Industry 4.0 Week: These Israeli Startups Revolutionize Manufacturing By Cutting Operational Inefficiency

Can Israel lead the way in Industry 4.0? After pioneering some of the coolest Internet of Things technologies, Israeli companies are taking IoT to the next level in digital manufacturing. Investors and manufacturers are already taking note.

Over the past four years, the number of Israeli Industry 4.0 startups has grown by 60% to 230, according to a recent Start-Up Nation Central report. Moreover, Israel is now placed third in the world (after the US and China) in terms of venture capital investments in the field; there are more than 50 multinational corporations with a presence in Israel that choose to develop IIoT solutions locally.

Dubbed “The Fourth Industrial Revolution,” or IIoT (Industrial Internet of Things), Industry 4.0 is making manufacturing much more connected and a lot smarter, by using cutting-edge technologies that enhance factories with wireless connectivity and sensors, as well as systems that can visualize the entire production line, and make decisions on their own. For example, IIoT can be used to prevent the overstocking or understocking of inventory, or it can store and manage designs for 3D printers so they can be produced on-demand wherever they are needed. Industry 4.0 technologies can also predict problems along the assembly line, which can then be quickly solved without (costly) disruption to production. 

Pushing production capabilities to new heights

In theory, almost all business operations can become more efficient. With advancements such as machine learning, deep analytics, and artificial intelligence, there is no shortage of advanced equipment and technical solutions that can transform manufacturing and push production capabilities to new heights.

We are moving towards a future where we rely less on manpower and more on digitization and automation. When this occurs, efficiency becomes more data-oriented, and actionable insights allow better throughput and higher uptime, which are directly linked to increased efficiency and higher revenues. Therefore, it is important for manufacturers to identify barriers to reaching their business goals, whether it’s production inefficiency, process inefficiency, or even energy inefficiency. 

These Israeli Industry 4.0 startups* work to reduce operational inefficiencies:

Did you know that only 8% of the 64 million machines worldwide are network connected? 3DSignals helps manufacturers increase machine productivity by digitizing machinery to become part of the “factory of the future.” Using a range of non-invasive and highly accurate sensors, the 3DSignals solution generates actionable insights within hours, by providing visibility into the production floor. The dashboard allows for visualization of the production line, so that manufacturers can significantly reduce operating costs, predict electro-mechanical failure, and ultimately increase their operational efficiency.

Founded by Amit Ashkenazi and Ofer Affias in 2015, 3DSignals has so far raised $26.6 million from Grove Ventures, State of Mind Ventures, and others. 

3D printers are an essential part of digital transformation, as they allow for mass customization and accuracy for important machine parts, they reduce lead time by removing the middleman, and help manufacturers avoid costly spending on limited quantities of parts. Castor is helping manufacturers unlock the full potential of 3D printing, with its 3D printing software that automatically scans a company’s parts catalog to identify what parts can be manufactured using a 3D printer. This decision-support software ultimately allows manufacturers to decide if and when they should use 3D printing to save time and money.

Founded by Elad Schiller and Omer Blaier in 2017, Castor has so far raised $2.4 million from TAU Ventures, the Chartered Group, and others.

For manufacturers to truly stay ahead of the curve, they need to understand that analyzing past performance is not enough anymore. Matics’ smart manufacturing insights understand this; the company’s plug-and-play operational intelligence solution provides a real-time window into the manufacturing environment for instant visibility over all operations. By connecting to the manufacturing system across the entire production floor, Matics provides comprehensive insights to allow for more effective prioritization of resources, digital documentation and knowledge capturing, and smart alerts on critical issues and performance discrepancies.

Founded by Amir Aloni in 1999, Matics has so far raised $5 from Firstime Venture Capital

Process inefficiencies can lead to financial losses. Seebo’s AI-driven solution allows manufacturers to predict and prevent losses in production yield and quality, by understanding when and why they happened in the past, but also how to prevent and avoid them in the future. Seebo aggregates data from the production line, including automated quality-inspection data, and applies machine learning to offer a holistic view of the entire production process. This aggregation allows manufacturers to maximize their production profitability, prevent product issues from recurring, predict process disturbances and excessive waste, and ultimately to significantly improve quality and throughput.

Founded by Liran and Lior Akavia in 2012, Seebo has so far raised $16.5 million from Viola Ventures, TPY Capital and others.

Visual Factories
Many manufacturers are often able to answer the questions ‘What went wrong?’ and ‘Where did it go wrong?’ but very rarely, they are able to ask ‘Why?’ Visual Factories connects to the cloud and can visualize areas of the factory which were previously unseen, using sensors that are quick and easy to assemble and attach to machines. In this way, machine operators, floor managers, and top managers can easily assess the activities of each machine to receive accurate information on each machine, understand cycle time, and optimize production. 

Founded by Matti Tiano in 2014, Tel Aviv-based Visual Factories has raised $2 million from Digital Horizon.


Industry 4.0 companies are bringing about real change within organizations, as large enterprises and private companies alike adopt their solutions in the pursuit of greater efficiency, uptime, and streamlined operations. 

To learn more about these revolutionary Industry 4.0 startups and others, attend Industry 4.0 Week: Digitizing the Value Chain. Register here!

*Are you an Industry 4.0 entrepreneur? We want to hear about your startup! Email us.

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