Highcon Links with OurCrowd: High Tech Machinery Taps into $82 Billion Folding Carton Market

Packaging makes a difference, often the difference. highcon OurCrowd has invested in Highcon, dedicated to the development, manufacturing and marketing of its sophisticated, revolutionary digital creasing, cutting, and converting solution for the Direct-to-Pack Folding Carton sector, a $82 Billion folding carton market. The round is being led by a significant Chinese institutional investor that will invest up to $10 Million.

Aviv RatzmanFounded in November 2009 and headquartered in Yavne, Israel by Aviv Ratzman and Michael Zimmer, Highcon’s vision is “to transform the economics, production time and environmental impact of folding carton finishing, enabling convertors and brand owners to better meet consumer demands.”

According to Highcon, its “‘DART’  (Digital Adhesive Rule Technology) has been incorporated into the world’s first production digital cutting and creasing machine, the Highcon Euclid. The Euclid transforms cutting and creasing from an analogue to a digital workflow, dramatically streamlining the finishing process. The Euclid was launched at the DRUPA exhibition in Dusseldorf, Germany May 2012.”

Highcon Direct-To-Pack means faster turnaround, lower costs, wider applications, shorter run lengths and reduced carbon footprint. Now convertors can better serve their customers profitably and brand owners can bring more innovative packaging designs to the shelves more rapidly.

Highcon CEO Aviv Ratzman averred,  “Our aim is to deliver packaging solutions which make a real difference to the highconsuccess of convertors through innovation, productivity and value.”  Partnerships and collaborations with American Greetings, Gafs Cartong, Xeicon and Minolta have increased Highcon’s international presence.

OurCrowd has expressed exciting about its investing in Highcon; in the platform’s words, here’s why:

Patented, proven and exclusive technology: Highcon’s patented solution transforms cutting and creasing from an analogue to a digital workflow, which means faster turnaround, lower costs, wider applications, shorter run lengths and reduced carbon footprint. Highcon’s aim is to enable packaging companies to better serve their customers profitably and to bring more innovative packaging designs to the shelves more rapidly.

Strong management and team: Highcon is led by a management team and advisory board with deep industry experience. The two co-founders spent over 30 years combined at Indigo/HP, are intimately highconfamiliar with the needs of the printing industry and are well-positioned to execute the company’s disruptive vision. Highcon’s largest shareholder, and strategic advisor, is industry pioneer Benny Landa. Landa founded Indigo (acquired by HP in 2001 for $800M+), which was the first of a series of successful Israeli exits in the printing sector. Israel has established itself as a leader in the world of digital printing and Highcon is the latest company building upon this tradition.

Substantial momentum since last investment: Since OurCrowd’s initial investment in Highcon in November 2013, the company has more than doubled its revenue from 2013 to 2014. New installations include Skitza, Gafs and the world’s largest producer of highcon 1greeting cards, American Greetings. In addition, some of the company’s initial customers are now in discussions with Highcon about potential follow-on orders. The company launched the second generation Euclid II product line at Graph Expo last week. The Euclid II benefits from two years’ worth of operational experience in the field and feature improvements in the feeder, stacker, the ability to handle a wider array of substrates, new sensors and software upgrades. The Euclid II will also provide a lower entry price and be upgradable with a suite of optional add-ons.

Large addressable market: According to a forecast by Smithers Pira, the market for packaging is $312B. This market is expected to grow at an annual rate of 18% through 2018. The folding cartons segment served by Highcon’s solution makes up the second largest market segment (after corrugated packaging), representing $82B.

For more Q & A about Highcon, click here. For further financial and campaign information, registered OurCrowd investors may click here.

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