Demo Day Makes Startups Happen

The term “startup nation” is already strongly embedded in the minds of anyone talking about the Israeli high-tech ecosystem. While some of the newborn companies established in this climate achieve greatness, others disappear quickly.

In that case, how could a startup strengthen its survivability chances in one of the world’s busiest hubs of technology? One way is by getting a major boost from a leading enterprise.

Although some may consider Elbit Systems to be a niche corporation primarily devoted to defense and military solutions, collaborating with a company of its size, boasting thousands of engineers and specialists across various technological fields, can be dramatically beneficial for an early-stage startup.

Accordingly, the Open Innovation team at the company’s global headquarters quickly recognized the potential for such mutually beneficial collaborations. The result was the “Demo Day” initiative.

Harnessing Enterprise Expertise

Uri, Director of Open Innovation at Elbit Systems (as part of Elbit’s Headquarter CTO office innovation team) for the past five years, has been a driving force behind this program. With a rich background in the startup industry (having founded two startups himself), Uri has made it his mission to bridge the gap between the agile world of high-tech and the specialized needs of the defense industry.

“By promoting startups within the company, we can not only support efforts to maintain our competitive edge but also help accelerate the integration of new technologies into our operations,” Uri says. “We carefully select the companies in which to invest, often prioritizing those that align closer with our strategic needs.”

One might ask what’s in it for the new startups? “Well, where else could you utilize the knowledge and expertise of a vast pool of over 9,000 engineers and tech experts?” Uri explains. Through his Demo Day initiative, he provides a solid platform for selected startups to showcase their innovations to a wide audience of engineers and managers within Elbit Systems.

Held several times a year, Demo Day attracts around 100-150 participants, mainly engineers who play a key role in integrating these new technologies into Elbit Systems’ existing systems. Typically, 5-6 startups are invited to this meeting to present their pitches, each lasting about 20 minutes.

“The last webinar was held on July 3rd, and it hosted 5 different companies,” he says. “Now, we are waiting patiently for the seeds we’ve planted to grow, and for the interest from the different departments to awaken in any of the products presented.”

Uri notes the importance of these events, stating that startups that participate usually receive follow-up inquiries, with meaningful interactions often occurring months afterward, as specific technological needs arise.

Real-Life Success

Several startups have already benefited from these collaborations. For example, an Israeli sports-tech company that developed a sensor for soccer players’ shoes, caught Elbit Systems’ attention for its potential to military applications.

“We are now exploring ways to integrate this technology into soldier equipment,” Uri states. “Wearable technology like that can help make several different solutions come to life.”

Another example is an American startup that developed a digital component for uncooled thermal sensors, currently undergoing examination for potential collaboration with Elbit.

“I can also tell you about an Israeli company that created a flexible, wearable electrode initially intended for medical applications,” Uri continues. “We’ve initiated a program to adapt this technology for special use cases of hands-free computer operation, resulting in a system that reads eye movements to control computers.” he adds.

Elbit’s contribution to startups extends beyond acquiring new technologies; it also significantly aids in their growth and development. A notable success story is HAILO, a company that developed an AI processing chip for edge devices.

Elbit Systems was one of the first companies to integrate HAILO’s technology providing valuable feedback and real-world testing. This collaboration helped HAILO refine its product.

Open Innovation Welcomed

“We are always on the lookout for new startups and innovative technologies,” Uri underscores. “The company’s motivation is to accelerate the adoption of these startups through open innovation processes.”

By integrating external innovations into their products, Elbit ensures they remain at the forefront of the defense industry while helping both young and experienced entrepreneurs bring their products to market with maximum impact.

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