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10 Aerospace, Defense, and Security Israeli
Start-ups to Watch in 2015
January 2015
2
The Team
Aviv Bergman Business Analyst
Yaki Baranes Manager
Aerospace, Defense & Security
Lead Analyst
Director
Steven Webb VP Aerospace, Defense & Security
Department
3
Content
Section Slide Number
Introduction and Methodology 3
The 10 Selected Start Ups 5
The Frost & Sullivan Story 16
4
Introduction and Methodology
5
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
6
The 10 Selected Startups (in alphabetical order)
7
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
8
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
9
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
10
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
11
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
12
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
13
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
14
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
15
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
16
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
