It is somewhat symbolic that Israeli advanced gunsights developer and producer Smart Shooter (TASE: SMSH) held its IPO under fire, during the war against Iran. The incessant air-raid sirens did not dampen the festive atmosphere at the company, which earlier this month completed its flotation on the Tel Aviv Stock Exchange (TASE) at a NIS 900 million valuation.
This milestone is largely testament to CEO Michal Mor, who, together with her partner Avshalom Erlich, founded Smart Shooter almost 15 years ago on Kibbutz Yagur.
"In the meantime, we haven't rung the bell yet, so we haven't gotten to know the capital market to the fullest. But we are waiting to experience it," Mor tells "Globes." "You can't schedule everything in life. It's the culmination of a process that took months. In the end, it turned out a bit weird, but we're happy that we're on our way, and what's important is what we'll do from now on."
Smart Shooter enters the TASE armed with fire control systems (FCS) for operational use in battle. The company’s flagship product is a smart sight, mounted on light weapons (rifles and machine guns), designed to significantly improve the chances of hitting ground and air targets. All is accomplished through a proprietary technology, SMASH, which uses AI-based image processing capabilities to focus the weapon on its target and ensure that the bullet is released the moment a hit can be made with high certainty.
"From the moment a user turns on the system," Mor explains, "it begins to analyze the situation, and immediately begins directing the shooter towards the target. As soon as the target is identified, it locks in and suggests releasing the shot. What’s left for the shooter to do is focus on the target and pull the trigger, because this is not an autonomous system. The soldiers used to call it Fruit Ninja [after the video game], because you have to ‘swipe’ over the target. Once it's locked in, the system calculates a graph. When the ballistic computation converges on an effectively guaranteed hit, it will enable trajectory, and the bullet can be launched."
Baptism by fire during the war after October 7
The system gained recognition during the war when it was used to great effect against attack drones. The company was already prepared for this type of threat. "A few years ago, we were approached by the IDF to deal with the incendiary balloons coming over from Gaza. It required us to make significant changes, because suddenly the background was sky; there were different and very challenging angles, and the threat did not behave in a way we knew. That was the first time we updated the algorithm, enabling it to hit targets of this type, so we were prepared for drones."
What was it like to see that significant use was being made of the product you had developed?
"At the beginning of the campaign, the Ministry of Defense asked us to help analyze some of the difficult events. I saw video that was recorded using our system, young fighters who had SMASH on October 7 and did crazy things with it. I saw how it helped a wounded soldier stand solo against a terrorist squad with a range of a few dozen meters. That's our goal at the end of the day. We tried very hard to support the fighters and improve what was needed, on the go.
"After the war, two reservists came to us on two occasions. They knocked on our door, wanted to meet me, to tell me they’d encountered unimaginable situations, and that they’d been given something they hadn’t known about before. Reservists go for long periods of time without updated weapons or training, and it made the difference for them."
In 2023-2024, Smart Shooter's revenue from Israeli customers accounted for more than half its orders, mainly due to demand for its products following the outbreak of the war. In the first nine months of 2025, however, most revenue (40%) came from Europe, from countries like the UK and Germany. Israel accounted for 36%, North America 20%, plus other countries, chiefly those of the Abraham Accords.
$35 million in orders
Mor (51) founded Smart Shooter in 2011 with CTO Avshalom Erlich, whom she met 25 years ago, when they worked on the same team in the missile division at Rafael Advanced Defense Systems. "We came from missiles and very precise electro-optical systems. Our idea was to bring the precision from our world, which served mainly the air force, to the ground forces and the soldiers in the field." At that time, Mor’s husband was a reservist in an infantry unit, serving in Operation Cast Lead, so she also had a personal interest.
"In those years, we saw the reality in a series of ground operations, such as the Second Lebanon War and Cast Lead. These were called operations, but soldiers were going in armed with simple iron sights, and that bothered us. We wanted to bridge the gap: Israel can send a missile through a window in Iran, dozens of kilometers away, and hit with ultimate precision, but can't do it with infantry at a hundred-meter range."
