Bites Raises $40M Series A Led by PeakSpan for AI Frontline Training

Bites, an AI-native frontline training platform headquartered in New York and Tel Aviv, has raised a $40 million Series A led by PeakSpan Capital.

Existing investors Vertex Ventures, Horizon Capital, Rittenhouse Ventures and Lyra Ventures also participated, bringing total funding to $55 million. PeakSpan's Phil Dur and Charlie Reinkemeyer will join the company's board. The company says the capital will fund U.S. expansion and product development.

Training Built for Workers Without Desks

Founded in 2020 by Eran Heffetz, Tal Nagler Almog and Hagai Horovitz, Bites delivers short, branded video lessons to deskless employees through the messaging and collaboration tools they already use. Ynetnews reported that the videos arrive over WhatsApp or Microsoft Teams with no app or login required. Lessons run up to 90 seconds, and a single video supports more than 150 languages.

The product suite includes an AI Studio that turns a PDF, standard operating procedure or idea into a branded training video in minutes, and an Ask-AI feature that answers employee questions using only approved company content. Ynetnews reported that Heffetz, the CEO, previously co-owned Tel Aviv restaurants including Vicky Cristina, Bread Story and Little Italy, and that Nagler Almog previously ran the psychometric exam preparation department at Kidum, where she met Horovitz, an electrical and computer engineering graduate.

“Running restaurants taught me that business performance comes down to what people do on the floor, every day, and whether they have the knowledge and support to do it well,” Heffetz said.

From Engagement to Business Results

Bites' next step is tying training directly to business metrics such as sales and operational performance. According to Ynetnews, the platform connects to clients' sales, CRM and HR systems, and the company is developing automated detection of performance declines that triggers targeted training.

Its customer list spans hospitality, quick-service restaurants, retail, consumer goods and manufacturing, including Unilever, Coca-Cola, Shake Shack, Wynn Resorts, The Venetian and Compass Group. Bites says customers typically reach more than 90% engagement within three weeks, and it reports 161% net revenue retention.

“Few companies get customers to come back and ask for more. Bites does,” said Aviad Ariel, general partner at Vertex Ventures.

Why It Matters

The company puts the global deskless workforce at an estimated 2.8 billion people, roughly 80% of all workers. That group has historically been underserved by corporate training software built for laptops and learning portals. Bites is betting that meeting workers inside chat apps, in their own language, solves the access problem, and that linking lessons to sales and operations data solves the harder one: proving training is worth paying for.

The 161% net revenue retention figure suggests existing customers are expanding their use, a signal that helps a company land a lead investor like PeakSpan. Bites remains lean, with 30 employees split between New York and a Tel Aviv development center, per Ynetnews, and it plans to grow its Israel engineering team while building out U.S. sales and a partner and distributor network. Ynetnews also reported plans to move into banking, insurance, and contract workforce sectors, a test of whether a model born in restaurant kitchens can travel to more regulated industries.

Source

GlobeNewswire — Bites Raises $40M Series A to Turn Frontline Training into a Business Performance Engine