Granulate Series-B

This is the Granulate pitch deck to raise a $30m series-b round in 2021.

About

Granulate is AI-powered optimization software that improves performance by creating a streamlined environment for any app. Granulate agents can be installed on any Linux server, and support any architecture be it data-centers, or multi or hybrid-cloud environments. Comprised of the kernel and user-level components, the agents infer from the resource usage patterns how to best adapt the machine to the load it handles, creating a streamlined environment for the application.

It was founded in 2018 and is based in Tel Aviv, Israel.

Granulate promises to make companies’ cloud computing setups more efficient which it says reduces costs by as much as 60%.

Granulate’s founders, Israel Defense Forces veterans Asaf Ezra and Tal Saiag, began the company in 2018 after noticing prospective customers on cloud infrastructure were operating at low utilization rates, meaning higher costs.

“They were provisioning a lot of machines and using them to a very low extent, around 10% to 40%,” Ezra told Insider. “This was a huge price, because you’re paying anywhere between 60% and 90% extra on top of what you’re actually using … We realized there was a huge issue around performance and architecture.”

Granulate promises to optimize performance in real time, saying this adds to its clients’ bottom line.

The firm lists app marketing firm AppsFlyer, photo editor PicsArt, and ad tech firm Perion as clients.

“We saved our customers around $20 million this year,” Ezra said, adding the firm’s customers were spread across Europe, Southeast Asia, North America, and South America.

Ezra said the pandemic had accelerated the demand for computing cost reductions and spurred an uptick in business — hence raising two funding rounds in a comparatively short space of time.

Granulate currently has around 40 staff, the majority of whom are based in Israel. The firm has other offices in the UK and the US, and plans to use the funding to double headcount over the next year.

Granulate’s funding round also saw European enterprise software investor Dawn Capital join as a new backer. Additional participation came from existing backers Insight Partners, TLV Partners, and Hetz Ventures.

As with other founders raising cash through the pandemic, Ezra hasn’t met all of his investors in person, including Dawn partner and deal lead Evgenia Plotnikova.

Nonetheless, Plotnikova said the firm was looking to invest in startups in the cloud infrastructure space and took the leap.

“Cloud has won,” she said. “Capital One, a huge bank, recently announced that they are going fully cloud, and you couldn’t have imagined that two or three years ago. Amazon announced its first $100 billion quarter.

“We were looking for businesses that would help enterprises manage that transition, to manage not just their bills and effectiveness, but their ability to be hybrid and multi-cloud and regain control that they used to have when they were on-premise in the easiest and sleek way possible.”

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