Top 10 Israeli Startups to Watch in 2019

Alex Mitchell
Credit: Enterprise Europe

By popular demand, I’m releasing another edition of my “Top 10 [Location] Startups to Watch in 2019”

Over the past few months, I’ve written:

Compared to my previous four posts, Israel has the most mature tech ecosystem by far. After the United States and China, Israel has the most public companies listed on the tech-heavy NASDAQ exchange.

The Israeli Tech sector is an unprecedented success story, enjoying a period of consistent growth over multiple decades. Israel is first in the world in R&D investment and in venture capital investments as a percentage of GDP.

An average of 600 new startups are established every year in Israel and there are 307 multinational R&D centers there, including ones for Intel, Google, IBM, and Apple (NoCamels).

The World Economic Forum reported that Israel has about 4,000 active startups, and raises venture capital per capita at two-and-a-half times the rate of the US and 30 times that of Europe.

8% of Israelis currently work in the tech sector (Israel Innovation Authority), many at tech heavyweights like MobileEye, Wix, Gusto, Outbrain, and Taboola.

The Not-So-Rare Israeli Unicorn (credit: NoCamels)

The government is currently undertaking a major effort to double the number of people employed in tech by increasing the percentage of women, recruiting older engineers, and better engaging the Arab population in the region.

Although the number of venture deals in Israel has fallen by 10% since 2015, the capital raised has increased dramatically every year, reaching $6.5B in 2018.

How Did I Choose This Top 10?

With so many great startups to choose from, how could I possibly narrow the list down to only 10? This one was far from easy.

I tried to dig very deep here, looking to find the companies that haven’t had a massive break yet, aren’t household names, and aren’t getting weekly TechCrunch shout-outs.

Enough background, let’s get to the list!

The Top 10 Israeli Startups to Watch

  1. Trellis: Food System Intelligence

Trellis helps farmers around the world with crop forecasting, supply chain insights and market intelligence. While AgTech has become a crowded space lately (it even has its own moniker!), there is plenty of room for Trellis to win and win big in this multi-trillion dollar addressable market.

Offices In: Tel Aviv

Total Funding: Not disclosed

2. Shiperd: Importing and Exporting Simplified

If you’ve ever had to import or export something that passed through customs, you know just how antiquated and inefficient the process is.

Shiperd’s software helps manage air, ocean, and road freight as it moves across borders and around the world. Best of all Shiperd is completely free to use.

Offices In: UK

Total Funding: Not disclosed

3. Zebra Medical Vision: AI for Medical Imagery

According to Zebra:

“[Our] mission is to provide radiologists the tools they need to make the next leap in patient care. The demand for medical imaging services is continuously increasing, outpacing the supply of qualified radiologists and stretching them to produce more output, without compromising patient care. Only by adopting new technology that significantly enhances the capabilities of radiologists, can this crisis be mitigated.”

One incredibly unique part of Zebra Medical Vision is their business model.

Instead of signing big, opaque, enterprise deals with hospitals, they instead charge a flat $1 per scan analyzed. It feels like the API-ificiation of medicine has finally begun.

Similar to how Twilio brought transparency and transactional access to communications, Zebra has this potential opportunity with healthcare.

Offices In: Kibbutz Shefayim

Total Funding: $50MM

4. missbeez: On-Demand Beauty Services

missbeez offers on-demand manicures, pedicures, hairstyling, makeup, massages, and more. They offer these services through a rapidly growing network of independent contractors.

Offices In: Tel Aviv, Madrid, London

Total Funding: $5.2MM

5. Puls: Home Services within 1 Hour

For anyone who’s owned a home, you can completely empathize with the problem Puls is trying to solve. In order to get a technician out to fix your dishwasher, your fridge, or any other home issue, the normal process goes something like this:

  • Spend 30 minutes googling to find the right local expert/company
  • Call them (their website doesn’t allow online scheduling of course) and get an appointment on the calendar several days to weeks from now
  • The technician shows up within a 4 hour window (sometimes!) and solves your problem on the first visit (again, sometimes!)
  • You pay far, far more than you expected (always!)

