Tech Unicorn Riskified Moves $500M Out Of Israel

Israeli fraud protection company Riskified is moving all of its funds – which amounts to $500 million – out of the country.

CEO Eido Gal came to the decision due to the Israeli government’s proposed judicial reforms, which many believe will undermine the country as a democratic state by severely weakening the Supreme Court.

“The laws being enacted might lead to the dismantling of our judicial system’s independence,” he wrote in a letter to employees.

“It is highly likely that the matter would lead to a major and protracted economic recession in Israel.

“More importantly, this will result in Israel changing from a democracy with liberal values into a more authoritarian state. I believe that only bad results will come from this ‘reform.'”

He later stated that Riskified will be expanding hiring at its R&D site in Lisbon, Portugal, and is offering relocation packages and support for employees interested in making the move.

The company, which achieved unicorn status in 2019 (a valuation of over $1 billion), uses machine learning algorithms and user behavior analytics to prevent account takeover, monitor payments, and detect fraudulent transactions for e-commerce websites.

Gal also expressed concern that the financial situation in the country will continue to deteriorate, and that the Israeli government will restrict transfers and withdrawals of large sums in order to protect financial stability.

Riskified was founded in 2012, and is headquartered in Tel Aviv and in New York City.