Cyabra, a Tel Aviv-based startup that helps public and private organizations detect and counter misinformation campaigns by spotting fake accounts on social media, announced plans Tuesday to merge with special purpose acquisition company (SPAC) Trailblazer Merger Corporation I and list on the Nasdaq.
Founded in 2018, Cyabra's investors include OurCrowd, which led the company's $5.6 million Series A, as well as Peter Thiel's Founders Fund, Harpoon Ventures, Alabaster, Accomplice, Red Shepherd Ventures, Summus Z, TAU Ventures and Capital Y Management.
The deal values Cyabra at $70 million, and the company expects the merger to close by the end of the year.
SPACs, which were all the rage just a few years ago, are now pretty rare. Most of the time you hear about them these days, it's because a company went public via a SPAC and then went bankrupt. The SEC recently adopted new rules that will soon make the process more similar to a traditional IPO. But it's clear there are still some startups looking to take advantage of the process.
Sciabra says it has worked with 19 governments over the past 12 months to help protect elections.
The company's corporate clients include WarnerMedia, and Warner is a good example of how Cyabra can be used. For the release of “Wonder Woman 1984” in 2020, Warner used Cyabra to identify fake profiles on social media that were talking about the movie and threatening the brand's reputation. Leveraging that knowledge, Warner was able to report and remove those profiles. At the same time, this process allowed the company to identify and focus on real influencers.
Elon Musk also worked with Cyabra to analyze bot activity before acquiring Twitter.
“Our proprietary technology, developed by veteran senior officers from Israeli Special Operations Command (SOCOM), enables us to use advanced algorithms and sophisticated data analytics to identify when automated bots are being used to spread lies on social media platforms,” said Dan Bramey, CEO and co-founder of Cyabra. “Today, enterprise customers and governments around the world use our products to identify attacks as they occur, providing them with the intelligence they need to mitigate or prevent damage, and protecting their citizens and brands from the spread of increasingly sophisticated disinformation.”
Earlier this year, former CIA Director and US Secretary of State Mike Pompeo joined the company's board of directors. “Cyabra is a critical partner in the fight against disinformation. The company's ability to uncover fake accounts, false narratives, and manipulated AI content is essential to protecting our democracy and safeguarding our national security. Cyabra's dedication to these goals makes it a vital ally in our efforts to defend against threats to our nation,” Pompeo said in a statement.