Israel is the flagship technology hub for many sectors: cyber-security, fintech, software, and other leading industries. All these sectors have huge market sizes and amazing investments opportunities, no one can say the opposite, and investors know it very well. But what if we ask you what is a sector that is currently under the radar that holds many upsides? We’ll go first:
As the most active investment banking firm in Israel, we are constantly working with leading mature companies in mainstream industries, but have recently started exploring under-the-radar market opportunities, to enlarge our vision and discover new horizons.
One of these tier-2 sectors in which we believe the most, is Logistic-tech. Often disliked by institutional investors, or at least not prioritized. People don’t really realize how much logistics affects our daily life, but let’s take a moment to think how every time we purchase something online or place an order, logistics comes into the picture.
We expect flawless and fast shipping to our homes, at any time. We tend not to think of how many players are involved in this process, and how much technology and innovation is needed for receiving the package in a day, or less.
Most important, we do not realize how much Israel is on the front line in terms of technologies that help the supply chain process, and that few unicorns created in our country come from this ecosystem, to mention a couple: Fabric and Bringg – two great companies that are shaping the future.
The supply chain and logistic industry is currently an $18 billion opportunity, expected to grow to over $46 billion in 2025 according to analysts. The revenue multiples that we are used to seeing for Israeli companies go higher than 20x: not numbers to underestimate.
Cukierman & Co. has had the chance to work with a few of the leading companies that are shaping the future of smart logistics, and we truly believe in the potential of some of the Israeli players. Whether it’s in the last-mile delivery, digital processing, or smart monitoring, we know this industry will reserve us many other unicorns.