Puls is working to improve this horrible home repair process flow with technicians dispatched on-demand within 1 hour. The market potential is big here, and Puls is well positioned to grow rapidly in this space.

Offices In: Tel Aviv, San Francisco

Total Funding: $93MM

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6. Sales Conversation Intelligence

Gong is bringing science (aka Machine Learning) to Sales. They’ve built a pretty impressive product that listens to all of your sales and customer calls, helping identify the trends, words, and patterns that lead to success (and just as importantly, the ones that don’t).

Gong also helps educate sales teams with methods that work when a customer asks for a discount or mentions a competitor. Any product that unlocks more sales in a repeatable, scalable way has the opportunity to generate major revenue (no brainer).

Offices In: Herzliya, San Francisco

Total Funding: $68.1MM

7. At-Home Medical Diagnostics

Going to the doctor’s office for a simple urine test is a complete waste of time (for both you and the doctor). Even worse, it’s a dramatic waste of money. Although the insurance company model obscures much of this waste from view, it’s right below the surface.

Instead of a doctor visit for a simple urine test that can cost over $500 in time, supplies, and office staff + rent, provides FDA cleared at-home diagnostics for Kidney Disease detection, Urinary Tract Infections, and more. As expands its roster of at-home tests, their revenue and valuation will quickly follow.

Offices In: Tel Aviv

Total Funding: $30MM

8. AiDoc: Deep Learning — Tailored for Radiology

Two medical imagery AI companies in the same list?! Say it isn’t so! It is, and for good reason. Zebra and AiDoc both solve a very expensive and repeatable process today: interpreting medical scans.

Instead of having Radiologists interpret every scan from scratch today, AiDoc steps in to help pre-process the images and identify abnormalities.

AiDoc then helps doctors and hospitals prioritize which scans to review first by highlighting potentially urgent cases. Win for patients, win for doctors, win for AiDoc.

Offices In: Tel Aviv

Total Funding: $30MM

9. Celsius: Loans + Interest for Crypto

While Crypto may seem so 2017/2018, Celsius has carved out a very interesting business in the space: offering loans that leverage Crypto assets as collateral and then using the interest from those loans to pay Crypto depositors interest on their site.

Since July 2018, they’ve done over $600MM in loans and claim to have not lost money on a single one.

Although we’ve definitely crested the “hype” part of the hype curve with Crypto, Celsius has the potential to thrive as Crypto moves more mainstream.

Offices In: Tel Aviv, New York

Total Funding: $50MM

10. OverOps: DevOps Dashboards and Issue Identification

DevOps tools have been exploding over the past few years in valuations, in revenue, in customers, and in usefulness to tech companies. DevOps engineers are now among the most highly recruited hires for scaling startups.

OverOps has focused their AI (read: Machine Learning) on anomaly detection and “True Root Cause” identification (read: source code where anomaly happened and variable state tracking cross-stack). They have already built strong traction with companies like Comcast, TripAdvisor, and Intuit among their customers.

Offices In: Tel Aviv, San Francisco

Total Funding: $49.5MM

Honorable Mentions

KeeWee: Audience Insights and Optimization for Written Content

Offices In: Tel Aviv, London, NYC

Total Funding: $9.1MM

Twiggle: Natural Language Search for E-Commerce

Offices In: Tel Aviv, NYC, San Francisco

Total Funding: $35MM

Cherre: Actionable Real-Time Real Estate Data

Offices In: Tel Aviv, NYC

Total Funding: $9MM

What Israeli Startups Did I Miss?

I’m sure I missed quite a few prolific, fast-growing Israeli startups. Let me know which ones on Twitter at @amitch5903!

Alex Mitchell

Written by

CPO @ICXMedia. Advisor @joinbullseye. Previously Product @UpsideTravel. Author @producthandbook @disruptbook

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