Israeli Startup Onfire Raises $20 Million to Leverage AI for B2B Software Sales
Israeli startup Onfire today announced it has secured $20 million in funding to expand its artificial intelligence-powered platform that identifies potential buyers and decision-makers within software companies by analyzing developer discussions online.
The funding round, led by Grove Ventures and TLV Partners with participation from IN Venture and LeumiTech77, will be used to bolster the company’s AI, research and development, and sales teams. Onfire’s platform monitors public forums like Hacker News, Reddit, and Stack Overflow to understand developer needs and identify the companies and individuals discussing specific tools, then layers in data on budget cycles to optimize sales outreach. The company reports driving over $50 million in closed deals during its beta phase, with early clients including ActiveFence, Aiven, and Cyera.
Founded by veterans of Israel’s Unit 8200 intelligence corps – Tal Peretz, Shahar Shavit, and Nitzan Hada – Onfire aims to address a gap in the market where software infrastructure companies struggle to effectively leverage AI in their go-to-market strategies. “The missing piece there was the data,” explained Lotan Levkowitz, managing partner at Grove Ventures. The company’s approach, starting with data collection and then applying AI, is intended to provide more personalized and timely outreach to potential customers, a growing need as buyers face increased noise from AI-driven mass outreach efforts. This funding comes as companies increasingly seek ways to augment traditional sales methods with data-driven insights, particularly in the enterprise software space – a trend highlighted in recent reports on sales technology.
While the company’s data collection methods, involving the identification of commenters’ employers from public forums, may raise privacy considerations, Onfire frames its approach as mutually beneficial. “Our customers are happy, and by the way, even their prospects are happy, because people pitch them with the right things at the right time,” said Levkowitz. Peretz added that the startup views its verticalized, data-centric focus as a key differentiator against larger CRM providers like Salesforce and HubSpot. The company plans to expand its operations, with a focus on the U.S. market.
Onfire officials stated they will continue to refine their AI system and expand their data set, believing that each new customer will further enhance the platform’s accuracy and effectiveness.
Developers hate (bad) marketing, but they still need a way to find useful tools and services. That’s why you’ll find a preponderance of developers on forums and sites like Hacker News, Reddit and Stack Overflow discussing their dev kits and why some tools are better than others.
That buying intent is the signal that Israeli startup Onfire wants to help software vendors capture. The company monitors public forums to learn what tools devs are discussing, and then uses AI to identify which companies those commenters work with and who the decision makers there are. The platform also layers in data on budget cycles, and puts it all together to help B2B sales teams time and contextualize their outreach.
Onfire is now coming out of stealth with $20 million in funding, TechCrunch has learned exclusively. This includes a fresh $14 million Series A co-led by Israeli VC firms, Grove Ventures and TLV Partners. IN Venture, the venture arm of Japan’s Sumitomo Corporation, also participated, as did LeumiTech77, a special fund marking Israel’s 77th anniversary.
Like many other Israeli founders and VCs, Onfire’s CEO Tal Peretz, CTO Shahar Shavit and CPO Nitzan Hada are alumni of the Israel Defense Forces’ Unit 8200, an intelligence unit akin to the NSA that both won awards and sparked controversy for its alleged mass surveillance of civilians using advanced AI and data tools.
After joining the private tech sector, the trio (pictured above, from left to right: Hada, Peretz and Shavit) saw the opportunity to use their intelligence expertise in SaaS. The startup estimates it has driven “more than $50 million in closed deals” for its clients since its beta launch 12 months ago, and says its early users include ActiveFence, Aiven, Cyera, Port and Spectro Cloud, as well as other companies selling data, cybersecurity. FinOps and observability solutions to technical buyers.
Still, one can’t ignore the elephant in the room: Given the founders’ intelligence background, Onfire’s trawling of public data to identify commenters’ employers is sure to raise eyebrows. But Levkowitz frames the startup’s outcomes as a win-win. “Our customers are happy, and by the way, even their prospects are happy, because people pitch them with the right things at the right time,” he said.
The company hopes its vertical, data-centric focus will give it an edge over competitors. While other AI-enabled tools promise to boost enterprise sales, Peretz says one can’t do personalized outreach without something to base it off. “What set us apart is we started as a data-first company, and then we added the AI engine on top of that,” he said.