Elron Ventures cashes out IronScales stake for $26M as PSG increases its holding
Elron Ventures cashes out IronScales stake for $26M as PSG increases its holding
The sale marks a 23-fold return on Elron’s 2019 investment in the AI-powered phishing protection leader.
Elron Ventures has sold its 7.6% stake in the cybersecurity company IronScales for $26 million, reflecting a valuation of $340 million for IronScales. The buyer is the PSG investment fund, which already owns shares in the company and is increasing its stake.
Elron is expected to record a profit of $7.5 million from this transaction.
IronsSales, provider of email security solutions, developed an AI-powered automated platform for detecting and preventing phishing attacks. It was the first cybersecurity company in Elron's portfolio, with Elron leading the initial investment round in partnership with Rafael. In 2019, Elron invested $1.1 million in IronScales alongside Rafael.
Between 2020 and 2021, Elron partially realized its investment in IronScales, generating $12.3 million. To date, Elron has recorded total profits of $38 million from its investment in IronScales, with the latest transaction yielding a 23x return on its original investment.
Last week, Elron also sold its stake in Cybersixgill, another portfolio company, to Bitsight for $115 million. This sale generated a profit of $22.5 million, representing a 31% return on investment.
Elron operates as a stock exchange-listed venture capital fund with holdings in 19 companies across cybersecurity, B2B software, and medical devices. Despite recent successful exits, Elron’s market value is estimated at NIS 263 million (approximately $70M).
In September, the U.S.-based investment company Arieli EL completed its acquisition of control in Elron. Arieli purchased 59.14% of Elron’s shares for $53.2 million, valuing the company at $90 million.
Last week, Yaron Elad, CEO of Elron, and his partner Elik Etzion announced their intention to step down from their positions.
Elron shares have risen 24% since the beginning of the year, including dividends. Without dividends, the increase stands at 3.6%.
