYSE: ) and Jerusalem Venture Partners.
