Transcription unicorn Verbit searching for new CEO to replace Tom Livne
Transcription unicorn Verbit searching for new CEO to replace Tom Livne
The company's revenues have plateaued around $80 million over the past year, with no visible signs of significant growth on the horizon. The company and Livne are in agreement that a new CEO is needed to lead Verbit to the next phase
Israeli transcription unicorn Verbit, is looking for a new CEO to succeed co-founder Tom Livne, who has managed the company since its inception in 2017. The company refused to comment on the matter. The two other co-founders Eric Shellef and Kobi Ben Tzvi left the company long ago, selling all their holdings.
Tom Livne and Verbit, which has developed an AI-powered real-time transcription and captioning platform, looked to be on top of the world in August 2021 when the company raised $250 million in a Series E at a valuation of $2 billion, with $100 million going to early investors and employees in secondary deals. Livne didn’t sell any of his shares in the Series E, saying at the time that he was waiting for an upcoming IPO.
However, very little has gone according to plan for Livne and Verbit ever since, with sources close to the company telling Calcalist that the company has been deliberating with Livne recently regarding what would be the best way forward, with everyone in agreement that a new CEO is needed to lead Verbit to the next phase.
One of the challenges burdening Verbit is its recent acquisition spree, with some of the acquired companies struggling to integrate and enhance the company. Additionally, the advancement of various artificial intelligence technologies has impacted revenue, as some clients have opted for cheaper alternatives, even at the cost of accuracy. Consequently, the company's revenues have plateaued around $80 million over the past year, with no visible signs of significant growth on the horizon. Despite this, Verbit maintains a healthy cash reserve of approximately $100 million, providing a solid foundation for future endeavors.
Verbit laid off 60 employees last July in a second round of layoffs. Verbit employed 1,048 people at the time, around double from a year earlier due to turning many of its regular transcribers into employees rather than freelancers.
