Taking stock of Israeli tech
A milestone week for Australian–Israeli business relations began with a six-strong Australian Securities Exchange (ASX) delegation visiting Israel, and ended on Israel’s Independence Day (May 2) with Mobilicom becoming the 14th Israeli company to list on the ASX.
A MILESTONE week for Australian–Israeli business relations began with a six-strong Australian Securities Exchange (ASX) delegation visiting Israel, and ended on Israel’s Independence Day (May 2) with Mobilicom becoming the 14th Israeli company to list on the ASX.
Mobilicom, which provides private wireless network solutions that require no infrastructure – is looking for greater access to the lucrative Asia–Pacific market as it develops new products for the drone and robotics industries.
Its CEO and co-founder Oren Elkayam told The AJN before ringing the famous ASX bell, that small to mid-sized Israeli tech companies like his are increasingly viewing Australia as the ideal access point to stock exchange funding.
“Israeli start-ups have great access to seed and early stage rounds of investment by local and international venture capital firms, but are missing sufficient access to growth funding,” Elkayam said.
“They don’t find the Israeli stock exchange as a good candidate for funding, and on the other hand the larger-scale approach of the Nasdaq [in the US] is more suited to larger ventures.
“Therefore listing in Australia is a great place for Mobilicom, and I believe there’s a great synergy between Israeli high-tech start-ups and the Australian market and business landscape through the ASX.”
Mobilicom’s listing is the 10th by an Israeli company in the last 12 months.
According to experts The AJN spoke to, that figure could double by the end of this year.
Israel Trade Commissioner in Sydney, Ethy Levy, said “There are 10 others in the process of listing, boosted by the recent Israeli business delegation to Australia that came in February during prime minister Benjamin Netanyahu’s visit”.
“And also by the third visit to Israel in six months by the ASX’s general manager of listings, Max Cunningham, arranged through the Trans Tasman Innovation Circle.
“Those numbers are great, but what is more important is the total market capital has reached over $1 billion.”
Levy said the number of Israeli companies opening offices in Australia has also risen, from 60 to more than 100.
Speaking to The AJN by phone last week from a balcony overlooking Jerusalem’s Old City, Cunningham said the ASX is trying to bolster technology listings – and Israel’s reputation for innovation and establishing regional and international businesses makes it an obvious choice to focus more on.
“The ASX is one of the biggest capital markets in the world and unlike many other markets, it has a single board, a high standard of corporate governance and so it suits small or early stage companies because there is less competition,” Cunningham said.
“This is appealing to Israeli firms, and the cohort of Israeli companies that have listed on the ASX to date have done reasonably well,” Cunningham said.
SHANE DESIATNIK
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