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Monday.com celebrates its IPO at the Nasdaq, June 10, 2021.
Source: Nasdaq

In April, Insight Partners’ Jeff Horing hopped on a flight to Israel for a breakfast with tech CEOs. It was also an opportunity to pay a visit to his firm’s first international office, which had opened less than two years before.

Now, CEOs from two of those companies are visiting him in New York. They’re actually coming to ring the bell on the Nasdaq, as Israel’s high-growth companies line up to hit the public markets.

Last week, collaboration software-as-a-service (SaaS) vendor Monday.com held its IPO and closed on Friday with a market cap of $8.2 billion. This week, fellow Israeli software company WalkMe, whose technology is designed to simplify enterprise software and applications, is scheduled to go public with a valuation of up to $2.6 billion

Insight is the biggest investor in both. The firm owns a 43% stake in Monday.com and controls 32% of WalkMe. Its combined ownership in the two companies is currently worth about $3.9 billion.

“For a long time, Israel has been the start-up hub, a hive of activity,” Horing wrote in an email, in response to written questions. “But these start-ups are scaling successfully at a more rapid pace.”

Money is flooding into Israeli tech. The country’s start-ups raised $5.37 billion in the first quarter, more than double the amount a year earlier and 89% above the fourth quarter, which was a record period, according to a report from IVC and law firm Meitar.

Game developer Playtika, based in Herzliya, went public in January and has a market cap of $10.6 billion, making it the fourth most-valuable publicly traded tech company in Israel, according to FactSet. Monday.com ranks fifth and WalkMe is poised to crack the top 10.

For Insight, the launch of an Israeli operation in late 2019 marked the firm’s first office opening outside the U.S. since its founding in 1995. But Insight had been investing in and around Tel Aviv for over two decades.

Horing said the firm did its first deal in Israel in 2000. He highlighted Enigma, a developer of software to manufacturers, and Shunra, a network virtualization company that was acquired by Hewlett-Packard, as two early investments.

“I’ve always loved visiting Israel and have many memories at tiny market restaurants eating incredible food, arguing for hours over different technologies and SaaS strategies,” Horing said. “My team and I spent countless hours flying back and forth to Israel, often spending weeks at a time getting to know entrepreneurs and working alongside our portfolio companies.”

Prior to Monday.com, Insight’s marquee investment had been in website creation software company Wix, which went public in 2013. Insight co-led a $40 million round in 2011 and had a 12% stake at the time of the IPO.

Wix’s stock price has since multiplied 17-fold, giving the company a $15 billion market cap, second only to Check Point Software among Israeli tech companies.

“Wix was a foundational investment for Insight in Israel,” Horing said. Wix co-founder Avishai Abrahami is also on Monday.com’s board. Along with Abrahami and Nir Zohar, Wix’s operating chief, “we’ve co-invested in many Israeli deals over the years,” Horing said.

Acquiring an Israeli firm’s portfolio

The most glaring detail on Monday.com’s cap table is the size of Insight’s stake.

Typically when a venture-backed company goes public with a multibillion-dollar valuation, the top firm would hold no more than 30% of the outstanding shares, often much less.

Insight took a unique approach to get to 43%. In February 2019, seven months before opening its Tel Aviv office, Insight purchased the majority of a fund portfolio held by an Israeli firm called Genesis Partners, whose partners were leaving for other ventures.

Within that fund, which closed in 2009, Genesis had invested in Monday.com’s seed and Series A financing rounds. Insight first came in as part of the $25 million Series B in 2017.

After acquiring the contents of the Genesis fund, Insight was able to merge the two firms’ holdings, building a stake that’s now worth $3.1 billion. Genesis was also an early investor in two other Insight-backed companies: online music learning company JoyTunes and business intelligence company Sisense.

Monday.com co-founder and co-CEO Roy Mann told CNBC that Insight was tapping into a big change happening in Israeli tech.

“They had a very strong conviction in Israel and the Israeli ecosystem,” Mann said in an interview after the IPO. “The whole industry matured to a level where entrepreneurs want to build big companies and want to hold them for a long time. Insight was early on to recognize that and really go and back a lot of amazing Israeli companies.”

Horing joined co-founders Mann and Eran Zinman in ringing the Nasdaq’s opening bell on Thursday. The company also had 250 employees come in from cities across the U.S.

Horing will have the opportunity to do it again this week for the WalkMe IPO. In 2017, Insight led a $75 million investment in WalkMe. By following on over the course of two more financing rounds, Insight built up a 32% stake that’s worth $750 million at the top end of WalkMe’s IPO range.

Horing said Insight now has 80 “operating experts” in Israel working with portfolio companies and has expanded in Tel Aviv to take over the space formerly occupied by JFrog, which went public on the Nasdaq last year.

As for what Horing finds most exciting coming out of Israel these days, he said there’s no shortage of opportunities to put money to work.

“Israel is firing on all cylinders,” he said. “Of course cyber is a strong sector but it is much broader to a wide group of SaaS, infrastructure, fintech, gaming, and ad tech.”

WATCH: JFrog CEO on the company’s public debut and outlook

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Cognition to buy AI startup Windsurf days after Google poached CEO in $2.4 billion licensing deal

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Cognition to buy AI startup Windsurf days after Google poached CEO in .4 billion licensing deal

In this photo illustration, a man seen holding a smartphone with the logo of US artificial intelligence company Cognition AI Inc. in front of website.

Timon Schneider | SOPA Images | Sipa USA | AP

Artificial intelligence startup Cognition announced it’s acquiring Windsurf, the AI coding company that lost its CEO and several other senior employees to Google just days earlier.

