HSNW conversation with Koby TanzerDemand for Israeli security solutions remains strong -- and is growing
Homeland Security NewsWire’s executive editor Eugene K. Chow recently spoke with Koby Tanzer, a partner at Indigo Strategic Partners, an investment firm that specializes in the Israeli security and defense sector; in the interview, Tanzer discusses Indigo’s investment philosophy, how the global recession has affected defense and homeland security spending, trends in the global homeland security market, mobile device-based security solutions, and more
Homeland Security NewsWire: To start things off, can you tell us a bit more about your company. Do you primarily invest in Israeli firms, or do you also target investments in other countries?
Koby Tanzer: Indigo Strategic Partnersis an investment fund established to take advantage of the broad investment opportunities presented by the Israeli security, safety, and defense sector. Indigo is an investment group targeting primarily small to medium sized companies with products and services that detect, prevent, and defend against threats to individuals, facilities, enterprises, and infrastructure — or assist in the recovery if such threats materialize. Our focus is on Israeli and Israeli-related companies.
HSNW: Does Indigo follow the “typical” PE model – look for mature, under-performing companies, buy them, replace their management, improve their performance, then sell them – or do you follow a different investment philosophy?
KT: Given that Indigo is sector focused, we take a broader investment approach. On the earlier side, we are interested in opportunities so long as the company’s primary product or solution is post-beta testing and is generating some level of revenues from paying customers. In the case of mature companies, we are looking for undervalued opportunities where the existing shareholders are seeking a partnership with a financial investor that can help grow the company over the next three to five years and lead it to a much larger future exit opportunity. In all cases, we are seeking to partner with strong management teams and to help accelerate the companies’ development through our international network of financial, governmental, security, defense, technology, and marketing professionals.
HSNW: Justifiably or not, there is an implicit perception in the United States that many Israeli security companies – especially cybersecurity – may be sharing information they gain in their business transactions with Mossad and other Israeli security agencies. Is this a problem when you consider investing in an Israeli security company, especially one that deals in cybersecurity?
