NEW YORK, March 27, 2019 /PRNewswire/ -- CB4, an AI software company for brick and mortar retail teams, announced their completed series B for $16M. The round was led by Octopus Ventures with the participation of Sonae IM and existing investors Sequoia Capital and Pereg Ventures.
Octopus Ventures is one of Europe's largest Venture Capital teams, with successful exits from Microsoft, Twitter, Amazon, and Google. "You read a lot about ecommerce giants, but online sales account for just 14% of the total retail market share," said Eyal Rabinovich, a partner at Octopus. "This leaves a huge opportunity for brands that can provide a better and more efficient shopping experience to their customers. The demand for easy-to-integrate and easy-to-use technologies with proven ROI has never been greater. We led this round because CB4 has a proven track record of providing retailers with just that."
CB4's software uses machine learning and advanced AI algorithms to identify high local demand for specific products in stores. When a product fails to sell to predicted demand levels, CB4 sends an alert to the store manager, highlighting the floor execution issue and suggesting ways to fix it. Retailers using CB4's software see a 0.5-2% increase in net new sales, improved customer experience, and increased product findability.
"What impressed me about CB4 is the scalability of their software and team," said Haim Sadger, a board member at Sequoia Capital. "It's not just enterprise software. We've seen CB4 flourish in small regional chains and multinational retailers with thousands of stores. With implementation that can roll out to hundreds of stores in a couple of days, minimal data prerequisites, and a clear ROI, CB4's AI solution is set to disrupt the retail market."
Eduardo Piedade, CEO of Sonae IM, a European-based corporate venture investor specializing in retail technology, telecommunications technology, and cybersecurity, said, "CB4 has a first-class team that developed a distinctive AI-based technology to help brick and mortar retailers address operational inefficiencies with direct and measurable top-line impact."
"It's fantastic to have the support of such experienced and respected VC partners," said Yoni Benshaul, CEO of CB4. "We've witnessed extraordinary growth in the last few years, and we've seen some of the world's largest retailers successfully adopt our software to improve their store execution. We're committed to these partnerships and will continue to nurture and grow them as we expand our service offerings and client base."
CB4 provides a patented software solution for brick and mortar retailers that increases net new sales by up to 2% using simple sales data. The software requires no in-store hardware and most customers are up and running in a single day. Founded in Israel by Professor Irad Ben-Gal, head of the AI Lab at Tel Aviv University and Chairman of CB4, and Dr. Gonen Singer, GM of the Israeli branch, CB4 has offices in New York, London, & Tel Aviv, and is a proud partner of Octopus Ventures, Sequoia Capital, Sonae IM, and Pereg Ventures.
Matthew McAlister, 347.819.1900