Israeli Tech Startup Employees Become Millionaires After Intel Spin-off Sale

Employees of the Israeli tech startup RealSense are set to receive substantial payouts, with over half of the staff earning approximately one million shekels each following the company's acquisition. RealSense, which began as an internal division within Intel, was slated for closure by the tech giant. However, a group of 110 employees rallied, securing $53 million in external investment to save the company.

This rescue effort led to the company's sale to American barcode camera firm Cognex for $500 million. Investors will receive their share, while employees will benefit from over $100 million in various compensation packages. The acquisition comes just 14 months after RealSense was spun off from Intel.

RealSense, specializing in 3D cameras and sensors for robotics, was initially established 16 years ago within Intel. Despite its innovative technology, Intel's former CEO, Pat Gelsinger, viewed it as a non-core, unprofitable venture and sought to shut it down. However, Nadav Orbach, the Israeli executive brought in to manage RealSense, convinced management of the burgeoning potential in robotics, arguing the company's future lay outside Intel.

Following this, Intel agreed to relinquish the asset, allowing for private investment, including from Intel Capital. With the support of partners and customers, including a German robotics firm, RealSense secured $53 million from investors like Taiwan's MediaTek. This capital infusion allowed the company to retain its employees and secure major clients such as Boston Dynamics and Unitree Robotics.

RealSense now holds over 50% of the 3D camera market for robotics and has a partnership with Nvidia. The company is projected to generate $80-$90 million in revenue this year. While profitable and growing, its size made an independent IPO unlikely, paving the way for the successful acquisition.