Tel Aviv-based NoTraffic, an AI traffic intersection management service, raised a $50M Series B led by M&G Investments, following a $17.5M Series A in July 2021
Rebecca Bellan / TechCrunch :
Context & Ripple Effects
NoTraffic's $50M Series B, led by M&G Investments, extends a run of large rounds for Israeli AI transport-optimization companies. The clearest template is Optibus, which reached a $1.3B valuation on a $100M Series D in 2022 after climbing from a $40M Series B in 2018 — a funding curve NoTraffic now appears to be following, with a $17.5M Series A in July 2021 behind it.
The lead investor is the notable detail: M&G is an asset manager rather than a typical venture firm, and its involvement signals institutional capital treating intersection management software as infrastructure-like. The later $90M Series C led by PSG Equity confirms the company kept scaling on this trajectory.
First-order effects
- NoTraffic gains the capital to expand its AI-driven intersection management deployments beyond the base built with its $17.5M Series A, with M&G's balance sheet rather than a venture fund now underwriting the growth.
Second-order effects
- M&G leading the round pushes other institutional investors toward mobility-optimization software as an asset class, raising the financing bar for rivals and validating the Optibus-style path of successive, larger rounds for Israeli transport AI.
Third-order effects
- If institutional capital keeps flowing into intersection and transit optimization, city traffic management shifts from municipal hardware procurement toward software platforms financed like infrastructure, with Israeli startups — NoTraffic, Optibus, and adjacent players like Foretellix in autonomous-vehicle verification — anchoring the category.
The trend: AI-driven transport optimization is graduating from venture-backed pilots to institutionally financed infrastructure platforms, with Israeli startups setting the funding pace.