10 ADS Israeli Start Ups to Watch in 2015

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10 Aerospace, Defense, and Security Israeli Start-ups to Watch in 2015 January 2015

Transcript of 10 ADS Israeli Start Ups to Watch in 2015

Page 1: 10 ADS Israeli Start Ups to Watch in 2015

10 Aerospace, Defense, and Security Israeli

Start-ups to Watch in 2015

January 2015

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The Team

Aviv Bergman Business Analyst

[email protected]

Yaki Baranes Manager

Aerospace, Defense & Security

[email protected]

Lead Analyst

Director

Steven Webb VP Aerospace, Defense & Security

Department

[email protected]

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Content

Section Slide Number

Introduction and Methodology 3

The 10 Selected Start Ups 5

The Frost & Sullivan Story 16

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Introduction and Methodology

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Introduction and Methodology

• The Israeli start-up industry is one of the country’s major growth engines.

• In 2014, Israeli start-ups raised almost $15 billion, setting a new annual record.*

• Start-ups have been established in the aerospace, defense, and security (ADS) industry.

• In this study, ADS start-ups to watch in 2015 are discussed.

• Frost & Sullivan analyzed companies that have a good fit with the following criteria:

o A young company (less than 10 years)

o Relatively high percentage of the company’s budget is allocated for research and

development (R&D)

o Developing or offering an innovative and unique technology or solution

o Small in size (less than 50 people)

o Currently raises or already raised money to support its R&D

o Main offering is for aerospace, military, and/ or security end users

• From a long list of such start-ups, we gathered 10 that are worth watching because of their

high potential for a significant progress in 2015.

• Some of the start-ups selected are only at the seed level, others are on the edge of

becoming independent and profitable companies.

Source: Frost & Sullivan

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The 10 Selected Startups (in alphabetical order)

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Geomine ISR

• Founded: 2007

• Key people: Founder and CEO: Avi Buzaglo Yoresh

• Capital raised: $5 million

• Technology & market: A unique and advanced technology for

a wide detection of mines. “UN estimations are that between

200,000 km² to 800,000 km² of land in more than 70 countries is

considered to be affected by landmines and unexploded

extraneous remnants of warfare”. There are also wide areas that

are currently closed to people and usage due to a potential risk of

mines, but the clearing process takes time or is not happening at

all. Geomine’s technology can solve that with a unique solution

that covers wide areas because the mapping and detection are

done from the air”.

• Why Frost & Sullivan thinks it is worth watching: Mine fields

have been a significant global concern and new technologies that

can better detect and clear areas are constantly being sought.

The company has been working with Israel and other foreign

governments, and the technology has now reached a mature level

and can be deployed globally. In 2015, the company will deliver a

major border project with a Tier I defense company, and together

with recent growth in number of employees , 2015 looks very

promising for Geomine.

Image Source: Geomine

Market Segment:

Mine Detection

Source: Frost & Sullivan, UN

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ICS2

• Founded: 2014

• Key people: Founders - Gil Kroyzer (CEO), Eyal Rozenman,

Omri Green

• Capital raised: N/A

• Technology & market: A Cybersecurity solution for control

systems of power, oil, gas, and petrochemicals plants. “The

company’s portfolio offers varied solutions that are machine-

learning systems designed to learn industrial processes. From

learning and analyzing to detecting, and guarding, ICS2 solution

covers all the process” .

• Why Frost & Sullivan thinks it is worth watching: For a

relatively young start-up, ICS2 already has a significant number of

installations in Israel and abroad. The company seems to have

cracked the formula of understanding how facilities work and how

to supply a tailor-made cyber solution that can actually protect a

facility’s operations. In 2015, we expect the company to broaden

its installations locally and globally and to keep positioning itself

as one of the promising cyber start-ups in the area of critical

infrastructure.

Image Source: ICS2

Market Segment:

Cyber

Source: Frost & Sullivan, ICS2

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InnerEye

• Founded: 2014

• Key people: Prof. Amir Geva,( Founder & CTO), Prof. Leon

Deouell ( Founder), Uri Antman (CEO)

• Capital raised: N/A

• Technology & market: A platform that combines human

visual perception, innovative classification of brainwaves,

and computer vision algorithms. “InnerEye provides a solution

for fast, accurate, real-time target detection in visual data. The

company’s solution are addressing the defense, HLS markets as

well as some segments in the commercial markets”.

