Nine Israeli companies were listed among 100 tech challengers that have grown into “powerful forces in technology and other industries” in 2020. These companies are driving the next generation of innovation and growth in emerging markets, according to a new report by US management consulting firm Boston Consulting Group (BCG).
Founded in 1963, BCG is one of the world’s three largest strategy consulting firms by revenue. The company has an office in Tel Aviv, as well as locations throughout the world, and issued its first such report in 2006, calling the companies on the list “global challengers.”
The 100 firms featured on this year’s list of tech challengers represent 14 countries—40 from China, 17 from South Asia, nine from Israel, eight from Southeast Asia, eight from South Korea, six from Central and South America, six from Eastern Europe and Central Asia, three from Africa, two from Turkey, and one from the United Arab Emirates.
The average valuation is USD 6.3 billion, putting most of the companies “well beyond unicorn status,” according to the report. Companies based in China and Southeast Asia have the highest valuations.
The companies are active in multiple sectors, spanning B2C (business-to-consumer) and B2B (business-to-business) environments. More than half of the tech challengers have already expanded beyond their home market, and 40% are active in developed markets. Most have weathered the COVID-19 crisis well, according to the report.
This year’s list focuses on companies that are “reinventing their industries and charting their own paths to scale and success,” according to Nikolaus Lang, BCG managing director and senior partner as well as the report’s co-author. “They are also gaining the attention of major industry incumbents—in the tech industry itself and in other industries—which must determine how best to deal with the rise of these new potential adversaries and allies,” he added.
According to the report, tech categories have done well overall, showing increases in both users and usage. Sectors such as edtech, gaming, and videostreaming have seen accelerated growth, capitalizing on changes in consumer habits.
The nine Israeli companies on the list operate in tech sectors that have seen acceleration despite the global pandemic. The companies on the list run the gamut, from sectors that include cybersecurity, ad tech, online gaming, AI tech, payments processing, and website creation.
The companies are:
Monday.com — a Tel Aviv-based visual project management company that has created a fully customizable project management tool. Customers include Carlsberg, WeWork, and the Discovery Channel. Monday.com raised USD 150 million in funding last year at a USD 1.9 billion valuation and was recently named among 12 Israeli-founded companies in the Forbes Cloud 100 list.
CyberArk Software — a Petah Tikva-based enterprise security company that gets ahead of cyber threats and prevents attack escalation by offering privileged access management.
IronSource — a Tel Aviv-based ad tech firm that builds monetization, engagement, analytics, and discovery tools for app developers, device manufacturers, mobile carriers, and advertisers. The company is reportedly planning an IPO at a USD 6 billion valuation.
Landa Digital Printing — an Israeli-founded company that has developed a digital technology called Nanography for the commercial packaging and publishing markets.
OrCam — a Jerusalem-based company established by the founders of Israel’s Mobileye, providing AI-based assistive technology for the visually impaired. The company recently signed soccer star Leo Messi to be a global ambassador.
Payoneer — a Petah Tikva-based digital payments firm that enables businesses to send and receive payments electronically across 200 countries and territories.
Playtika — an Israeli social games developer that creates immersive free-to-play social and mobile games. The company recently announced that it was filing an initial public offering.
SolarEdge Technologies — a Herzliya-based company that creates smart energy solutions. It invented an inverter solution for harvesting and managing power in a solar photovoltaic system.
Wix — a popular platform offering cloud-based web development software and services. It is used by millions of businesses, organizations, professionals, and individuals to build websites. It currently serves over 180 million registered users worldwide and employs some 4,000 people across the globe. Wix recently launched its own venture capital arm, Wix Capital, to invest in tech innovators focused on “the future of the web” and the evolving digital landscape.
This article first appeared in NoCamels, which covers innovations from Israel for a global audience.