From the very first however, Mor admits, they understood this challenge was different from the ones faced at Rafael. "We thought it would be a great idea, but we saw the technology wasn't the same and this world was entirely different. A missile operator knows exactly what their mission and targets are. But nothing can prepare you for what you might meet in the field.
"We had to make a lot more adjustments in terms of weight, price and robustness. At the end of the day, when a soldier is assigned a weapon, the first thing they do is bang it up. It doesn't come wrapped, protected, and stored in optimal conditions, the way things were at Rafael. But we saw the reality, analyzed and solved it. Since then, the system has only gotten more sophisticated and has also gone in all sorts of other directions."
In addition to use with light weapons, the company has in recent years developed similar systems that can be remotely operated, as well as versions mounted on vehicles and robotic platforms. These are used both to protect sensitive facilities and borders, and to support operational missions.
"Unlike other remote-controlled systems that weigh hundreds of kilograms, our systems weigh less than 20 kilos, which makes it possible to mount them on jeeps and light vehicles, or on small robotic platforms and even robotic dogs. It's a twist we made and was fully battle tested in the last war. It allows anyone sitting in a jeep or a war room to identify and neutralize threats, using a tablet. Before, they had to do it by looking out of the tank window."
The company estimates that 2025 revenue will be about $36.5 million, up some 50%, from 2024, and EBITDA of $6.5-7.5 million, compared with about $1.5 million in 2024. As of early February 2026, its order backlog was $35.2 million. Most revenue still comes from small arms systems sales (90%).
An MA psychology
Mor (51) was born in Haifa and grew up in Kiryat Motzkin. Her father was an accountant and her mother was a nurse. In the army, she served as a psychotechnical diagnostician and interviewer, and later as an instructor. She then earned a bachelor's degree in psychology at the University of Haifa and a master's degree in cognitive psychology at the Technion Israel Institute of Technology.
"At the Technion, I got close to the world of technology and was exposed to a lot of people in that area, and they’re the ones who brought me to Rafael. But even when I was studying psychology, I thought the most fascinating fields were security and space, because a person is put into an extreme situation, and you must help them, and see and understand what they can do."
Working in the security and defense sector is sometimes challenging, as this environment is almost completely dominated by men, most of whom have long military resumes. "I didn't do basic training or reserve duty with most of these people, so my connections with them are different. I guess when you get to know more people in advance, maybe it's easier for you to open doors, but in the end, you can't argue with our performance."
Did you face any challenges because of this?
"I had to prove that I could bring real value, but I think today we’re in a very different place. I also try to surround myself with people who can speak openly about these issues - people who help me understand the challenges and communicate the message more effectively. "
However, in her personal case, Mor believes that coming from the outside was actually a strong point in her favor. "I think I entered this thing with a lot less baggage, because it was unfamiliar, and I didn’t know how things ‘have to be’ done. So, I ask questions, and that helps break market paradigms.
"In addition, it’s very important for me to listen carefully to the people I am meant to serve with these solutions, especially when they raise reservations or concerns. I believe that approach may be a bit more feminine. In general, I try to build a truly diverse team. I’m not looking for people who are just like me but surround myself with people who can examine a problem from different perspectives."
"We didn't want to be swallowed up"
Like Mor, Smart Shooter's path to the IPO was not like other defense companies. The company's first investors were businesspeople from abroad, who didn’t necessarily meet the sector’s typical investor profile.
The first was Canadian businessman Mayer Gniwisch, a Chabad Hassid, who made his fortune in the diamond industry. "At first, we were looking for an investor who would bring in several million dollars. But 14 years ago, when we started, there were no startups in the defense sector, and it wasn't so easy to find funds. So, I started to turn to private investors, and that's how I got to Mayer, who dealt in real estate. But for him, this was Zionism."
Through Gniwisch, Mor reached another investor, Jewish businessman Alejandro Weinstein who in 2015 sold his family pharmaceutical company, CFR, for $2.9 billion. "I respected the money they gave me greatly, because it's a great responsibility. That's how I ended up building these connections, which kept us going for a long time and helped us grow."
