New Investment Opportunity: NetOp
AI-based proactive network operations
- NetOp automatically prevents major network outages; out-of-the-box proactive network operations uses hardware agnostic, software-only AI-powered advanced automation to autonomously predict and fix issues on cloud-managed networks as they arise, replacing tedious manual management, monitoring and remediation
- On track to triple ARR in 2022; 30+ customers in pipeline
- Successful PoC with top-tier bank, agreement expected to yield $1M ARR by end of Q2 2023; beat SolarWinds for a contract with a global manufacturing enterprise; aggregated deals are expected to result in $150K ARR by end of 2022
- Official partner of Cisco Meraki Marketplace; nine ongoing trials including major global financial institution, Israel's largest MSP and other global MSPs
- Twice received Israel Innovation Authority funding, expects additional $450K to be matched by funds in this round to extend runway
- $1M SAFE 20% discount, slightly down round where investors receive 2X liquidation preference and 50% warrant coverage
BOOK A CALL
with your Investor Relations representative
Dear Josb,
Enterprise networks are the essential infrastructure on which every modern business is based. The rapid growth and complexity of these networks leaves them vulnerable to outages that can paralyze entire global businesses.
OurCrowd is investing in NetOp, which automatically monitors and prevents outages, supporting over 80% of network hardware on cloud, physical and hybrid networks. The details in this email are based on information received from, and verified solely by, the company.
The Problem
Enterprise networks are now migrating from in-office systems to cloud-based networks-as-a-service (NaaS), becoming too complex and dynamic for humans to manage alone. Separate vendors and conflicting policies over connectivity and security create conflicts and reduce visibility, resulting in costs estimated at $350B each year.
The Solution
NetOp provides next-generation proactive network operations, using AI-powered automation to predict and fix issues on cloud-managed networks, replacing tedious manual management, monitoring and remediation.
NetOp's AI-powered proactive health monitoring and management continuously scans the network, seeking, identifying and remediating problems. It provides self-service tools for business users and automatic service configuration.
The company's service integrates with an extensive array of ecosystem partners and network management platforms. The software supports over 80% of network hardware and can serve on cloud, on premise and hybrid networks. It integrates with the platforms used by over 80% of the AI-ops & network management industry, including platforms developed by Fortinet, Cisco, Aruba and Zscaler.
No other single vendor currently offers both network health monitoring together with network remediation and configuration management. The company's AI-based models predict network behavior and loads, providing remediation that is hardware agnostic with minimal human intervention.
The Traction
NetOp is on track to triple its ARR in 2022. It is completing a successful PoC with a top-tier European bank that is expected to yield $1M ARR by mid-2023 and it beat competitor SolarWinds to a contract with a global manufacturing enterprise. The firm's aggregated deals are expected to result in $150K ARR by Q4 2022.
The company has twice received funding from the Israel Innovation Authority and is on track for a third grant of $450K if it can raise matching funds, which will extend the company's runway by six months.
NetOp has nine ongoing trials, including one with a major global financial institution, Israel's largest MSP which is also collaborating as a design partner, US-based MSPs and companies in the retail, manufacturing and education sectors. Additionally, the company has more than 30 potential clients in the pipeline which it hopes to convert by the end of 2023.
The company signed a partnership with Cisco Meraki for co-marketing and lead generation and is available via the Cisco Meraki Marketplace.
The Company
NetOp recently appointed new senior staff to key management positions, including a new CMO, CTO and COO.
The Market
NetOp operates using a network-as-a-service (NaaS) business model. The NaaS market was $10.4B in 2021 and forecast to reach $37.5B in 2026, growing at a CAGR of 38%.
The Round
OurCrowd is leading this $1M SAFE with 20% discount, with an up to $500K allocation. It is a slightly down round in which investors will receive a 2X liquidation preference and 50% warrant coverage. The funds will be used to extend the company's runway by six months to implement the revised business plan by its new management and secure increased ARR by concluding contracts with the 30 or more potential customers in its pipeline.
Meet the CEO
We're hosting a webinar/conference call on Monday, October 24th, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Bibi Rosenbach and learn more about NetOp.
Can't make the webinar? Register and we will send you a recording of the call.
The NetOp Solution
NetOp provides a cloud-based software solution that automates enterprise network operations and manages the configuration and health of network infrastructure in enterprise campus and branches. It is done along the end-to-end connectivity between the enterprise campus side LAN/wireless accesses, switches, security elements and the cloud-based networking side, SD-WAN, Security-as-a-Service and hybrid cloud VPC and networking elements.
NetOp's software is licensed and distributed as a SaaS network operation platform, enabling next generation Network-as-a-Service (NaaS) offering, simplifying IT and network operation for enterprise and MSPs.
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