Israel Innovation and Cloud Computing

and thank you very much also for the lecture also for sponsoring this one trust is one of the important companies talking about privacy and Trust they also CSA members and they support a lot the community so thank you for your stand as you all know Israelis famous for their innovation right we have a lot of startups here and in the last couple of years that dream for every Jewish mother became not being a doctor not being a lawyer but build your own cyber startup and then sell it for millions of dollars so I'd like to present our next guest because he made this Israeli dream came true a couple of years ago offer offer he's here here he started his company I was I was there I think in one of the first meetings they were talking about concepts and they talked about this technology as dps software-defined perimeter and this was like just starting to roll in and they had some ideas and I think two or three years later of course all these companies who simatai for 250 million and he's here to talk to us about this journey how do his tips for this and please welcome him thank you I will use this one hi how many entrepreneurs we have here entrepreneurs here okay so I'm not going to talk about technology I will share our journey it was based on SDP which called which coined by cross security alliances so four different parameter and there is other names like zero trust and beyond curve technologies today but the first basic idea was based on a CSA research and we joined it back in November 2016 and we built it as a cloud service we'll change it a bit and I will share my my wisdom as I sit as a CEO notice engineer who builds a product and if you have any any question just raise your hands so so I offer I came from to start up one of them is a de l'homme which took about which acquired by Microsoft in late 2015 and after that I joined a start-up on the cloud security area which called files which got acquired by a proof point before that it was a sissy so for many years look at it it Bank Leumi for like nine years I think and what I learned when I was a see so is that a real solution need to solve a real problem so I joined through great engineers coming from checkpoints I will show our first pitch deck when we raise our seed round so there are learn little that they both came from checkpoint and cyber units in 2200 known unit and what we try to do back then is to get rid of appliances and application gateways and firewalls and VPNs and build robust cloud service on AWS that will serve the next era of using applications hosted in ingest merely as you can see after 18 months this is our pitch deck back in mid 2018 we invest a lot in branding and understand the customer needs and I will show a beach how it works so basically what we solve is today you know that the perimeter is dead back there no one talks about it like 12 years ago and we thought that we should not trust anyone like firewalls and VPNs they are not working well with the new environments and we build we billet different as distributed our connectors based on application proxies that can deliver any any application to any kind of device agentless and it's always coming through our broker we are basing mainly native LS but we have some data centers in in Azure as well this is our time line we founded the company on January 2017 we got founded very quick like after a month actually when we when we discussed this this idea it in Tel Aviv in Tel Aviv University at start ow I don't think it's exist right now so actually we said together three founders and try to validate their dear and understand how many customer will move to innovative architecture that actually changed the way that enterprises are working and we did it for like two months we we met lots of people there are some here as well and once we got the notion that we got like 50 potential customers around the world that told us that if we will have this kind of architecture working and ready they will buy the solution so we had the deck that I showed you two slides before and we went like six or seven investors we got like for term sheets after two weeks we go which which are F which is unknown Israel investors with great great father's so so we got father really quick we didn't had like one one one one line code in our platform before that and we thought it difficulties with gaining engineers into the team we measure we succeed in building up our platform in less than six months to like kind of MVP and we got our first paying customer which was an Israeli a design partner that worked great with us really fast after like three months we got the refers declined FinTech UK company traded company that use our our platform for all of their employees and as you can see all of these milestones were planned ahead and actually actually every every week we measure if if if we are where we plan to be or not okay and we build our platform to be certified from day one which sock which which is a with cheaper with PCI because we understand that a potential clients that will want to use start up especially if all the traffic is is is is going through through this startup service he wants some credibility and I understand that you can deliver what you were what you promised and you are fully secured we chose the right partners mainly a table s and in Microsoft they helped us to gain more customers and actually actually I think that Microsoft Boris like at least five fortune 200 sky our companies as a clients and support us this fo for AWS we got certified and that helped us because we we use these online and any customer that we visit first try to understand who we are and what we are staying for and if you are like soak the compliant after one year and you're cool vendor of gather and you have five customers that means that your money good way and he he will try you out so actually our first fortune to hard customer is insurance company big one and they are still using