They were joined in 2019 by insurance companies Phoenix Finance and Hachshara Insurance, and Altshuler Shaham Investment House, which invested in Smart Shooter at a $100 million valuation. "We were at a crossroads - do we continue with private investors? I was already at a point where I wanted to break out of the Israeli market. So, I made the strategic decision to go with our institutional investors."
Why not get an investment from a defense firm that would give you the backing to grow?
"We chose not to go with one defense company or another. We were too young and I was afraid that it would prevent us from evolving, because we would just be swallowed up by a big entity. That's why we approached institutional investors in the third round, who have been with us ever since."
The decision paid off in retrospect, with a windfall for all investors with the IPO, which was held at a company valuation of NIS 900 million (after money), led by Naschitz Brandes Amir, investment banking firm Rosario Capital and Phoenix Underwriting. Founders Mor and Erlich sold a stake in their shares for about NIS 18 million each. The two remain with 7.3% in shares apiece, or NIS 83.5 million each at their current value. This, after the company's shares have jumped by about 36% since the IPO to about a NIS 1.1 billion market cap.
Early investors Gniwisch and Weinstein each sold about NIS 10 million in shares. Gniwisch remains with shares (14.5%) worth NIS 178 million, and Weinstein with shares (6.8%) worth NIS 78 million. The company's two directors, Maj. Gen. (res.) Nitsan Alon, who during the Swords of Iron war headed the Hostages and Missing Persons Command, and Dr. Avraham Mazor, a former senior manager at Rafael Advanced Defense Systems, and a Smart Shooter co-founder sold shares (1%) for some NIS 2 million each.
The Israeli institutional investors chose not to sell their shares. The largest shareholder is Phoenix Finance, which holds some 17% (NIS 198 million). Next are Hachshara with about 5% and Altshuler Shaham with some 4%.
"The wars contributed to demand"
As far as Mor is concerned, the decision to take the company public stemmed from the desire to open additional growth channels, mainly overseas. "For me, this is a very natural stage in development. I realized that I needed a significant amount of money to establish myself outside of Israel. We have been conducting financial investments for 14 years and we wanted to open areas abroad, both new markets and business development, establishing maintenance and assembly centers for our main customers. Until now, we managed with more limited resources, so we were very, very focused. Now, I'll be able to open up the areas we're involved in a little more and even consider synergies with other technologies and companies."
How did you realize you were at the point where you had to go public?
"The private investors took me to a certain point and were with me until that moment. Now, I feel ready for the next stage, turning to the capital market, because our technology exists and our customers are established. We have customers in 25 countries, all of which have the most advanced militaries in the world, so I understand that I am on solid ground."
And the rise in defense stock prices in recent years didn’t factor into your decision?
"The company has moved ahead regardless of what’s been happening around us. But it's clear that the wars have contributed to the company, because there's a very big demand for the technology. However, I didn't do it because of that. I have a plan I’m following, and I hope the capital market will go with me and feel the same way."
The human factor stays essential
Indeed, it is very difficult to ignore one of the basic elements of the defense sector: it thrives mainly in times of war. "Unfortunately, since there will probably never be peace in the neighborhood we live in, I would like to protect our forces as much as I can and minimize harm to non-combatants in these difficult environments."
Looking ahead to the battlefield in a few years, what decisions will remain in the hands of soldiers, and what will be entrusted to algorithms?
"If you are in the middle of a battle and under fire, it’s extremely difficult to analyze the terrain and determine who the real threat is and target only that individual. I see the battlefield evolving toward systems that rely more heavily on algorithms in situations where it is hard for a soldier to process everything in real time. At the same time, I believe that human judgment will remain essential, even if the fighters are sitting in a control room, assessing a complex situation on a screen."
Looking ahead, what would you consider a success?
"Our aspiration is to bring the company to a state where it is the standard of surgical precision. We plan operate gradually over two or three years, to work well in the US and serve local customers there. If we look at other defense and security companies that did this process, it took time, but they did it well. As they say at our company, 'The road to good intentions is paved with hell.'"
Published by Globes, Israel business news - en.globes.co.il - on March 15, 2026.
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