Startup Company Granulate Gains $30 Million From Investors in Series B

By James White Sunday, February 7, 2021

In the latest funding round for the startup company, investors backed network optimization software business Granulate to the tune of $30 million. Optimization software tools like those developed by the startup are crucially important to ensuring the smooth performance of digital industries in times where online traffic is rapidly growing for many businesses.

Data engineer installing a hard drive into a server rack.

Investors who participated in the Series B included firms Insight Partners, Hetz Ventures, Dawn Capital, TLV Partners, and lead investor Red Dot Capital Partners. Red Dot Capital targets early-stage Israeli tech startup companies and businesses.

“Granulate’s unique technology and impressive growth since their last funding round reflects a rising market demand for their game-changing optimization solution,” said Red Dot Capital’s managing partner Yaniv Stern. “For companies facing rising infrastructure costs or focusing on operating cost reduction, Granulate offers a solution that can drive additional improvement regardless of any other solutions already deployed by their clients.”

Network Strain Can Make or Break Sales for Businesses; Granulate Is Here to Help

Founded in 2018 by entrepreneurs Asaf Ezra and Tal Saiag, the tech startup company based out of Tel Aviv, Israel, seeks to cut the computing cost of applications by using “AI driven infrastructure and workload optimization.” Server optimization is very important to the success of companies and businesses from the ecommerce industry to the media streaming sector. Whether it is ensuring that your favorite show is not buffering constantly or loading the checkout page for your online shopping cart, latency and bandwidth usage optimization are essential.

The product works by prioritizing important functions and identifying possible bottlenecks in application servers. The end result is a server that is able to manage high traffic flows without sacrificing response times and unnecessary computing power, which, in turn, keeps expenses down for the company. The startup claims its software can improve the server performance of companies and businesses utilizing the tool by 40%.

Server Optimization Software Industry on the Rise

Businesses large and small, spanning many industries, rely on efficient and low-latency servers to function effectively. Market research projects the global network optimization services market to reach $9.08 billion in 2022 while growing at a compound annual growth rate (CAGR) of 13.7%. Granulate’s competitors in the optimization tool business include startup company Spot, which was acquired by NetApp, a cloud services company out of California. Investments in NetApp’s cloud optimization branch total $52.6 million.


Network optimization startup company Granulate raised $30 million from investors in a recent Series B funding round. Using AI software to prevent bottlenecks, organize data flow, and cut computing costs, the business taps into a growing market as online traffic continues to expand for companies in industries from ecommerce to media streaming.

About the Author

Headshot for author James White

James White is a Michigan State University graduate with a B.S. in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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