'All investors and employees made money': At-Bay CEO defends $575 million sale
At-Bay CEO Rotem Iram defended the company's $575 million sale to Munich Re, noting that the valuation reflects a more realistic market compared to the 2021 unicorn bubble. Despite the lower price, Iram emphasized that the company has grown significantly in premiums and revenue since its inception.
Why it matters
The sale illustrates the broader correction in tech valuations as the industry shifts from growth-at-all-costs to a focus on profitability and realistic market conditions.
“The disappointment is for people who didn’t understand that the world has changed. A company’s valuation needs to be close to the cash it generates,” Rotem Iram, CEO and co-founder of Israeli cyber insurance company At-Bay, told Calcalist after the company was sold to German insurance giant Munich Re Group for $575 million. Iram was referring to the gap between At-Bay’s 2021 valuation, during the unicorn bubble, when the company was valued at $1.35 billion, and the price at which it is now being sold. “We’re not in the same world,” he said. “In 2021, we had $50 million in insurance premiums. Today, we have nearly six times that amount in premiums, along with $30 million in cyber revenue. “I understand that in 2021 we received a high valuation in a zero-interest-rate market with high multiples and raised money according to the market conditions at the time.
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