Jerusalem-based visual content creation app development company Lightricks has confirmed a $ 130 million Series D round, comprising $ 100 million primary funding and $ 30 million secondary funding. That puts the company’s current valuation at $ 1.8 billion and brings its total funding to $ 335 million.
In July 2019, a $ 135 million Series C fundraising round saw Lightricks valued at $ 1 billion, so the new round represents an 80% increase in value in just over two years. It’s a rapid rise for a company founded just eight years ago.
The new D cycle was supported by Insight Partners and Hanaco Venture Capital in New York, while Migdal Insurance, Altshuler Shaham and Shavit Capital invested in Lightricks for the first time. Investors who had participated in previous rounds also showed great confidence, with Goldman Sachs Asset Management, Claltech, Harel Insurance and Finance and Greycroft returning to increase their holdings.
Lightricks has created a diverse suite of creativity apps with image and video tools for social media users such as Facetune2, Facetune Video, and Filtertune. Their large ecosystem includes products designed for more general use, including Boosted, Beatleap, Photoleap, Videoleap, Motionleap, Artleap, and Lightleap.
Together, these apps now have 547 million installs and 29 million monthly active users, covering a significant proportion of content creators.
Lightricks also saw tremendous growth during the pandemic as more and more people began to take the potential opportunity to be a professional content creator seriously. The total number of installations has increased by 42% over the past 12 months. Investors will be particularly encouraged by the growth of paid subscribers of 24% to 5.1 million last year. This forms the foundation of Lightricks’ $ 200 million revenue in 2021 so far.
The founders and investors of the startup expect this market to continue to grow at a rapid rate. Currently, people export 78 million visuals from Lightricks apps per month. The lion’s share of these assets are used as social media posts, and production is steadily increasing.
Pasha Romaovski of Hanaco Venture Capital sums up their ambitions when it comes to broader trends. “The designer economy has changed the way we as a society experience social media,” he said. “The public consumes information daily through the various content channels. “
“The Lightricks platform gives creators a larger, more professional and better set of tools to optimize content,” continued Romaovski. “At a time when we see content creators monetizing social media content to new levels, it is clear that Lightricks’ platform has the ability to create a one-stop shop that will be meaningful to its users. “
Indeed, this is the strategic vision of Lightricks co-founder and CEO, Zeev Farbman, for the company. “We’re here to give creators the tools, services and connections to help them produce and publish their content more easily, creating a strong creator economy that allows them to earn a respectable income,” he said. told Entrepreneur about three months ago.
Today, Lightricks is poised to achieve 40% revenue growth in 2021 compared to 2020. Cycle D funding will also allow them to make critical acquisitions to push them further. It will be a mix of smaller and larger purchases, according to Farbman,
Although the company’s headquarters are currently located in Jerusalem, it has global ambitions with expected headcount growth in London, Shenzhen and Haifa. They currently have 460 employees and aim to reach 1,000 employees by the end of 2023.
If Lightricks continues on this path of success, Farbman and his leadership team will create a critical mass of jobs in the creative technology sector and solidify its status as an integral part of a growing industry.