our platform actually they increase their usage these days and anybody anybody have ever questions on that yeah it's fast yeah yeah yeah so so not everything is working like that always yeah so so we work very hard to do it it looks very very smooth but it's not that we always I think that I have like few tips that I can share with you on on what I was focusing as a CEO in building this car this company so so on the validation side you should really validate your idea before you are beginning to develop your platform okay I know startup that building technology and then they're going to the customer and you don't want it and then they are changing the technology you know to support the customer needs and that's actually sometimes happens when you are working with like a small Israeli company design partner and then you are going to the US and you're going to Fortune companies and their understanding and the way of work is totally different and that happens to lots of companies so I I think that that the validation should be with your primary market like if you are working in the US and you're selling enterprise software security you should talk with us-based companies and not walk with like like the gdpr and stuff are not I was valid yet in the US if if it's like a US company that have branches in Europe so they will invest a lot in GDP are but but if you're doing GDP I'll work in Europe don't don't validate your idea in in the US and that's what we did actually because when you're developing a cloud platform it's very different if you're working in Europe like in France they want you the dead center to be in their environments and we are basing in AWS in Ireland and and us that it today we have like an apex one but we are not deploying our platform in a that datacenter and actually we cannot invest the cost is very big in order to gain customers in every continent that have some privacy issues I think that on the validation stage issues really invest your competition because as long as you are moving this journey the competition that that you are finding that you are not aware of and that's not good actually because you don't have any battle cards and you cannot justify your platform in front of them and from customers and actually we had couple of good competition which one of them is a great one this Kahler I'm sure that's your worth so they went out with this kind of profit access just two months before we build our platform and that was very good because the market education is is enormous you know with the scanner and we are doing it better so so yeah so so it's it's actually does so when you know your competition you can actually build something that is better and different and because if you'll read it the same you will not have any any any very proposition that that you can offer to your customers and that way you will probably lose I don't believe in in building something in the garage I think that's a good validate idea which good father's should get funded there are lots of money on the of the tables on the floor you should actually actually it's it is saying because there are lots of startups are in the air right now and I think it's I can say easy to get funded but if if you'll note the steps right and valid that your idea and will approach to a big mass a massive markets with a good plans I think your kids you can get funded I don't think that you can do it without it I think you should always stay in fundraising mode which means that you should be very organized from the financial and legal aspects with the option plans and everything because because actually we we got founded after two weeks by RF and just after ten months we got follows by us CP we we raised here three million dollars and here it's more like it's eleven dollars eleven million dollars more and actually we spend only million dollars like that so we didn't need the money but with a good opportunity to get funded from top the receipt that really wants get into this market so the reason that we do it in like two weeks funding ground was because we were like very organized and the diligence was very easy don't get too high on the valuation because I know startup that raised a lot of money they lose lots of equity and you know it's funny but but when you are raising eleven million dollars on forty million dollars valuation after six months you need to be value this much and if you are not you will have racket down round and when things are working smoothly it's okay but when it's not it's it's a big risk and I know far as that actually lose their company or that investor can take advantage of of that even even if even if if there is not like a real reason to do it don't don't for this to these whole customer so so I worked very hard with customers and I think that that's what CEO needs to do so there are like design partners and customers design partner is someone that you are walking in his environment in order to understand that your technology is working your features and your platform needs to work with a real paying customer that will walk with you and be a reference to your investor to your next customers etc you know that many people have design battle startups like current employees in Israel it's not a real reference customer it's makes no impression on on any investor or customer in your prime location like if you're working is or that that's occur but if you are working in fate is that it's not it will not work get coolant and get trusted so as I mentioned before we invest a lot in certain certifications from day one actually we worked really close with gather and further in other analysts we got cool vendor after one year and that's that that makes a lot of lots of noise and actually when when Symantec approaches it was partly because of that because you're seeing like I start up that's running really fast and you want to understand why they do it and we when you get a combination like that that's that something