With digital transformation taking on ever greater urgency, companies looking for ways to accelerate their plans often encounter obstacles in terms of heavy and expensive network costs. Now a Israeli Startup working with telecommunications providers hopes to solve this problem with software that eliminates the need for much of traditional hardware.
DriveNets announced today that it raised $ 208 million to submit its valuation of more than $ 1 billion. D1 Capital Partners led the financing round which also included money from the new investor Atreides Management along with previous investors, such as Bessemer Venture Partners and Pitango. Financing comes on two years after DriveNets raised $ 110 million.
According to DriveNets CEO and co-founder Ido Susan, telecommunications providers that adopt DriveNets software are able to offer better savings for business users who can then implement new services for less money
“After sharing the resources, after having everything on top of this solution, it reduces the cost per bit,” said Susan. “You are monetizing your investment much better. And it accelerates innovation. “
Founded in 2016 by Susan and co-founder Hillel Kobrinsky, the company’s mission is to bring the same type of disruption to the network that was occurring in other sectors, such as storage. Network traffic was already growing and projections indicate that it will continue to accelerate with the move to larger video formats and greater mobility and now virtualization is being imposed by the pandemic.
“Sectors like computing and storage have already moved to software,” said Susan. “To support the scale and demand of traffic. But the network still has a hardware solution. And I think this is a bottleneck ”.
This is constantly forcing telecommunications providers to deploy more equipment to handle outbreaks of use. And companies must do the same to expand or launch new services. DriveNets sells what it calls Network Cloud software to telecommunications companies that provide it as a service to large customers.
Although DriveNets announced AT&T as a major customer, it is working with dozens of other suppliers, said Susan. DriveNets software allows these providers to traffic many customers on the same infrastructure, allowing the software to direct traffic. Telecommunications companies like the service because they can increase the capacity of the network without installing large amounts of new hardware.
“It is a shared resource and packages coming from the end user on the same infrastructure with the software that makes the separation,” said Susan. The system can still retain strong privacy and security, so that it is viable even for larger financial institutions or other companies that handle particularly sensitive data.
The company plans to use the latest financing to continue product development while hiring employees to keep up with demand and move to new territories.
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