Israel has a new most valuable startup: project management software-maker Monday.com.
Monday.com announced on Tuesday it raised $150 million in a Series D investment led by Sapphire Ventures. The round more than tripled Monday.com's valuation to $1.9 billion from $550 million in just one year, according to a source with knowledge of the transaction—making Monday the highest-valued startup in its category of work software and the most valuable startup based in Israel.
"The world is digitising, and people are looking for better ways to do what they do," says co-founder Roy Mann. "It's a huge opportunity."
Founded by Mann and Eran Zinman as dapulse in 2014, Monday has emerged as one of the leaders in work software that helps teams track projects and assign tasks to individuals and groups, a category known as project management. Some 80,000 paying businesses use Monday today, up from 35,000 a year ago, and include businesses like Philips, WeWork and Wix.com. More than half of monthly users engage with Monday's software daily, according to Zinman, and Monday.com says it will close this year with more than 150 integrations with other work tools.
"We want to connect everything to Monday," says Zinman. He credits Monday's integrations with other apps and a column store, which allows users to import others' customisations for project workflows, as two of the reasons the company claims to have cut churn and grown fast in recent months. "It makes us a true platform to build any tool you want."
At Sapphire Ventures, managing director Nino Marakovic said that after tracking Monday for several years, its growth meant the firm "could no longer resist." To Sapphire Ventures, Monday solves for the large percentage of office work that isn't easily standardised and covered by existing software (Sapphire Ventures' largest limited partner is SAP). "It's a little bit of a race to be the center of gravity where you spend most of your time," he says.
To back Monday, however, came at a much higher price tag than it did just a year ago for the startup's previous investors. Monday's valuation of $1.9 billion came as the company grew its annualised revenue from $18 million to $50 million in 2018, and to an anticipated $120 million this year, all while more than doubling its customer base. "From a revenue and growth perspective, it's quite a unique asset," Marakovic says.