that will make them understand that something good is cooking it's not the reason why someone will buy you but it sounds like that that help we build our reference network with the insurance industry and with the tech in industry we invest a lot in it and because then we approach we hear like references that they can talk wait and understand why they are using overnight so that helped us a lot to gain customers really quick so this sentence that I got from someone when I worked at at KPMG actually so I think that when when your ability company you you need to have a good mythology because it's all about it you can build a technology that no one will use no one will want and you will not have any surgery how how to sell it ok so everyone wants to build a big companies doing IPO but guess what sometimes it's not happened and you need to make your maximum in order to forget something for how it work so so actually we understand that we are not like a real threat but we are aiming on massive markets we are we are there are companies that stop using Cisco anyconnect which is like I think it's it's the most common VPN so we have fortune companies that stopped using Cisco and stop using checkpoint firewalls and stop using other other VPNs like juniper and Microsoft and stuff so so you understand that that you're taking a market share with innovative technology to a new era which is the cloud from the big players and you should have a good strategy to walk with them sometimes people afraid to share their deck and their idea with the big players believe it they don't know to do anything that it's innovative enough to compete with you even if if you think go to checkpoint or Symantec try to grab 10 engineers to walk on in you are there for 4 toriel's it will not work it will not work never and if they will do it they will do it in the wrong way so so when I mention this camera so this girl was our competitor on all the private access they have two major products which is the Securitate way and the application private access so when when we start talking with Symantec we know that this kind of competes with Symantec on a massive market which is a secure web gateways and we know that they will they want a new tool in order to compete with this care so when when you know how much they want you you can go actually to other potential acquirer like Cisco and in others and make them understand that a big player won't – if him kind of sorry so so so when actually I can tell you that that that we met him mantacorn or like a big client called Eli Lilly which is like fortune companies pharmaceutical so they actually told us that they are using semantic caffeine and if you look with them that can be great because they they will have at one solution to access any kind of cloud applications SAS and hosted yes and that will solve a big problem for them so they connect us with Symantec and after three months that happened so so so you should have a strategy in place and and always understand what you can do that will make the best for you your father's in vessels and employees so this is like a big word when I'm working at adderall my work with a guy called the mirror Jara Jara mati he was the CEO he was like a big executioner it's not something that sounds good but yeah but but he actually he actually built a massive infrastructure after getting out of stealth I I actually learned to do it before that there are lots to do like building your marketing automation Joe says your brand everything it needs to be out so you can gain weight and gain customers it's not easy to get like 20 30 customers after less than a year going out of cell but but if you are building your infrastructure ahead in investing dance you can get it you should use the Cooter's you should use anyone that can help you to gain the the right challenge in the right place another thing that I learned after a month when you ESPE joined us I had a board member his name is Jacques so actually I was very busy with doing lots of things like which networking events running the products in our staff and and when I start to do that everything changed because because you cannot do anything good like 50 things good making sure that every employee is happy it's important but you should delegate and trust other to do it you should so so so I I actually focus on fundraising and getting customers that's it behind that there are many things to do like getting self-assess people walk in different locations like we worked in in Boston Chicago and the west coast so there are lots of investments in each in each locations so there are plenty things to do but I think that the main thing that get us really fast into dozens of customers of paying customers and seven-figure deals was focusing on the right thing for you it's different for for engineering and products this is my $0.50 for this event I think that the most important things it's to be a leader it's respect your of course your customer it's it's basic but working with we took founders employees and investors are you know the investor believed in you and they are working with you and if you work with them you can achieve a lot and so that's the way I did it if someone need any any help I will be happy to assist thank you all for sharing this amazing journey with us sir I don't think I heard too many hear interpreter stories so we're looking for for a next startup which is amazing and this is the time for me to remind that CSA has a start-up membership it's a new membership it's designated for startups the last company from Israel the joint is the start of membership pure sec was just acquired if three weeks ago by palo alto for a lot of money so if you want to hear more details on the start of membership come over to myself for damn ear and right now you have lunch outside the door waiting for you and we see you in one hour with the continuous presentations thank you

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