A Canadian venture capital fund, The Group Ventures (TGV), is suing the Israeli company GEOX and some of its directors. TGV wants to cancel its $1.5 million investment deal with the company. If the deal is not canceled, the fund is asking that the company’s directors pay the money personally.
In its lawsuit, TGV says that GEOX gave false information on purpose, not by mistake. The company launched a Series A funding round in 2024 and shared very positive—but misleading—data. This included inflated revenues, big customer agreements, and ambitious growth plans, even suggesting an IPO by 2029 to look like a strong investment.
TGV explains that it was also influenced by the fact that Flashpoint Venture Capital invested $8 million based on the same data. In December 2024, TGV itself signed a deal to invest $1.5 million in GEOX, receiving about 54,000 shares in return.
The plaintiffs say GEOX gave information that was false and meant to mislead investors.
Instead of being a growing business, GEOX was actually losing customers, spending around $500,000 every month, and falling deeper into debt.
TGV also claims that GEOX exaggerated its annual recurring revenue (ARR) by about 50% and that some of the company’s claimed deals with major customers did not exist.
TGV says it asked GEOX for proper documents and accurate data, but the company did not provide them and only shared limited information. At the same time, in September 2024, GEOX announced through a press release that it had raised $19 million. The company claimed the investors were Flashpoint, the R&D partnership Suretech, and private investors Ariel Maislos and Noam Lanir.
GEOX was founded in 2018 by CEO Itzik Lavi, CTO Eli Lavi, and Guy Attar. The company builds technology that helps assess risks to real estate from climate-related disasters.
Its system uses 3D analysis of aerial photos to study properties and predict possible damage. It produces detailed data useful for insurance, such as the size, type, condition, and slope of roofs, along with other property details for both private and commercial buildings.
In response to the lawsuit, GEOX stated: “We remain optimistic about the company’s progress. We regret the claim from a dissatisfied investor. We are reviewing the documents and will respond accordingly.”
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