TG-17 (NASDAQ:OBAI), which operates under the Bond brand, said it is working to build a new market for personal-security services offered by employers and municipalities, a process that Founder and CEO Doron Kempel said requires customer education, sector-specific references and evidence of measurable results.
During an investor webinar, Kempel said Bond’s recent customer announcements should be viewed in the context of a company creating a new category rather than introducing another product into an established market. He said prospective customers for established products generally already have budgets, procurement processes and ways to assess performance. By contrast, Bond must persuade organizations that offering personal security to employees or residents is feasible and worthwhile, often requiring buyers to seek new budget approvals.
References and measurable outcomes
“A company that brings to market a new product, even more so a company that creates a new market or category, must win references in each sector,” Kempel said.
He said Bond has been building reference customers across key verticals, including retail, media and entertainment, private equity and venture capital. Kempel said some of these customers are among the three largest companies in their respective sectors, though he did not name them during the presentation.
In response to a question about customer disclosures, Kempel said security-related customers can be reluctant to publicize their relationships with Bond. He said media outlets have reported that Apple, Walmart, Verizon, Disney and Nike are customers, but noted that those were not statements made by Bond. He also said Ralph Lauren had disclosed its use of Bond for North American store employees in its financial statements and has expanded the service to Europe.
Kempel also pointed to an Ernst & Young research study that he said examined Bond customers, security agencies and academic sources over roughly four and a half months. According to Kempel, the study concluded that corporations should expect annual savings of $180 to $280 for each end user receiving Bond services.
City and real estate customer developments
Bond recently announced that the City of Jerusalem signed a contract to provide its service to all 10,000 city workers, according to Kempel. He said Jerusalem conducted a pilot involving both municipal workers and residents before choosing to begin with city employees.
Kempel said Bond pursued Jerusalem because it is a large, widely recognized city with security challenges and because management believed it could be an early adopter. He said the city arranged budget approval through its mayor after the pilot.
Jerusalem may later reconsider making Bond available to residents, Kempel said, though he stressed that he could not predict such an expansion. He said city officials were satisfied with residents’ responses during the pilot, but providing service to approximately 1 million residents would represent a substantially larger expense than the current 10,000-worker program.
The company had previously announced a separate municipal contract covering all residents of a city with approximately 270,000 people. Kempel said Bond has seen about a 60% adoption rate among residents who were informed of the service in that city.
Bond also announced contracts with an international university and a “meaningful” real estate brokerage that will offer the service to all of its agents. Kempel said the brokerage deal could establish a precedent because real estate firms generally do not regard their agents as employees and have historically been less inclined to provide security services to them.
Municipal pipeline and marketing efforts
Kempel said Bond is in early discussions with about 20 cities, primarily in France and Israel, while it is also beginning efforts in Mexico and the United States. He said some discussions have advanced to the decision-making stage, where cities are considering whether and how to structure potential agreements.
He said municipalities represent a potentially significant market because cities can serve populations larger than even the world’s largest employers. Kempel characterized the company as being in a “Crossing the Chasm” phase, referring to the process of moving beyond early adopters toward broader market adoption.
To support sales and marketing efforts, Bond plans to exhibit at a global security trade show in Atlanta scheduled for Sept. 13 through Sept. 16. Kempel said the company will have a significant booth and will co-sponsor, alongside Amazon, an award for women in security and next-generation professionals.
He said the event is intended to increase awareness, engage potential customers and generate leads that Bond hopes will develop into revenue in 2027.
About TG-17 (NASDAQ:OBAI)
TG-17, Inc, dba Bond (“Bond”) was formed under the laws of the State of Delaware on April 11, 2017. We provide preventative personal security powered by AI. Once activated, the cloud-based Bond Preventative Personal Security Platform provides users with remote protective services via phone app (using its Bond Preventative Personal Security Platform) and with 24/7 support from our Personal Security Agents, who are in Bond Command Centers and can respond rapidly. We offer 14 distinct services through our phone app (the “Bond App”) and fully automated Bond Command Centers located around the world, that allow Bond members to choose when and how Bond will keep them secure while preserving their privacy.
