Israeli Intelligence Vets Raise $20M for Developer Tracking

The Challenge of Reaching Developers with Marketing

Software developers are often skeptical of marketing efforts, yet identifying and providing them with valuable tools and services remains crucial. Consequently, developers frequently engage in discussions about dev kits and tool evaluations on platforms such as forums, Hacker News, Reddit, and Stack Overflow.

Onfire: Capturing Developer Intent

Israeli startup Onfire aims to assist software vendors in capitalizing on this existing buying intent. The company actively monitors public online forums to understand which tools developers are discussing. Artificial intelligence is then employed to pinpoint the companies these developers work for and identify key decision-makers within those organizations.

Furthermore, the platform integrates data regarding budgetary cycles, providing B2B sales teams with the insights needed to optimize the timing and relevance of their outreach efforts.

Securing $20 Million in Funding

Onfire is officially launching after securing $20 million in funding, as exclusively reported by TechCrunch. This includes a recent $14 million Series A round co-led by Grove Ventures and TLV Partners, both Israeli venture capital firms.

IN Venture, the venture capital arm of Japan’s Sumitomo Corporation, and LeumiTech 77, a fund commemorating Israel’s 77th anniversary, also participated in the funding round.

Founders' Background and Expertise

Onfire’s CEO, Tal Peretz, CTO, Shahar Shavit, and CPO, Nitzan Hada, all share a common background as alumni of Unit 8200, the Israel Defense Forces’ intelligence unit. This unit, comparable to the NSA, is known for its advanced AI and data tools, and has both received accolades and faced scrutiny regarding alleged mass surveillance.

The founders recognized the potential to leverage their intelligence expertise within the SaaS sector after transitioning to the private technology industry.

Early Success and Client Base

The startup estimates having facilitated “more than $50 million in closed deals” for its clients since its beta launch a year ago. Early adopters of the platform include companies like ActiveFence, Aiven, Cyera, Port, and Spectro Cloud, all of whom offer solutions in areas such as data management, cybersecurity, FinOps, and observability to technical buyers.

Addressing Data Privacy Concerns

The company’s practice of monitoring public data to identify commenters’ employers naturally raises questions, given the founders’ intelligence backgrounds. However, Lotan Levkowitz, managing partner at Grove Ventures, emphasizes a mutually beneficial outcome.

“Our customers are pleased, and importantly, even their potential customers are happy, as they receive relevant pitches at the optimal time,” he stated.

A Data-First Approach to AI Sales

Onfire differentiates itself through its vertical, data-centric focus. While numerous AI-powered tools aim to enhance enterprise sales, Peretz argues that personalized outreach requires a solid foundation of data. “We distinguished ourselves by beginning as a data-first company and subsequently integrating the AI engine,” he explained.

Filling a Gap in the Market

According to Levkowitz, Onfire is addressing a previously identified gap: software infrastructure companies were not effectively utilizing AI in their go-to-market (GTM) strategy. “The missing element was the data,” he added.

The Evolving Landscape of Enterprise Sales

Onfire’s emergence coincides with a shift in the challenges companies face when relying solely on product-led growth for enterprise sales. Some industry experts believe a new data layer is now essential to support GTM teams, a conclusion Grove Ventures reached before connecting with Onfire.

Levkowitz facilitated introductions between Onfire and companies his team had identified while developing this thesis.

Extensive Market Research

“Prior to writing any code, we conducted interviews with approximately 275 revenue leaders in the IT sector,” Peretz revealed. The co-founders discovered that direct sales efforts still accounted for the majority of revenue for most companies, but the adoption of AI tools was beginning to change this dynamic.

The Need for Context in Outreach

They found that buyers could benefit from AI-based tools that provide contextual information, enabling them to “do more with less.” However, CISOs, CTOs, and engineering teams, often considered challenging to reach, are now facing an increased volume of noise due to AI-driven mass outreach, making context even more valuable.

Tailoring Sales Approaches

Peretz emphasized the importance of aligning signals with customer context. For instance, selling a data solution to a large organization requires a different approach than selling a cybersecurity solution.

Levkowitz highlighted that with each new customer Onfire acquires, the dataset improves, creating a positive feedback loop.

Building a Competitive Moat

This compounding data layer is what Onfire considers its key differentiator, protecting it from competition with established CRM providers like Salesforce and HubSpot. “This specialized approach allows them to offer a unique value proposition to the go-to-market teams of software infrastructure companies,” Levkowitz stated.

Future Plans and Expansion

Peretz indicated that the new funding will be used to expand the team in areas such as AI, research and development (R&D), and sales. The core AI system is developed in Israel, where 60% of the team is located, while the “go-to-market machine” is based in New York, anticipating the U.S. to be a primary market.