Quantum Hub
Deal Flow Report
September - October 2023
Dear Partners,
We are happy to share the September - October 2023 Deal Flow report.
You will find 4 sections in the report - Ecosystem news, Spotlights, and Quantum news with the full Deal Flow list.
As always, we would appreciate any feedback and questions about the focus areas and reviewed companies.
Ecosystem News gives a glimpse of interesting events/ announcements/ investments information related to the Israeli tech ecosystem.
Our Spotlight section highlights that provides more information on companies we found most interesting in the past month.
Quantum Hub News shares interesting news related to Quantum activities.
Finally, we provide the full Deal Flow of the month, including relevant companies from our focal sectors.
Ecosystem News
Amidst Crisis, Israeli Tech Shines as Potential Economic Lifeline
In a recent article published on CTECH, the challenges facing the Israeli economy during times of war, and the emergence of the Israeli tech industry as a resilient and economically promising stronghold are explored. This summary highlights key insights from the article.
The Israeli economy faces a challenging period amidst war and geopolitical uncertainty. However, the Israeli tech industry emerged as a promising stronghold, demonstrating resilience and potential for economic revival. The war's impact on the economy, compounded by global investor hesitation and prior governmental policy changes, has raised concerns about the nation's stability.
Despite these challenges, the high-tech sector remains robust. Notable transactions, signify this resilience. Major tech players like Mobileye and Check Point continue to grow despite disruptions, displaying the industry's strength even amidst adversity.
Several factors bolster the tech sector’s resilience and potential for economic recovery:
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International Market Focus: Israeli tech companies predominantly target international markets, minimizing the impact of local economic stagnation on their sales. The global outreach allows operations to continue, leveraging remote work and outsourcing to sustain productivity during uncertain times.
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Remote Work Model: Most tech companies operate without physical factories, utilizing a hybrid work model. This flexibility shields them from damage due to conflict or proximity to conflict zones.
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Military Reserves Impact: Although employee call-ups affect operations, they concurrently reduce costs, particularly for startups, as the state covers these employees' salaries.
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Currency Advantage: The strong dollar enhances the performance of tech companies, reducing costs and making their products more competitive globally.
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Political Stability: The absence of proposed judicial reforms has instilled optimism in the tech industry, fostering a conducive environment for potential growth.
If you would like to read the full article >>>
Government Support in the Tech Sector
Israel Innovation Authority extends NIS 400 million lifeline to startups amid war
The Israel Innovation Authority is providing financial aid to startups affected by the war in Israel. They're allocating NIS 400 million to support startups facing cash flow problems due to investment delays, cancellations, and significant project disruptions caused by the ongoing war.
The Authority will offer these funds through a fast-track grant program within their R&D fund. The initiative aims to complement support from local and international investors, providing a critical boost to startups facing temporary challenges due to the war's impact.
Exits Within Days of War
Palo Alto Networks buys Dig Security and Talon Cyber Security for approximately one billion dollars.
Palo Alto Networks has remained undeterred by the war in Israel, as it recently finalized significant deals with Israeli companies. Confirming its acquisition of Dig Security and Talon for an estimated total of $1 billion, the move was anticipated since September. Although financial terms haven't been publicly disclosed, insiders suggest that the acquisitions amount to around $400 million for Dig Security and approximately $625 million for Talon Cyber Security. This strategic move emphasizes Palo Alto Networks' commitment to enhancing their cloud security offerings, integrating Dig Security's focus on cloud asset identification and protection into their Prisma business. The acquisitions not only reinforce Palo Alto's position in the cybersecurity landscape but also mark a substantial development for Israel's tech industry.
Spotlight of the Month
Israel’s technology startups are playing a crucial role in responding to the war in Israel, contributing to the war effort on multiple fronts, both in the military and civilian sectors.
In this monthly section, we've chosen to highlight two Israeli startups that have adapted their technologies to support the war efforts.
Creative AI Solution
D-ID's generative AI technology elevates learning and development, sales, and marketing video content. The company's platform enables creators to generate photorealistic digital presenters from text, dramatically reducing the cost and hassle of video production at scale.
Customers include leading e-learning platforms, Fortune 500 companies, marketing agencies, production companies, social media platforms, and content creators of all sorts.
Company ID
Founded: 2017
Funding: Round B
Industries: Other
Product: Released
The effort within the framework of the Oct 2023 war:
D-ID, which regularly creates AI-based video products, invites advertising agencies, content providers, creative individuals, influencers, educators, and citizens to utilize its platform to generate free instructive videos. To receive access to the product, you must first register on the company's website and complete the appropriate form.
Social Threat Intelligence
Cyabra is a social threat intelligence company that uncovers threats, provides actionable insights and real-time alerts, and safeguards companies, products, and people. The company’s technology exposes malicious actors, disinformation, and bot networks.
Cyabra breaks down the billions of conversations taking place online and across social media, understands narratives, and reveals disinformation campaigns.
Company ID
Founded: 2018
Funding: Round A
Industries: Other
Product: Released
Website
The effort within the framework of the Oct 2023 war:
When the war started, Cyabra immediately turned to using the Cyabra technology for the purpose of understanding disinformation and the influence operation campaigns being conducted on social media by Hamas. The company, now using its expertise for national security, has identified a bot network of over 40,000 fake profiles spreading pro-Hamas propaganda and fake news.
Quantum Hub News
Quantum Hub Enrichment Academy - Amos Yadlin Analyzes Israel's Security Challenges.
This month, as part of the Quantum Hub Enrichment Academy, we hosted a lecture by IDF Reserve Major General Amos Yadlin, who previously served as the head of the Institute for National Security Studies (INSS). In his earlier career, he was a pilot in the Air Force, and in his final military role, he served as the head of the Intelligence Division.
During the session, Amos shared his perspective on Israel's security challenges in the aftermath of the October 7th attack. He discussed what is expected of Israel as a nation in future campaigns and how we can confront the challenges that will persist even after the conclusion of the war. Furthermore, we explored potential solutions aimed at ensuring the security of the country's residents within its borders.
Quantum SPARK #7 Update
In the screening phase of our Quantum SPARK #7 Runway Program, we've carefully selected 36 promising startups from diverse fields such as Automotive & Mobility, Industry 4.0, Energy & Sustainability, Logistics, and more. These startups showcase significant potential for business collaboration with at least one of our partners.
The selected startups have been forwarded to you, our esteemed partner, for your assessment and feedback.
Startups that receive the highest ratings will earn an invitation to our screening committee scheduled for November 22nd - 23rd.
In this report, we are delighted to share the complete list of the selected 36 startups >>>
