The Israeli fintech startup TipRanks, which offers investment recommendations through the analysis of various data sources, announced that it was sold to the Prytek fund, one of its first investors, at a value of 200 million dollars.
Prytek Fund, which first invested in TipRanks 6 years ago, has increased its holdings over the years through the purchase of shares in investment rounds and secondary transactions. Now, Prytek is purchasing about 40% of the shares from the entrepreneurs, employees and other investors, and will become the controlling owner with 80% of the shares in total. About 20% of the shares will remain in the hands of additional institutional investors.
TipRanks has developed a platform that uses natural language processing to analyze information from various sources, and provides investment recommendations to private and institutional investors. The platform tracks the performance of over 7,000 professional analysts and provides users with performance history and evaluations of their investment advice. The company reports more than 50 million monthly users through banks and brokers that offer the service to their customers. TipRanks clients include financial institutions such as Nasdaq, Robinhood, CIBC, Morgan Stanley and Israel’s eToro.
TipRanks was founded in 2012 by Gilad Gat (CTO) and Uri Greenbaum (CEO), and to date has raised approximately $102 million from investors such as Prytek, Symmetryx, Bank Hapoalim’s Poalim Equity Fund and MORE. Prytek, a Russian-Israeli-Singaporean investment and holding group, was founded by Andrey Yashonsky, who serves as CEO, and Yair Sarosi, former chairman of Bank Hapoalim.
Uri Greenbaum, CEO of TipRanks, commented on the sale and said:
“Selling control of TipRanks was not an easy move for me and for Gilad. It is an exceptional company with a high level of profitability and double-digit growth. Over the years, we received quite a few offers to purchase, but we always refused. After 11 years of activity, some investors expressed a desire to liquidate Their holdings, and that is understandable. We are happy and proud that we were able to generate phenomenal returns for them in a challenging economic period.” Greenbaum added: “The connection with Freetech is very natural, both because of the synergies and their ability to integrate us into their customers, and also because of the human composition. We have 6 years of experience working with them, and it has always been positive. In the end, we chose to be sold to a company that would allow us complete freedom of action and potential A significant expansion. We appreciate the investors who stay with us in the upcoming growth phase and are committed to proving to them that this was the right decision.”
