Koch Industries, Porsche invest in Israeli deep data startup proteanTecs

Company developing advanced software solutions to monitor health, performance of electronic systems nabs new $50m investment

Ricky Ben-David is a Times of Israel editor and reporter

Israeli software startup ProteanTecs' management team in Israel. (Courtesy)
Israeli software startup ProteanTecs' management team in Israel. (Courtesy)

Koch Industries’ venture capital arm, Koch Disruptive Technologies (KDT), and Porsche have invested in Israeli deep data startup proteanTecs, a developer of an advanced software solution to monitor the health and performance of electronic systems before they become faulty.

The $50 million investment, announced on Thursday, was led by KDT and adds to the Israeli company’s growth equity round of $45 million last August, also led by Koch’s VC division.

In addition to Porsche, the major shareholder of Volkswagon Group, investors in proteanTecs’ extension round included MediaTek, a Taiwanese fabless semiconductor company; Advantest, a Japanese manufacturer of automatic testing equipment for the semiconductor industry; and Allied Group subsidiary Champion Motors, a major Israeli auto importer.

ProteanTecs was established in 2017 by semiconductor industry veterans that include co-founders of Mellanox Technologies, the Israeli developer of high-speed servers and storage switching solutions, acquired two years ago by chipmaker Nvidia for $6.7 billion. The startup emerged from stealth mode in 2019 and immediately announced a $35 million investment led by Intel Capital.

A cloud-based analytics platform developed by proteanTecs applies machine learning algorithms to measurements extracted from on-chip monitors, which it calls agents, and offers insights and visibility into a given electronic system’s health and performance throughout its lifecycle.

The startup’s customers include leading system OEMs (Original Equipment Manufacturer), fabless startups, and cloud-based companies in industries spanning the automotive, communications and data center sectors.

According to the announcement, proteanTecs marked a “momentous year” in 2020 and 2021, and the new financing “reinforces the growing need for full lifecycle visibility, spanning all segments of the electronics industry.

The funds will be used to expand globally, accelerate product development, and pursue strategic collaborations, the company added.

“Since KDT’s first investment in proteanTecs, we’ve seen their continued success in scaling and developing their technology, and this new investment is a testament to our confidence in the company,” said KDT Managing Director Eli Groner, a former director-general of the Prime Minister’s Office.

“The addition of leading strategic partners across multiple verticals will enable proteanTecs to continue to stay ahead of the curve in the exciting new world of real-time electronics monitoring.”

Shai Cohen, CEO and co-founder of proteanTecs, said that the investment “solidifies our strategy of bringing together market leaders’ diverse viewpoints to solve a cross-stake challenge, while validating the need for advanced monitoring solutions from design to field.”

According to the company, one of the main drivers fueling a shift to an integrative approach in electronics manufacturing is the automotive industry, which is in the midst of pursuing pursuing innovations in the electric vehicle market, due to rising customer demands.

Lutz Meschke, member of the board of management responsible for investment management at Porsche SE, said that “due to the fast-paced technological advancements and the ever-growing requirements for new chip generations, we see enormous market potential for proteanTecs’ technology leveraging predictive reliability, performance and power management.

“We see clear benefits and the necessity for the use of this technology across a wide range of industries including the automotive industry,” he added.

ProteanTecs is headquartered in Israel, with offices in New Jersey, California, Germany, and Taiwan.

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