Israeli AI Training Startup Bites Secures $40 Million in Series A Funding
Israeli AI training startup Bites has secured $40 million in a Series A funding round led by PeakSpan Capital, bringing its total funding to $55 million. The platform delivers personalized video training directly to mobile devices for frontline workers.
The Israeli startup Bites, which develops an artificial intelligence-powered employee training platform, has announced the completion of a $40 million Series A funding round. This latest investment brings the company's total funding to $55 million. The round was led by PeakSpan Capital, with participation from existing investors Vertex Ventures, Horizon Capital, Rittenhouse Ventures, and Lyra Ventures.
Founded in 2020 by CEO Eran Hefetz, COO Tal Nagler-Almog, and CTO Hagai Horowitz, Bites emerged from Hefetz's practical experience managing restaurants and bars in Tel Aviv, including Vicky Cristina, Little Italy, Bread Story, Orevuch, Apartment, and Sublet. Hefetz noted that the platform was born out of a firsthand realization that business success depends on frontline employees having the right knowledge to perform their tasks effectively.
AI-Powered Training for Non-Desk Employees
According to Bites, approximately 80% of the global workforce—amounting to 2.8 billion people—do not work at a desk. These frontline employees frequently interact directly with customers and drive the outcomes of retail promotions and product launches. Traditional Learning Management Systems (LMS) often fail to reach this demographic effectively.
The Bites platform utilizes generative AI to convert standard procedures, documents, or concepts into training videos within minutes, matching the organization's brand identity, uniforms, and products. These videos are delivered directly to employees' mobile phones via channels like WhatsApp and Microsoft Teams, eliminating the need for cumbersome login procedures or dedicated apps. Furthermore, an integrated Ask-AI tool enables workers to access role-specific professional information at any time through natural language chat.
Growth Plans and Global Expansion
The newly secured capital will be used to scale operations internationally, particularly in the United States, and to expand the company's research and development center in Israel. Bites currently employs 30 people across its Tel Aviv development hub and New York headquarters. The company plans to enhance its AI engine, grow its sales and customer success teams, and expand into new sectors such as banking, insurance, and organizations employing contract workers.
Phil Dur, founder and managing partner at PeakSpan Capital, praised the platform's focus on frontline personnel, noting that operational managers quickly adopt the tool due to its measurable impact on productivity. Aviad Arieli, general partner at Vertex Ventures, emphasized the strong retention and expansion demand from existing enterprise clients, which include major global brands such as Unilever, Coca-Cola, Shake Shack, Wynn Resorts, The Venetian, and Compass Group.