Cognition said on Monday that it will purchase Windsurf’s intellectual property, product, trademark, brand and talent, but didn’t disclose terms of the deal. It’s the latest development in an AI talent war, as companies like Meta, Google and OpenAI fiercely compete for top engineers and researchers.

OpenAI had been in talks to acquire Windsurf for about $3 billion in April, but the deal fell apart, and Google said on Friday that it hired Windsurf’s co-founder and CEO Varun Mohan. Google is paying $2.4 billion in licensing fees and for compensation, as CNBC previously reported.

“Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Cognition CEO Scott Wu wrote in a memo to employees on Monday. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”

Cognition didn’t immediately respond to CNBC’s request for comment. Windsurf directed CNBC to Cognition.

Cognition is best known for its AI coding agent named Devin, which is designed to help engineers build software faster. As of March, the startup had raised hundreds of millions of dollars at a valuation of close to $4 billion, according to a report from Bloomberg.

Both companies are backed by Peter Thiel’s Founders Fund. Other investors in Windsurf include Greenoaks, Kleiner Perkins and General Catalyst.

“I’m overwhelmed with excitement and optimism, but most of all, gratitude,” Jeff Wang, the interim CEO of Windsurf, wrote in a post on X on Monday. “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”

Wu said that the acquisition ensures all Windsurf employees are “treated with respect and well taken care of in this transaction.” All employees will participate financially in the deal, have vesting cliffs waived for their work to date and receive fully accelerated vesting for their, according to the memo.

“There’s never been a more exciting time to build,” Wu wrote.

WATCH: Google snatches Windsurf CEO after OpenAI deal dissolves

Google snatches Windsurf CEO after OpenAI deal dissolves

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Musk’s xAI faces European scrutiny over Grok’s ‘horrific’ antisemitic posts

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Musk's xAI faces European scrutiny over Grok's 'horrific' antisemitic posts

The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024. 

Jonathan Raa | Nurphoto | Getty Images

The European Union on Monday called in representatives from Elon Musk‘s xAI after the company’s social network X, and chatbot Grok, generated and spread anti-semitic hate speech, including praise for Adolf Hitler, last week.

A spokesperson for the European Commission told CNBC via e-mail that a technical meeting will take place on Tuesday.

xAI did not immediately respond to a request for comment.

Sandro Gozi, a member of Italy’s parliament and member of the Renew Europe group, last week urged the Commission to hold a formal inquiry.

“The case raises serious concerns about compliance with the Digital Services Act (DSA) as well as the governance of generative AI in the Union’s digital space,” Gozi wrote.

X was already under a Commission probe for possible violations of the DSA.

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Grok also generated and spread offensive posts about political leaders in Poland and Turkey, including Polish Prime Minister Donald Tusk and Turkish President Recep Erdogan.

Over the weekend, xAI posted a statement apologizing for the hateful content.

“First off, we deeply apologize for the horrific behavior that many experienced. … After careful investigation, we discovered the root cause was an update to a code path upstream of the @grok bot,” the company said in the statement.

Musk and his xAI team launched a new version of Grok Wednesday night amid the backlash. Musk called it “the smartest AI in the world.”

xAI works with other businesses run and largely owned by Musk, including Tesla, the publicly traded automaker, and SpaceX, the U.S. aerospace and defense contractor.

Despite Grok’s recent outburst of hate speech, the U.S. Department of Defense awarded xAI a $200 million contract to develop AI. Anthropic, Google and OpenAI also received AI contracts.

CNBC’s April Roach contributed to this article.

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Meta removes 10 million Facebook profiles in effort to combat spam

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Meta removes 10 million Facebook profiles in effort to combat spam

Meta CEO Mark Zuckerberg looks on before the luncheon on the inauguration day of U.S. President Donald Trump’s second presidential term in Washington on Jan. 20, 2025.

Evelyn Hockstein | Reuters

Meta on Monday said it has removed about 10 million profiles for impersonating large content producers through the first half of 2025 as part of an effort by the company to combat “spammy content.”

The crackdown is part of Meta’s broader effort to make the Facebook feed more relevant and authentic by taking action against and removing accounts that engage in “spammy” behavior, such as content created using artificial intelligence tools.

As part of that initiative, Meta is also rolling out stricter measures to promote original posts from creators, the company said in a blog post.

Facebook also took action against approximately 500,000 accounts that it identified to be engaged in inauthentic behavior and spam. These actions included demoting comments and reducing distribution of content, which are intended to make it harder for these accounts to monetize their posts.

Meta said unoriginal content is when images or videos are reused without crediting the original creator. Meta said it now has technology that will detect duplicate videos and reduce the distribution of that content.

The action against spam and inauthentic content comes as Meta increases its investment in AI, with CEO Mark Zuckerberg on Monday announcing plans to spend “hundreds of billions of dollars” on AI compute infrastructure to bring the company’s first supercluster online next year.

This mandate comes at a time when AI is making it easier to mass-produce content across social media platforms. Other platforms are also taking action to combat the increase of spammy, low-quality content on social media, also known as “AI slop.”

Google’s YouTube announced a change in policy this month that prevents content that is mass-produced or repetitive from being eligible for being awarded revenue.

This announcement sparked confusion on social media, with many users believing this was a reversal on YouTube’s stance on AI content. However, YouTube clarified that the policy change is aimed at curbing unoriginal, spammy and repetitive videos.

“We welcome creators using AI tools to enhance their storytelling, and channels that use AI in their content remain eligible to monetize,” said a spokesperson for YouTube in a blog post to clarify the new policy.

YouTube’s new policy change will take effect on Tuesday.

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