Israel's Defense Tech Boom: From Taboo to Trillion-Dollar Opportunity?

[music] [music] Hi, I'm Amy Shapiro, journalist at CEK, Hi, I'm Amy Shapiro, journalist at CEK, Hi, I'm Amy Shapiro, journalist at CEK, and we're here today at the Defense Tech and we're here today at the Defense Tech and we're here today at the Defense Tech Expo 2026 in Tel Aiv. Until not long Expo 2026 in Tel Aiv. Until not long Expo 2026 in Tel Aiv. Until not long ago, the defense sector was considered ago, the defense sector was considered ago, the defense sector was considered taboo for many investors. Today, [music] taboo for many investors. Today, [music] taboo for many investors. Today, [music] it is one of the hottest fields for it is one of the hottest fields for it is one of the hottest fields for venture capital. And standing here venture capital. And standing here venture capital. And standing here today, it is not difficult to see why. today, it is not difficult to see why. today, it is not difficult to see why. The tragic events of October 7th The tragic events of October 7th The tragic events of October 7th reminded us that national security can reminded us that national security can reminded us that national security can never [music] be taken for granted. never [music] be taken for granted. never [music] be taken for granted. Since then, Israel's defense sector has Since then, Israel's defense sector has Since then, Israel's defense sector has experienced an unprecedented boom. So, experienced an unprecedented boom. So, experienced an unprecedented boom. So, join us as we get up close with the tech join us as we get up close with the tech join us as we get up close with the tech and talent behind those methods. and talent behind those methods. and talent behind those methods. [music]

Today, one of the biggest problems in Today, one of the biggest problems in the drone detection world. So, you have the drone detection world. So, you have the drone detection world. So, you have drones that cost hundreds of dollars and drones that cost hundreds of dollars and drones that cost hundreds of dollars and they're able to destroy bases that cost they're able to destroy bases that cost they're able to destroy bases that cost $7 billion. So, we built an acoustic $7 billion. So, we built an acoustic $7 billion. So, we built an acoustic sensor. It uh uses, you know, for a sensor. It uh uses, you know, for a sensor. It uh uses, you know, for a drone, it has low signature. The only drone, it has low signature. The only drone, it has low signature. The only place where the signature is very high place where the signature is very high place where the signature is very high is its noise. is very very noisy. So we is its noise. is very very noisy. So we is its noise. is very very noisy. So we exploited exploited exploited >> the condition in Israel in the past few

>> the condition in Israel in the past few >> the condition in Israel in the past few years expedited the whole um use of years expedited the whole um use of years expedited the whole um use of technology in the battlefield. And if we technology in the battlefield. And if we technology in the battlefield. And if we look at the future, we can definitely look at the future, we can definitely look at the future, we can definitely see that technology is is one of the see that technology is is one of the see that technology is is one of the pillars in the battlefield. Um our our pillars in the battlefield. Um our our pillars in the battlefield. Um our our products are battlefield proven. We are products are battlefield proven. We are products are battlefield proven. We are um basically um what what we want to do, um basically um what what we want to do, um basically um what what we want to do, what we try to do is to u replace uh what we try to do is to u replace uh what we try to do is to u replace uh soldiers in day-to-day missions and uh soldiers in day-to-day missions and uh soldiers in day-to-day missions and uh and actually uh reduce uh reduce risk and actually uh reduce uh reduce risk and actually uh reduce uh reduce risk >> [music] >> [music] >> [music] >> Mid is a fire control system company.

>> Mid is a fire control system company. >> Mid is a fire control system company. That means that we are ensuring uh the That means that we are ensuring uh the That means that we are ensuring uh the hits compensating both the target hits compensating both the target hits compensating both the target movement and the shooter movement. movement and the shooter movement. movement and the shooter movement. Eventually we are all a part of the Eventually we are all a part of the Eventually we are all a part of the combat forces as well doing preserve I combat forces as well doing preserve I combat forces as well doing preserve I would say most of the time. So it allows would say most of the time. So it allows would say most of the time. So it allows us to not just hear from the field what us to not just hear from the field what us to not just hear from the field what they want but actually be there and they want but actually be there and they want but actually be there and learn ourselves. learn ourselves. learn ourselves. >> We have physics based simulation very

>> We have physics based simulation very >> We have physics based simulation very precise simulation. [music] precise simulation. [music] precise simulation. [music] It's like you're playing PlayStation or It's like you're playing PlayStation or It's like you're playing PlayStation or Xbox but in a very physics based world, Xbox but in a very physics based world, Xbox but in a very physics based world, very realistic world. The world that you very realistic world. The world that you very realistic world. The world that you see, we [music] call it digital twins see, we [music] call it digital twins see, we [music] call it digital twins and mapping. This is used for and mapping. This is used for and mapping. This is used for debriefing, for planning and other type debriefing, for planning and other type debriefing, for planning and other type of applications. of applications. of applications. >> Our domain is the spectrum which is

