The Israeli start-up Carbyne, which develops software for smart communication with emergency centers and service, announced today (Wednesday) the raising of 56 million dollars. Since its establishment in 2014, Carbine (formerly Reporty) has raised $128 million. Carbine employs 200 people, 70 of them in Israel.
The largest investor in the round was Cox Enterprises, which invested 25 million dollars. Together with her, Hanaco Growth led the round. Other new investors in the round were Valor Equity Partners, General Global Capital, TalC (a fund from Abu Dhabi) and investor Sandif Bummer. The company’s existing investors participating in the round were retired General David Petraeus, Founders Fund, Elsted Capital Partners, FinTLV. Recruitment closed last July.
Carbine was founded by Amir Elihai (CEO), Alex Dizengoff (Technology Leader), Yoni Yattason (Head of Development Teams), Lital Leshem (Shareholder) and Panchas Buchris – former CEO of the Ministry of Defense. Among its first investors was Ehud Barak, who served for a certain period as chairman, but today is not involved in the company and does not hold shares in it.
Carbine’s software manages all communication with emergency centers from the moment a citizen calls emergency services such as 911 in the US. Carbine’s software routes the call to the center, allows the call to be transferred to video, send a location and photo, and also share information with the police and rescue teams in the field. Carbine tries to replace the traditional suppliers of software for emergency centers, Motorola and Intrado, which dominate a market of 10 billion dollars per year. The company’s big challenge is to convince local governments to adopt a cloud-based product for emergency services. The company has 11 patents on the technology, including an architecture developed together with Amazon that allows working Even without an internet connection.
Elihai told “Globes” that times of economic recession are actually good for a company like Carbine. “The worse the situation, the better for us at Carbine because we sell to local governments and when crime increases, then we invest more in public security. We also sign long-term contracts for 5 years and we have less abandonment, which is attractive to investors now.” In Israel, Carbine works, among other things, with the municipalities of Tel Aviv and Jerusalem, as well as with the scooter company Wind. Globally, the company recently won contracts in the city of New Orleans, Florida and Medellin, Colombia.
According to Elihai, the value according to which the current recruitment was carried out was three times higher than in the previous recruitment last year. “We increased our annual recurring revenue (ARR) by 250% compared to the previous year, which is a significant jump, and these amount to tens of millions of dollars. On the other hand, the multiples you receive on revenue have decreased, and if last year your value was determined by a multiple of 20 on year-end revenue, now It went down to a multiplier of 10. I think if we were still in the multipliers of 2021, Carbine would be a unicorn.”