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Israeli cybersecurity firm Riskified holds Wall Street IPO at $3.3B valuation

Company’s share price soars 30% as trading begins on New York Stock Exchange; becomes 10th Israeli startup to hold US public offering this year

Luke Tress is a video journalist and tech reporter for the Times of Israel

The floor of the New York Stock Exchange, on February 27, 2020. (AP/Craig Ruttle)
The floor of the New York Stock Exchange, on February 27, 2020. (AP/Craig Ruttle)

Riskified, an Israeli online fraud prevention company, went public on Wall Street on Thursday at a valuation of $3.3 billion.

The company priced 17.5 million shares at $21 each, slightly higher than the planned price of $18-$21 per share. The shares were listed on the New York Stock Exchange under the ticker RSKD.

Immediately after the offering, the stock price soared over 30 percent to $27.

Riskified was the 10th Israeli tech firm to hold initial public offerings on Wall Street so far this year. Others have listed on New York exchanges via SPAC mergers.

The company was expected to raise at least $363 million with the IPO.

Riskified was established in Israel in 2013 to combat online payment fraud. Its platform uses machine learning to weed out potential fraud for online merchants to reduce risk and uncertainty in digital transactions. The company says its technology reduces losses and operating costs, while pushing sales higher and strengthening relationships with consumers.

Its customers include Wayfair, Finish Line, Prada, Peloton, AirEuropa and Steve Madden.

In the first half of the year, Israeli cybersecurity companies raised $3.4 billion in 50 deals and seven of them became unicorns, or private companies valued at over $1 billion, the Israel National Cyber Directorate said earlier this month.

More than a third of worldwide cybersecurity unicorns are Israeli, the data showed, with some 13 in Israel out of 30-33 globally, the directorate said.

Last month, SentinelOne debuted on the New York Stock Exchange with a successful initial public offering of $1.2 billion. The company’s share price has climbed since the IPO.

Last week American cybersecurity firm Rapid7 acquired Israel’s IntSights Cyber Intelligence Ltd. for approximately $335 million.

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