• Why Frost & Sullivan Think it’s Worth Watching? Similar to

InSoundz, InnerEye made it to finals at the MIT and US DOD

challenge. The company’s value is in its unique proposition that

includes the integration of visual perception, innovative

classification of brainwaves, and computer vision algorithms to

create a security solution of the future. With its management

team’s experience in the areas of neuro-technology and neo-

science, it can be expected that, in 2015, the company will

continue to develop its futuristic concept and bring it to the next

level.

Image Source: InnerEye

Market Segment:

Security

Source: Frost & Sullivan, Innereye

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InSoundz

• Founded: 2013

• Key people: Ziv Azmanov

• Capital raised (known): $100,000 (won the MIT Enterprise

Forum challenge for security companies)

• Technology & market: An audio intelligence to the

security market. “InSoundz’ solution captures and isolates

any sound of interest in extremely noisy environments. It

serves as powerful ears for advanced surveillance systems,

providing for better intelligence and security” (from MIT

Challenge website)

• Why we think it is worth watching: Frost & Sullivan sees

the security market, especially the security of major public

places such as air ports, shopping malls, and even cities, as

a significantly growing segment in the upcoming years. More

and more entities are adopting new and advanced solutions

to fight constantly changing threats—and InSoundz’s solution

is just one of these. The company won the MIT and US DOD

challenge for security startups at the beginning of 2015, and

we expect the company to keep receiving positive feedback

as it progresses.

Market Segment:

Security

Source: Frost & Sullivan, MIT Challenge website

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More—Military Optical RF Equipment

• Founded: 2010

• Key people: Roman Rabinovich, founder and CTO

• Capital raised: $2 million

• Technology & market: An Electronic countermeasure

(ECM) and electronic service measure (ESM) technologies.

“More’s unique portfolio offers new, cutting-edge technologies

for ECM and ESM applications. The company’s solution

replaces the standard copper-based RF (radio frequency) and

digital connectivity solutions with optical technology. The ECM

sensor is photon-based RF instead of the traditional and more

common DRFM (digital radio frequency memory) technology.

The ESM sensor technology offers a new set of capabilities in

the area of radar detection”.

• Why we think it is worth watching: More’s cutting-edge

technology has been long watched by the Israeli defense

ministry (also invested in the company) and by the local and

global defense industries. The company’s ECM sensor will be

presented, for the first time, at the upcoming Aero India

conference (18-22 February) . First contracts are expected to

be signed this year; thus, 2015 is expected to be a

breakthrough year.

Market Segment:

ECM/ESM

Image source: MORE

Source: Frost & Sullivan, More

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NowForce

• Founded: 2008

• Key People: Assaf Shafran ( co-founder, CEO), Anshel

Pfeffer (co-founder, COO)

• Capital raised: $6 million

• Technology & market: A Personal Security and critical

response applications. “NowForce is offering a personal

offering safety and emergency applications, based on cloud

technology, for private and public security end users such as

campuses, federal agencies and law enforcement. The apps

provides reduced response times, full situational awareness,

and enhanced communications solutions”

• Why we think it is worth watching: NowForce provides

affordable and user friendly solutions. The company has

facilities in Israel and established a facility in the United

States to expand its operations. Among its clients are OTTER

in India and AT&T. The company also provided solutions for

the Euro 2012 games. In 2015, the company is expected to

keep growing its consumer numbers and capital with an

increase of $5 million.

Market Segment:

Personal Security

Image Source: NowForce

Source: Frost & Sullivan, NowForce

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Roboteam

• Founded: 2009

• Key people: Yosi Wolf and Elad Levy (founders)

• Capital raised: $2 to $3 million (estimation)

• Technology & market: Unmanned ground vehicles (UGV) for

tactical missions. The company developed a line of lightweight,

fast deployable unmanned ground systems for tactical purposes .

The company’s products are already operational, among its

clients are the US military, Special Forces, and SWAT teams, as

well as other elite units around the globe.

