Bites, a company that makes AI training software for employees who do not work at desks, has raised a $40m Series A led by PeakSpan Capital. Existing investors Vertex Ventures, Horizon Capital, Rittenhouse Ventures and Lyra Ventures also took part. Bites announced the round on 29 October 2026.
The round brings Bites' total funding to $55m. Phil Dur and Charlie Reinkemeyer of PeakSpan will join the company's board. The valuation was not disclosed.
“Every company already knows training matters. What they've never had is proof, or speed”Eran Heffetz, Co-founder and CEO, Bites
What Bites does
Bites turns a company's procedures and know-how into short, branded training videos. Each lesson lasts up to 90 seconds, according to CTech, and a single video can be delivered in more than 150 languages. Staff receive the lessons through WhatsApp, SMS, Microsoft Teams, Slack or a link, without installing an app or logging in, according to Unite.AI.
The company targets frontline workers in hospitality, quick-service restaurants, retail, consumer goods and manufacturing. Its customers include Unilever, Coca-Cola, Shake Shack, Wynn Resorts, The Venetian and Compass Group. Bites says customers usually reach more than 90% engagement within three weeks, and it reports net revenue retention of 161%, meaning existing customers spent 61% more over a year.
The company cites an estimate that about 2.8 billion people, or roughly 80% of the world's workforce, do not work at desks. Bites wants to connect its training data with sales, customer, HR and operations data so companies can see whether training changes business results.
Bites also offers a tool that turns PDF, Word and PowerPoint files into short editable videos with generated narration, and an Ask AI feature that answers staff questions from approved company content, Unite.AI reported.
Who is behind it
Bites was founded in 2020 by chief executive Eran Heffetz, chief operating officer Tal Nagler Almog and Hagai Horovitz. It is headquartered in New York and Tel Aviv, where its development centre is based, and has 30 employees, according to CTech.
Heffetz previously ran restaurants, and he said that experience taught him that business performance depends on what people do on the floor every day. He is moving to New York to build the company's US commercial team.
Phil Dur, co-founder and managing partner of PeakSpan, said frontline employees make up about 80% of the global workforce and that Bites was built for that group. He added that the company is building a data foundation that links training to business outcomes.
Sources differ on Horovitz's title: CTech lists him as chief information officer, while Unite.AI describes him as chief learning officer. Nagler Almog runs operations as chief operating officer.
What the money is for
Bites will use the funding to expand in the US, building out enterprise sales and customer success from New York. It also plans to grow partnerships with resellers and other channel partners, and to move into banking, insurance and businesses that rely on outside workers.
The rest of the money goes into the platform itself, in particular the work to tie training data to business metrics. Heffetz told CTech that AI has been a significant catalyst for the company.
Before this round, Bites raised a $5m seed round, according to CTech. The new round is eight times that size.
Company website: mybites.io