StreamElements to lay off 20% of employees less than a year after raising $100 million led by SoftBank
StreamElements to lay off 20% of employees less than a year after raising $100 million led by SoftBank
The company, which provides engagement and monetization tools for live and VOD content creators, joins Cybereason and Trax on the list of Israeli SoftBank-backed startups making cuts
Dozens of StreamElements employees discovered on Sunday that even a $100 million funding round led by SoftBank doesn’t make a company immune to cutbacks. StreamElements announced that it would be laying off 20% of its employees, most of whom are not based in Israel. The company employs 170 people in total, including 70 in Israel. It is believed that some of those being laid off will be offered a different role in the company.
StreamElements is the third Israeli SoftBank-backed startup to announce significant cuts recently, joining Cybereason and Trax.
“Due to the current situation in the market, we are working to adjust our plans in order to sustain our high growth rate while creating a path to profitability. As a result we are required to make adjustments to our workforce,” StreamElements wrote in a statement.
StreamElements was founded in 2017 by Or Perry, Doron Nir, Gil Hirsch, and Reem Sherman. The company has a platform-agnostic approach and provides production tools and services, such as overlays, alerts, chatbots, merchandise stores, and tipping. The company has over 1.1 million creators around the world using its broadcasting tools and services.
StreamElements raised $100 million in funding led by SoftBank Vision Fund 2 last September. The round also included participation from PayPal Ventures, MoreTech, and existing investors State of Mind Ventures, Pitango First, Menorah, and Mivtach Shamir, among others.
