Israeli startup Notch has raised US$30 million in a Series A funding round.
The round was led by Headline, with help from Illuminate, Jibe Ventures, Lightspeed Venture Partners, and Phoenix Insurance’s investment arm. So far, Notch has raised $45 million in total.
Broshi said: “We founded the company in May 2021 and initially built an insurance product in the United States for digital assets such as social media accounts, which we launched there. About two and a half years ago, we identified a larger opportunity in an internal product we had developed for customer service. We decided to shut down the insurance activity and focus entirely on that product, which became the foundation of the company today. We raised $7 million for the original insurance activity, about $8 million in 2024 for the new direction, and now this latest round.”
Regarding competition and comparisons with Wonderful, which recently achieved a unicorn valuation, Broshi said: “Our field, customer experience, is enormous. We do encounter Wonderful, particularly in Israel, but the opportunity is very large. Most of this funding will be used to expand significantly in the United States, where we already have several major customers in the financial sector, which is our primary market. In Israel, we also work with companies like Phoenix, which is also an investor.”
He added: “Lemonade were pioneers in transforming a traditional industry with a strong software-driven experience. It’s a difficult field to operate in, which is exactly why we chose it. In the United States, much of the workforce in customer experience is concentrated in financial services, a sector that is slow to adopt change. However, differentiation between companies often comes down to customer experience. Over the past two years, AI has begun reshaping large organizations, and they are actively evaluating new solutions. We believe that in the coming years, companies will move toward full implementation of AI-driven customer experience systems. Our background in insurance, including launching products across multiple countries, gives us a strong advantage as we expand into the U.S. financial market.”
Notch was founded in 2021 by Rafael Broshi (CEO), Elool Jacoby (CPO), and Yuval Peled (CTO). The company now has 50 employees working in its offices in Israel and the United States.
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