Itamar Ben Hemo did not have to join the war. At the age of 49, the Israeli tech entrepreneur has gone well beyond the call of duty. But after last year October 7 attack by Hamas Ben Hemo signed up as a reservist, convinced that his combat experience as a paratrooper in Lebanon in 2006 made him an asset to his country.
In January, during a supposedly quick mission to Gaza to help a wounded soldier, Ben Hemo says he remembers hearing a shot and feeling searing pain. He was hit by a bullet that missed his protective vest. Several organs were damaged.
Ben Hemo was taken to hospital. He remembers thinking he might not survive.
While Ben Hemo was recovering, the technology industry was in the midst of rapidly advancing generational modernization with artificial intelligence. Companies of all shapes and sizes continued to look for ways to integrate this technology with customer service, marketing and sales.
Rivera, which Ben Hemo helped launch in 2019, fits directly into this theme, specializing in software integration through artificial intelligence. During Ben Hemo's stay in the hospital, surgery and Rivera's rehabilitation, he continued the business, serving customers and enjoying the trust of other company executives.
Last week, about 11 months after Ben Hemo's hospitalization, his startup was bought by Boomi, a Pennsylvania-based cloud software company. Terms of the deal were not disclosed, but Boomi CEO Steve Lucas told CNBC it was worth “around $100 million.”
Lucas describes Boomie as “Google Translator for Business”, taking into account the many different types of software a company uses, regardless of programming language, and integrating them into one functioning system. What makes Rivery so attractive, he said, is that it helps accelerate real-time software integration in the cloud using AI to analyze different types of data sets.
During his three-month recovery, Ben Hemo held company meetings and talked to investors from his hospital bed.
Palestinians check the damage at the site of Israeli attacks on homes, amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas, in Khan Younis in the southern Gaza Strip, October 29, 2023.
Mohammed Salem | Reuters
“In my opinion, anyone who has that fortitude has what it takes to make the software work,” Lucas said.
Rivery employs approximately 100 employees and 450 clients from all over the world. Ben Hemo said he was approached by several other suitors, but he wasn't looking for a deal until Boomi emailed his investors. Key early sponsors included Entrée Capital, State of Mind and Tiger Global Management.
Lucas said the development of artificial intelligence is moving so fast that if companies are slow to adopt the technology, the risk will be existential.
“If you're a CEO and you don't think about how your company can have AI-powered units, you could end up being the next Blockbuster,” Lucas said, referring to death the once-dominant video rental service.
Lucas says adding Rivery to Boomi will enable the combined company to keep its artificial intelligence on track, and when it goes wrong, it will be able to recognize it and hire a human to quickly fix any customer service issues that arise.
“Without data, incomplete or distributed, there is no artificial intelligence,” said Ben Hemo. “We found a way to solve this problem as the information came in, interpreting it and organizing it for customers.”
Boomi CEO Steve Lucas
Boomi
However, Lucas says he is well aware of the risks associated with making a significant investment in Israel.
The war, which began more than 14 months ago with the Hamas invasion, is not yet over. Israel continues to be the target of rockets from the Gaza Strip and ballistic missiles from as far away as Yemen. More than 100 hostages taken from Israel remain in captivity and it is unclear how many of them are still alive.
In Gaza, the death toll and financial cost cannot be calculated, but Hamas says more than 40,000 people have been killed. Images from the region suggest that very few buildings remain intact as a result of the ongoing war.
“I would be lying if I said we didn't consider the risks of doing business in Israel,” Lucas said. “But some of the best technology in the world comes from Israel.”
Shortly after Ben Hemo was hit, another Rivera employee, Itay Galea, was killed in the line of duty in northern Israel, where that country was fighting Iran-backed Hezbollah. Galea, a 38-year-old reserve officer, received shares in Rivera, so his surviving family will benefit from the deal with Boomi.
According to the Israel Innovation Authority, which is part of the Israeli government, about 15% of tech workers have left their jobs to join the military because of the war. Foreign investors refrained from purchases and investments.
However, there are signs of a rebound.
A recent report by PwC Israel shows that total Israeli startup departures have eclipsed 2023, with average deal size now exceeding 2022 numbers. Rotem Eldar of Israeli venture capital firm 10D said: “2024 fundraising numbers are now starting to match pre-war numbers.” The 10D report shows that the greatest area of investor interest is cybersecurity companies.
Since the attack on Israel in October 2023, the stock market has rallied.
The Israeli stock exchange also recorded a recovery, including: Tel Aviv Stock Exchange has more than doubled since its October 2023 lows.
For Ben Hemo, the sale to Boomi marks his second successful exit as CEO and founder. He says he has fully recovered from his injuries.
“I have the energy to do it,” he said. “I am very excited, we all understand the gift of this opportunity.”
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