Is this the coolest Israeli company or what? Well, according to the Zirra algo-crowd rating engine, Jerusalem based company Lightricks is one of Israel’s most promising early stage startups.
Lightricks’ apps Facetune, a fun and powerful portrait & selfie photo editor, and Enlight, an all-in-one photo editor, combine as constant leaders in the paid app section on both Google Play as well as Apple’s App Store.
Lightricks’ consistent success generated rave user reviews, but these do not tell the full story of the company that must already be on the M&A radar of giants such as Facebook, Google and others. In fact, Lightricks claims ownership of genuine intellectual property in both camera enhancement technologies as well as picture driven advertising.
The Zirra engine has valued Lightricks as follows:
|Current Valuation||Value at Exit||Window Of Opportunity|
Lightricks is powered by the following advantages, but since life is not all rainbows and butterflies, they are also hindered by certain red flags:
(+) Lightricks has 5-6 million customers for Facetune photo touch-up app, generating ~$15M-$20M of revenue for that app alone.
(+) Lightricks has also generated over 1-2 million customers, at $5 each for Enlight, which is like Photoshop for your iPhone. (Another $5M-$10M) million in revenue.
(+) Lightricks claims referenced ownership of proprietary camera and advertising software, both relevant for a notable acquisition by an industry monster such as Facebook or Google.
(-) Still, Lightricks is dependent on a pay per use model. Competing free apps can put revenue model at risk.
(-) And…Competing photo apps such as Instagram can and are, to a certain degree, likely to come up with a similar feature set.
When it comes to subject matter ratings, the Zirra Algo-crowd rating engine has rated Lightricks with the following rating set, showing more evidence of Lightricks knowing their stuff and winning at creating photo-editing apps.
Tickled to know more about Lightricks? Here’s some scoop:
(+) The 4 founding team members are dead equal in terms of equity holdings, something that you don’t see every day. Preventing sour faces from the owners of the company over the course of time is a Big Plus for Lightricks!
(+) While already enjoying a growing revenue, Lightricks recently landed $10M in funding from Carmel Ventures, one of Israel’s leading investment companies. This has created super favorable financial conditions and is an excellent signal of usage of funds for growth.
(+) Lightricks has broken the “single app” challenge by already having produced 2 winners on both grossing and rating fronts. Getting it both together, ratings and revenue, that’s not trivial at all.
(+) About 50% of Lightricks’ work force is comprised of software engineers and 20% are focused on design. Awesome ratios for companies with such numbers.
With things looking they way they are for Lightricks, it will be very interesting to witness what 2016 will bring them. And maybe even more important: what they will bring us. Will Lightricks be able to score a hattrick in the year to come? Only time will tell.