Elsewhere Partners invests in BackBox as it moves global HQ to Texas – Austin Business Journal – Austin Business Journal

A tech company in Israel is moving its home base to North Texas.
BackBox, which assists with network management and other services, is shifting its global headquarters to Dallas from Tel Aviv.
The move comes as it announced it closed a series A round of funding of $32 million. It was led by Elsewhere Partners, the Austin-based venture capital firm founded by Austin Ventures alumni Chris Pacitti and John Thornton.
BackBox is getting new leadership as well. Andrew Kahl, Elsewhere Partners operating adviser, was named the new CEO. The two locations will collaborate, Kahl said.
With the move, the Dallas-Fort Worth region is adding yet another headquarters tied to technology. Recently, Hall Technologies, which provides audio and visual products, said it was moving to DFW from Tustin, Calif.
“Texas is a known hub for technology,” Kahl said in an email. “Dallas offers an ideal location for BackBox to support our growth and our international customer base as it offers direct flights to many global locations.”
The company has been looking in the city of Dallas and is buttoning down a lease agreement in the Park Cities area for a permanent locale. It’s in a co-working space temporarily.
BackBox will keep its engineering teams along with research and development based in Israel — while focusing on growing its operations, customer service and sales teams in the U.S., the statement said.
Co-founder and former CEO Arik Elias will remain with the company and support international sales efforts. Co-founder and CTO Rafi Zvi will continue to lead engineering and R&D efforts in the Israeli office.
BackBox, which works with more than 180 partners, provides network automation, security and management services.
The company aims to continue enhancing its network vulnerability detection and remediation features — and plans to expand its cloud automation and SaaS (software-as-a-service) capabilities.
“The network automation market is on the verge of a significant expansion as companies look to secure and manage increasingly complex network environments and a never-ending list of devices,” Pacitti said in a statement.
Pacitti and Thornton launches Elsewhere Partners in 2017 with a focus on B2B software investments. It has backed Austin-based companies such as Vyopta and ActivTrak. In March, the firm filed regulatory paperwork indicating plans to raise up to $175 million for a new investment fund called Elsewhere Partners II LP. It raised about $70 million for its first fund, which closed in 2019, and a few other smaller funds.
Austin Business Journal’s Will Anderson contributed reporting.
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