11 unique startups from Israel that raised funding in 2016

The relentless growth engine of the Israeli startup ecosystem showed no signs of slowing down this year. Tel Aviv was ranked as the third hottest startup hub in the world by venture capital firm SparkLabs, just behind Silicon Valley and Stockholm. Startups from the tiny Middle Eastern country nabbed almost US$550 million in VC funding in June alone.

For context, new Israeli companies raised US$3.6 billion in 2015, or an average of US$300 million every month. It’s likely that figures for this year will obliterate that tally.

Because of Israel’s small domestic market, entrepreneurs from the country tend to build companies that address global issues. You’ll find expertise in cybersecurity, drones, IoT, autonomous cars, and consumer tech.

Here are 11 inventive startups that raised funding this year.

1. Houseparty

New social apps face seemingly insurmountable challenges – but Houseparty has stealthily grown to about a million daily active users. The app launched fairly recently but has already sparked a bidding war among VCs, with Sequoia narrowly edging out competing suitors to lead a US$50 million funding round last week.

Houseparty is engineered by the founders of Meerkat – the livestream darling that raised US$14 million before going bust in September. It works as a private livestreaming service, allowing users to jump in and out of video calls shared between a maximum of 8 people.

Sima Sistani, chief operating officer of Houseparty, believes the app could be the new social network for Generation Z and likens it to Snapchat with a focus on shared, authentic experiences.

2. Sixgill

Almost all cyberattacks originate from the dark web – that’s the hidden, encrypted part of the internet not accessible by Google. Sixgill prowls the dark web’s social networks to detect and quell threats before they cause major damage.

The startup’s founding team consists of intelligence and cybersecurity experts. Avi Kazstan, CEO of Sixgill, told Tech in Asia in August that criminal activity is rife on the dark web – with people looking to rob banks, attack countries, and hire contract hitmen. Encryption helps them maintain a degree of anonymity and prevent detection from law enforcement.

Sixgill works with large organizations such as financial institutions, government bodies, and intelligence agencies. It raised US$5 million in June.

3. Travelersbox

Travelersbox builds ATM-like kiosks which allow people to make use of the pesky foreign currency left behind after a holiday or business trip.

4. Nexar

5. Zebra Medical Vision

6. Lemonade

7. Prospera

8. Twiggle

9. Otonomo

10. Airobotics

11. Gett