>> Our domain is the spectrum which is >> Our domain is the spectrum which is actually the virtual the non visible uh actually the virtual the non visible uh actually the virtual the non visible uh battlefield now. So we operate uh to battlefield now. So we operate uh to battlefield now. So we operate uh to offer spectrum dominance which means offer spectrum dominance which means offer spectrum dominance which means that we can either sense or jam the that we can either sense or jam the that we can either sense or jam the electromagnetic environment which we electromagnetic environment which we electromagnetic environment which we find in many application in the find in many application in the find in many application in the battlefield. 80% of our business is battlefield. 80% of our business is battlefield. 80% of our business is outside of Israel and in the last 2 outside of Israel and in the last 2 outside of Israel and in the last 2 years we've been expanding within our years we've been expanding within our years we've been expanding within our local market as well as growing into uh local market as well as growing into uh local market as well as growing into uh new markets around the world. new markets around the world. new markets around the world. So, [music] uh, here at XMEX, we

So, [music] uh, here at XMEX, we So, [music] uh, here at XMEX, we developed the first only automatic tour developed the first only automatic tour developed the first only automatic tour kit called the TAC 710. And 710 is kit called the TAC 710. And 710 is kit called the TAC 710. And 710 is actually the homage to the 17th of actually the homage to the 17th of actually the homage to the 17th of October when this was actually invented October when this was actually invented October when this was actually invented and created in our minds. So, we're and created in our minds. So, we're and created in our minds. So, we're looking at stop the bleed kits. We're looking at stop the bleed kits. We're looking at stop the bleed kits. We're looking for police, [music] law looking for police, [music] law looking for police, [music] law enforcement, military, EMS, but the enforcement, military, EMS, but the enforcement, military, EMS, but the average citizen can put this on. As you average citizen can put this on. As you average citizen can put this on. As you saw, it takes [music] exactly 2 seconds saw, it takes [music] exactly 2 seconds saw, it takes [music] exactly 2 seconds to put it on. Right after the Bondi to put it on. Right after the Bondi to put it on. Right after the Bondi Beach incident, actually, unfortunately, Beach incident, actually, unfortunately, Beach incident, actually, unfortunately, the Australian government reached out to the Australian government reached out to the Australian government reached out to us and said, "We need this for mass us and said, "We need this for mass us and said, "We need this for mass casualty events." We have a one-time use

casualty events." We have a one-time use casualty events." We have a one-time use testing kits to identify suspected testing kits to identify suspected testing kits to identify suspected substances like drugs and explosives. So substances like drugs and explosives. So substances like drugs and explosives. So these testing kits will identify 30 these testing kits will identify 30 these testing kits will identify 30 types of drugs in one test. We do have types of drugs in one test. We do have types of drugs in one test. We do have also a general screening for explosives. also a general screening for explosives. also a general screening for explosives. Same process. This is good for 21 Same process. This is good for 21 Same process. This is good for 21 different types of explosives. We have a different types of explosives. We have a different types of explosives. We have a collaboration with Dyson company, the collaboration with Dyson company, the collaboration with Dyson company, the best vacuum cleaner in the world. We best vacuum cleaner in the world. We best vacuum cleaner in the world. We need to take it out like that from the need to take it out like that from the need to take it out like that from the couch ridge and then put it here. Then couch ridge and then put it here. Then couch ridge and then put it here. Then it's ready to go.

it's ready to go. it's ready to go. [music] [music] [music] I've started the journey almost 3 years I've started the journey almost 3 years I've started the journey almost 3 years ago just when the war in Ukraine was in ago just when the war in Ukraine was in ago just when the war in Ukraine was in about four or five months and I what I about four or five months and I what I about four or five months and I what I came to realize we are entering a came to realize we are entering a came to realize we are entering a defense era and the defense era as defense era and the defense era as defense era and the defense era as opposed to other parts is very opposed to other parts is very opposed to other parts is very interesting. It's delayed meaning the interesting. It's delayed meaning the interesting. It's delayed meaning the minute the minute the war starts or a minute the minute the war starts or a minute the minute the war starts or a president says he wants a golden note it president says he wants a golden note it president says he wants a golden note it takes few years it actually shows in the takes few years it actually shows in the takes few years it actually shows in the P&L of companies so that's number one P&L of companies so that's number one P&L of companies so that's number one number two defense cycles are very long number two defense cycles are very long number two defense cycles are very long so once you start buying defense it's so once you start buying defense it's so once you start buying defense it's going to take 5 7 10 years and number going to take 5 7 10 years and number going to take 5 7 10 years and number three there is no sensitivity to price three there is no sensitivity to price three there is no sensitivity to price if we need a tank or a submarine or an if we need a tank or a submarine or an if we need a tank or a submarine or an anti drone we buy it whatever the price anti drone we buy it whatever the price anti drone we buy it whatever the price is is is >> while we're still waiting on the 2025

>> while we're still waiting on the 2025 >> while we're still waiting on the 2025 [music] numbers, they're expected to [music] numbers, they're expected to [music] numbers, they're expected to very match those of 2024 when Israeli very match those of 2024 when Israeli very match those of 2024 when Israeli arms exports reached a record 14.8 arms exports reached a record 14.8 arms exports reached a record 14.8 billion. And indeed, 2025 was another billion. And indeed, 2025 was another billion. And indeed, 2025 was another landmark year. landmark year. landmark year. [music]