Published On: Wed, Mar 10th, 2021

YL Ventures sells the interest in cybersecurity unicorn Axonius for $270M

YL Ventures, a Israel-focused cybersecurity seed fund, now announced that it has sole a interest cybersecurity item government startup Axonius, that usually a week ago announced a $100 million Series D appropriation turn that now values it during around $1.2 billion.

ICONIQ Growth, Alkeon Capital Management, DTCP and Harmony Partners acquired YL Venture’s interest for $270 million. This outlines YL’s initial lapse from a third $75 million fund, that it lifted in 2017, and a largest lapse in a firm’s history.

With this sale, a company’s third account still has 6 portfolio companies remaining. It sealed a fourth account with $120 million in committed collateral in a center of 2019.

Unlike YL, that focuses on early-stage companies — nonetheless it also tends to attend in some later-stage rounds — a investors that are shopping a interest specialize in later-stage companies that are mostly on an IPO path. ICONIQ Growth has invested in a likes of Adyen, CrowdStrike, Datadog and Zoom, for example, and has also frequently partnered with YL Ventures on a later-stage investments.

“The transition from early-stage to late-stage investors only creates clarity as we expostulate toward IPO, and it allows any financier to concentration on what they do best,” pronounced Dean Sysman, co-founder and CEO of Axonius. “We conclude a superintendence and support a YL Ventures group has supposing during a early stages of a association and we honour them on this successful journey.”

To put this sale into viewpoint for a Silicon Valley- and Tel Aviv-based YL Ventures, it’s value observant that it now manages about $300 million. Its stream portfolio includes a likes of Orca Security, Hunters and Cycode. This sale is a outrageous win for a firm.

Its many headline-grabbing exit so distant was Twistlock, that was acquired by Palo Alto Networks for $410 million in 2019, though it has also seen exits of a portfolio companies to Microsoft, Proofpoint, CA Technologies and Walmart, among others. The account participated in Axonius’ $4 million seed turn in 2017 adult to a $58 Million Series C turn a year ago.

It seems like YL Ventures is holding a really useful proceed here. It doesn’t specialize in late-stage firms — and until recently, Israeli startups always tended to sell prolonged before they got to a late-stage turn anyway. And it can beget a good — and guaranteed — lapse for a possess investors, too.

“This exit netted $270 million in money directly to a third fund, that had $75 million sum in collateral commitments, and this account still has 6 superb portfolio companies remaining,” Yoav Leitersdorf, YL Ventures’ owner and handling partner, told me. “Returning mixed times that account now with a singular exit, with a rest of a portfolio companies still there for a upside is a many obliged — nonetheless rarely essential trail — we could have taken for a account during this time. And all this while ludicrous a energies and means some-more towards a seed-stage companies (where a assistance is some-more impactful), and during a same time ancillary Axonius by enabling it to move aboard such glorious late-stage investors as ICONIQ and Alkeon – a loyal win-win-win conditions for everybody involved!”

He also remarkable that this sale achieved a top-decile lapse for a firm’s singular partners and allows it to concentration a resources and courtesy toward a younger companies in a portfolio.

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