ClickTale Raises $35 Million With the Help of Private Equity Firm KKR


January 29, 2015

Israeli company, ClickTale, has announced it has raised $35 million in its most recent funding round. The company, which provides software to allow website owners see what people do on their site, managed to raise most of the funds with the help of the private equity firm KKR.


ClickTale Looking for Global Growth
The aim of the fund is to help the company expand into global markets. It has in recent years focused on expanding in North America and the hope is the equity raised can further boost its software development.


Lucian Schönefelder, KKR’s director of the European Media & Digital Investment team, told in the official statement, “The potential of ClickTale’s Digital Experience technology is boundless”. The fundraised equity is used to “accelerate ClickTale’s global rollout, similar to what we have done in our recent investments in Fotolia, arago and BMG,” Schönefelder said.


ClickTale is faced up with a tough challenge, as its global competitors include the likes of IBM. IBM recently acquired the customer experience management firm, Tealeaf, in a move to boost its global presence in the sector.


According to Reuters, ClickTale already has an impressive clientele, which includes companies like Home Depot and Walmart. In 2013, the company raised $17 million in investments.


KKR’s First Israeli Tech Investment
For the private equity firm, KKR, the investment marks its first technology investment in Israel. Lucian Schönefelder said in the statement, KKR is “thrilled to have more exposure to Tel Aviv, a world-class technology hub for companies with global ambitions.”


Although the company is one of the biggest private equity investors in Israel, it has previously stayed out of the technology sector. This despite the fact that its track record in investing in technology companies globally is strong. Market Watch pointed out the firm has previously invested over $13 billion in equity in software, Internet, media and IT-infrastructure since 2000. Furthermore, KKR has focused on growth equity investments, such as the ClickTale deal, in the past few months.


Strong Investment Group
KKR is joining with other investment firms that have been backing ClickTale in the past. The biggest investors include the UK venture capital firm, Amadeus Capital Partners, as well as Goldrock Capital and Viola Credit. Amadeus has a strong background in technology investment.


Israel has been able to attract large investors in the past. The most recent data by Israel Venture Capital Research Center suggests, the first nine months of 2014 saw private equity investment in the country amount to $1.2 billion. Over half of this came from foreign investors.


On top of this, Israeli private equity firms are looking to China in their efforts to seek new investment. The Jerusalem Post reported on Wednesday that a delegation of 22 venture capital and private equity firms have arrived in China for a week-long investment trip. The aim is to attract Chinese investors to the lucrative tech industry in Israel. China’s big e-commerce giant, Alibaba, has already made its first investments in the country and could help spark a bigger interest.


If you want to find out private equity deals in the Israeli tech sector, you can do so at the DealMarket website.


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