Springtide takes 50% of NetOp SAFE
On track to triple ARR in 2022 with 30+ customers in pipeline
- Existing investor Springtide to invest $500K and lead $1M SAFE capped at $15M, 20% discount, 100% warrant coverage; reduced burn to provide runway through Q2 2023
- OurCrowd monitoring company's cash position with concern
- On track to triple ARR in 2022; 30+ customers in pipeline
- Successful PoC with top-tier global financial institution, agreement expected to yield significant ARR by mid-2023; beat SolarWinds for contract with global manufacturing enterprise
- Official partner of Cisco Meraki Marketplace; 9 ongoing trials including Israel's largest MSP and other global MSPs; 30 more potential customers in pipeline
- Twice received Israel Innovation Authority funding, expects additional $450K to be matched by funds in this round to extend runway
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.
NetOp automatically monitors and prevents outages, supporting cloud-controlled network devices on cloud, physical and hybrid networks. The details in this email are based on information received from, and verified solely by, the company.
NetOp's AI-powered proactive health monitoring and management continuously scans the network, finding, identifying and remediating problems. It provides self-service tools for business users and automatic service configuration.
The software supports cloud-managed enterprise 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.
Since OurCrowd's last investment in December 2021, NetOp reports the following significant developments:
New lead for $1M SAFE: Springtide, an existing investor, has taken the lead of this $1M SAFE capped at $15M with a 20% discount and 100% warrant coverage. The SAFE funding will provide the company with runway through Q2 2023, enabling it to implement a revised business plan by its new management and secure increased ARR by concluding contracts with the 30 or more potential customers in its pipeline.
On track to 3X ARR: NetOp is on track to triple its ARR YOY by the end of 2022. It is completing a successful PoC with a top-tier European bank that is expected to yield significant ARR by mid-2023, and it beat major competitor SolarWinds to a contract with a global manufacturing enterprise. NetOp also signed a partnership agreement with a global leader in cloud-controlled Wi-Fi, routing, and security for co-marketing and lead generation.
SOC 2 certification: NetOp achieved the standard for SOC 2 certification, a voluntary compliance standard for service organizations developed by the American Institute of CPAs which specifies how organizations should manage customer data.
IIA funding: The company has twice received funding from the Israel Innovation Authority and is on track for a third grant of $450K.
Strong pipeline: NetOp has nine ongoing trials, including with a major global financial institution; Israel's largest MSP which is also collaborating as a design partner; and with 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 before 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.
Product development: Advances in the company's technology enable the platform to extend its applicability to more use cases. It now supports 80% of enterprise network devices.
Staffing changes: NetOp recently appointed new senior staff to key management positions, including a new CRO, CMO and CTO. The company also cut two positions and lowered management salaries as part of a cost-cutting program to secure its cash position.
Meet the CEO
Watch an investor briefing with CEO Bibi Rosenbach and learn more about NetOp.
The NetOps 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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