What’s old is new again: How Israel is bringing a fresh perspective to the tech sector
The Israeli technology sector is building on significant momentum globally. Earlier this month, Reuters reported that Amazon had purchased an Israeli tech firm and that Israeli high-tech companies raised a record $6.47 billion last year.
Israel’s tech sector has played a key role in doubling the nation’s share of GDP from 6 percent in 1995 to about 12 percent today. It’s also played a significant incubator role to some of the most disruptive tech brands. Wearing the proud moniker of “Startup Nation,” Israelis have the largest number of startups per capita in the world (1 for every 1,400 people) and have developed technologies acquired by Google and Intel. It’s no wonder firms are investing in innovation overseas.
We’re no exception. That’s because Israeli start-ups have a track-record for solving thorny and complex problems that impact industries and infrastructure; Next47’s sweet spot. We’re doubling-down on our commitment to this ecosystem by opening a new office in Israel, led by Moshe Zilberstein who just joined us from Norwest Venture Partners. We’re also pleased to introduce our newest portfolio company, Israel-based Bringg. Bringg is driving innovation in an industry as old as commerce itself: Logistics.
Logistics is having its time in the spotlight in 2019. Ensuring goods get from Point A to Point B in a timely, efficient manner is an omnipresent priority, as consumers and business alike have real-time delivery data at their fingertips. According to the annual State of Logistics Report, spending on logistics in the U.S. rose to $1.5 trillion in 2017, which represents 7.7 percent of U.S. gross domestic product. In terms of revenue, research indicates the global logistics market will grow from $8.1 trillion in 2015 to $15.5 trillion by 2023.
The same technology that can deliver a pizza to your home in 30 minutes can now deliver a shirt to you in the same amount of time. This is often called the “Amazon effect,” and it’s changed the way we look at logistics, particularly what’s called “last-mile delivery.” As consumers have seen with Amazon, how we shop today is a far cry from how we shopped even 10 years ago: No one expected next-day shipping from retailers, nor did they expect the visibility of knowing exactly and reliably when those goods would arrive. Today, that precision and reliability is the expected norm.
But if you’re not Amazon, how can you achieve that same level of transparency, reliability and efficiency? That’s where Bringg comes in. Bringg provides enterprises with the most efficient way of managing complex delivery operations. Some of the world’s best-known brands (including Walmart, Panera Bread and AutoZone) in more than 50 countries are already gaining clear strategic value from Bringg’s powerful SaaS platform which offers the real-time capabilities organizations need in order to achieve logistical excellence across delivery ecosystems.
We’re thrilled to invest in Bringg and help them deliver on their mission to fundamentally transform the centuries-old logistics industry. Bringg joins Claroty in our expanding list of Israeli portfolio companies that build on our commitment to entrepreneurs and innovation in 2019.