• Why we think it is worth watching: The company’s MTGR

(micro tactical ground robot) solution is considered by many to be

the most functional and reliable unmanned ground robot for

tactical missions. In October 2014, it was reported that the US

Army Research Lab and the Joint IED (improvised explosive

device) Defeat Organization (JIEDDO) conducted a critical new

test of small ground and air unmanned assets aimed at detecting

improvised explosive devices in culverts in subterranean

environments and Roboteam was one of the selected companies

to present its capabilities, participating alongside much bigger

players such as L-3, QinetiQ, and Elbit Systems. In 2015, it is

expected that the company will grow in sales and will start taking

it first steps in the commercial market (non defense) with new

undisclosed technologies.

Market Segment:

UGV

Image source: Roboteam

Source: Frost & Sullivan, Roboteam

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ThetaRay

• Founded: 2013

• Key people: Mark Gazit (CEO), Amir Averbuch (co-founder

and chief scientific officer)

• Capital raised: $12 million

• Technology & market: A Cybersecurity for industrial

Internet. The industrial Internet domain is a major security

headache for companies, and that is where ThetaRay steps

in. The company’s technology is capable of protecting any

industrial environment/machine/device without any rules or

patterns and is able to detect the first signs of unknown cyber

or operational threats, automatically and in realm time.

• Why we think it is worth watching: Although ThetaRay has

only been established since 2013, the company has

managed to raise more than $12 million. ThetaRay has

paying customers and significant revenues ( more than $1

million), and is currently working on a cybersecurity project in

New York City for an energy facility with GE (monitoring over

27,000 sensors in a state-of-the-art facility). In the financial

segment, the company finished deploying a solution for the

second-largest financial institution in Israel, Hapoalim Bank.

The solution is working and monitoring trading desk activities

to detect insider threats (malicious and non-malicious).

Market Segment:

Cyber

Image source: ThetaRay

Source: Frost & Sullivan, ThetaRay

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Water-Gen

• Founded: 2009

• Key people: Arye Kohavi (president), Avi Peretz

• Capital raised: $10 million

• Technology & market: Solutions for generation of drinking

water for troops. Water-Gen began its operation in the defense

market, and is now garnering attention from the commercial

market as well. The company designs solutions for supplying

water. Among these solutions are atmospheric water generation

(drinking water-from-air), treatment of air conditioning run-off

water, and battery-operated mobile water purification units.

• Why we think it is worth watching: First, the company was

recognized as one of the world's 50 most innovative companies

for 2014 by Fast Company Magazine. Also, Arye Kohavi, Water-

Gen's president, was chosen as one of the world's 100 leading

global thinkers of 2014 by Foreign Policy Magazine. Second, the

company managed to create growing interest in an area that did

not seem to be a focus for defense entities. After proving the

ability to create 14 liters of waters from 1 liter of consumed fuel,

the company’s solutions have been procured and adopted by

armies worldwide, as well as commercial “white product”

companies. In addition to additional contracts in 2015 with

commercial and defense clients, we expect the company will gain

new investments and capital.

Market Segment:

Defense

Image source: Water-Gen

Source: Frost & Sullivan, Watergen

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Windward

• Founded: 2010

• Key people: Ami Daniel( co-founder & CEO), Matan Peled

(co-founder & VP product)

• Capital raised: $5 million

• Technology & market: Maritime ISR and security. Using

data from various sources, such as AIS reports transmitted

from ships, synthetic aperture radar (SAR) imagery, and

optical satellite imagery, the company’s systems provide

maritime intelligence that can detect suspicious vessels and

events and highlight and alert the user in real time. This allows

decision makers to overlook routine maritime trade, and

provides them with early warning about suspicious vessels

heading to their waters and ports.

• Why we think it is worth watching: Frost & Sullivan

forecasts show the maritime domain as a significant upcoming

concern for countries and commercial maritime companies.

The Windward solution is one of the only solutions to answer

the market need for covering the “wild west” of maritime

activities. In 2015, the company is expected to continue its

growth in customers, projects, and personnel.

Market Segment:

Maritime Security

Image source: Windward

Source: Frost & Sullivan, Windward