Since the dawn of the modern era, Israel’s middle name has been “The Startup Nation.” And it’s no surprise that it wears this title like a crown. Despite its small size, Israel is home to over 6,000 startup companies. Many economists and industry experts have wondered how they did it. The answer is simple, and it is found in the Israelis’ ability to survive in the most miraculous ways possible. To that end, they provide high-quality military, cybersecurity, entrepreneurship, and decryption code training to their talent. Because Israel is a very diverse country, each ethnicity and culture adds value to the workforce as a whole. As a result, immigrants and Israelis joined forces in promising startups, paving the way for them to become well-known and competitive with large corporations.
The spread of coronavirus has caused a global shift in today’s tech market, economy, and workforce. Companies, employees, and everyday life have been forced to adapt to a new world because they are fearful of the future. Many industries have collapsed, and the picture becomes even bleaker when healthcare is factored in. On the bright side, these difficult times can be advantageous for new businesses. These new startups have the potential to pave the way for previously unimagined industries to emerge from the ashes of a forever-changing world.
David Kezerashvili is one of the entrepreneurs who keep an eye on the Israeli start-up scene. He was recently interviewed by Israelnationalnews about what makes the Israeli start-up climate so appealing to foreign investors. As an investor responsible for projects such as InfinityVC, Vake Plaza, and Formula TV, David has taken advantage of the new opportunities and has continued to invest in and support the new type of startups. We followed up with David to get his thoughts on some of the Israeli startups we believe will cause shifts in 2021.
Israeli Startups that may surprise you in 2021
Without much to add, we chose some of the companies that push through the hardship of today’s circumstances, from industries that became necessary: tech, cybersecurity, media, and e-commerce. The companies in this list have the potential of becoming tomorrow’s top companies. Investors specifically look for these types of startups, thanks to their ability to adapt and survive. We asked David to give us his thoughts on these companies and this is what he had to say;
Cyber companies, especially the Israeli ones, are the best know to be serial fundraisers that already look for a new case to handle as soon as the previous one is solved. Transmit Security developed a portable authenticator in an app-free form. It uses device biometrics for user authentication. The startup generated $100 million in annual revenue, with a 50% growth rate. Among its clients, there are major banks such as Santander, Leumi, UBS, and many more.
Many people learned to play the piano with JoyTunes, which made the company extend to other products such as guitars and other instruments. During the Covid-19 lockdown, the world was forced to stay inside and find indoor activities. Many people turned to learn new things, including playing a new instrument. This lead to JoyTunes 150% increase in its revenue.
Even though it’s been on the market for over a decade, JoyTunes stays a small startup. Its strategy is focused mainly on recruiting new employees, despite being content with only 20 people. Even though the Covid19 year had significant business growth, the startup also decided not to raise new capital.
A part of JoyTune’s vision is to become the world’s most known music teaching tool, and it seems that they found the magic formula last year. Its 150% rise in profit was due to adding the guitar as part of the teaching music tool app. On top of this, JoyTunes also managed to take down language barriers and geographical distance too by finding a global audience during the Covid lockdown momentum.
One of the world’s industries affected by coronavirus was the sports industry. This is when Minute Media came in and developed a platform that allowed sports fans to create content. Today, five media brands use Minute Media technology. During the course of several years, the company inquired about four acquisitions. The most popular is The Players’ Tribune media brand. The startup has around 350 million monthly users and 4,000 content producers, creating approximately 20,000 unique experiences for its customers. According to sources, the company generated $170 million yearly revenue, elevating the tech industry as among the surviving ones, just as David Kezerashvil predicted.
Weather prediction has been a preoccupation to humankind ever since the beginning of civilization. In today’s age of global warming, the need to check forecasts is even more important to modern man. Tomorrow.io is not only just the most accurate weather prediction app, it also wants to be the first company in the forecast industry to have global satellite coverage.
Tomorrow.io is an innovative company. The company’s business plan is to build a mini weather radar, able to be installed on a small satellite. A plan set for the upcoming 2022 year, the startup wants to launch around 30-40 such satellites to cover the entire globe. Tomorrow.io will also use AI as a way to improve the predictions of the app.
As a visionary himself, David Kezerashvil has a history of pinpointing growing companies at an early stage. David Kezerashvili believes there are many thriving startups in Israeli 2021 that not only survived the pandemic but also show strong signs of becoming even more successful in the post coronavirus era.