Analysis
Bites, an Israeli startup that turns company procedures into short AI-generated training videos for frontline workers, has raised a $40 million Series A led by PeakSpan Capital, Dealroom reported on October 29, 2026.
What Bites does
Founded in 2020 by CEO Eran Heffetz, a former restaurateur, along with Tal Nagler Almog and Hagai Horovitz, Bites is headquartered in New York and Tel Aviv. Its AI Studio converts PDFs and standard operating procedures into videos of up to 90 seconds in more than 150 languages, delivered through WhatsApp, SMS, Microsoft Teams, Slack or a direct link -- channels deskless frontline workers already use rather than a dedicated learning app. Dealroom reports the company sees engagement above 90% within three weeks of rollout and 161% net revenue retention among existing customers, which span hospitality, retail, consumer goods and manufacturing, including named enterprise clients Unilever, Coca-Cola, Shake Shack and Compass Group.
How much has Bites raised?
Bites' funding history, per Calcalist and Dealroom:
“Founded in 2020 by CEO Eran Heffetz, a former restaurateur, along with Tal Nagler Almog and Hagai Horovitz, Bites is headquartered in New York and Tel Aviv.”
- Seed, October 2021 -- $5 million, led by Vertex Ventures Israel, with Surround Ventures, Oryzn Capital, Lyra Ventures and J-Ventures participating. Calcalist reported the company's user base at more than 200,000 at the time.
- Series A, October 2026 -- $40 million, led by PeakSpan Capital.
- Total funding to date -- $55 million, per Dealroom, a figure that implies additional capital beyond the seed and Series A rounds disclosed above.
The jump in check size reflects both the five years since its seed and the broader AI-training wave reshaping frontline workforce tools, which has drawn growth investors like PeakSpan into a category once dominated by conventional corporate learning-management software vendors.
Who invested in Bites
- PeakSpan Capital -- led the Series A; partners Phil Dur and Charlie Reinkemeyer will join Bites' board.
- Vertex Ventures -- existing investor, participated.
- Horizon Capital -- existing investor, participated.
- Rittenhouse Ventures -- existing investor, participated.
- Lyra Ventures -- existing investor from the 2021 seed, participated again.
Frontline training market and competitors
CEO Eran Heffetz said in the announcement: "Every company already knows training matters. What they've never had is proof, or speed." Bites competes with conventional learning-management systems and newer microlearning platforms, arguing its channel-based delivery -- training inside apps workers already open, rather than a dedicated portal -- outperforms dedicated LMS software on completion and retention.
The broader bet is that deskless, frontline workforces -- retail associates, hospitality staff, warehouse and factory workers -- have been underserved by enterprise software built for desk-based employees with company email and laptops. Bites' pitch to buyers like Unilever and Compass Group is that meeting workers on channels they already check daily, rather than asking them to log into a separate portal, is what actually drives the completion rates legacy LMS vendors have struggled to hit. That framing is why growth investors, not just early-stage AI funds, are now writing Series A checks into a category that used to be considered unglamorous corporate software -- a pattern Pulse's funding tracker has logged across enterprise AI deals through 2026.
What to watch next
Watch whether Bites' 161% net revenue retention holds as it expands into the US market with the new capital, and whether PeakSpan's board seats push the company toward further enterprise accounts beyond its current roster of consumer-facing brands.