Visa Acquires Israeli Cybersecurity Startup BioCatch in $2.4 Billion Deal

Visa, the American credit card giant, has entered the Israeli development scene by acquiring BioCatch, a cybersecurity startup founded in 2011. This marks Visa's second acquisition ever and highlights BioCatch as a key cybersecurity provider for major banks in the US and Western countries. The deal values BioCatch at $2.4 billion, reflecting rapid growth since 2024 when 57% of its shares were sold to the Israeli-managed private equity fund Permira at a $1.3 billion valuation.

Permira's acquisition was one of the fastest and most successful exits in Israel, with early investors like the Jerusalem-based OurCrowd group profiting significantly. OurCrowd, which pioneered a unique investment model aggregating thousands of accredited investors for tech funding rounds, initially invested $3 million in BioCatch in 2014 when the company was valued at $25 million. The group maintained a 10% stake until the first sale two years ago and benefited from the recent transaction as well.

BioCatch's CEO, Gadi Mazor, who previously served as OurCrowd's CTO, joined the startup in 2017 to lead operations amid internal challenges and helped steer the company through growth phases. The COVID-19 pandemic accelerated demand for BioCatch's fraud prevention technology due to increased remote work and regulatory requirements for banks to compensate fraud victims. This contributed to the company's valuation rising from $300 million in 2020 to over $1.3 billion by 2024.

OurCrowd's founder John Medved established the group to democratize venture investing by enabling smaller accredited investors to participate in rounds typically dominated by institutional investors. Over time, OurCrowd shifted focus from early-stage startups to more mature companies and attracted institutional investors like Japan's NTT and Sweden's Scania.

The BioCatch acquisition underscores the success of this investment model and the growing importance of Israeli cybersecurity firms in the global financial sector. Both BioCatch and OurCrowd declined to comment on the deal. This transaction is considered one of the most significant exits for OurCrowd and highlights the evolving landscape of Israeli tech investments.