Conversation
Highlights

From Military Precision to Market Authentication: How Elitheon’s CEO is Tackling the $2.3 Trillion Counterfeit Problem

The moment that sparked Roei Ganzarski’s journey into authentication technology wasn’t a grand vision about solving a trillion-dollar problem – it was a watch repair. “My lovely wife Anat bought me a nice watch for our ten year anniversary,” Roei recalls. When he tried to get it serviced, the dealer’s response was surprisingly casual: “Great, thank you. Why don’t you come back in six weeks and pick it up?”

This experience, combined with his background in aerospace where he encountered similar authentication challenges, revealed a critical gap in how we verify physical items. As Roei explains, “Many times I would ask, well, what you’re telling me is that the certificate of manufacture or the FAA approval certificate or any other documentation that’s protected by the blockchain, but how do you know the blockchain belongs to this part?”

This insight led him to Elitheon, where he saw technology that could fundamentally change how we authenticate physical items. The problem it’s tackling is staggering – counterfeit and pirated goods account for $2.3 trillion in economic impact. But more concerning than the financial cost is the human impact, particularly in healthcare where, according to Roei, “10% in the first world countries, I.E. Western Europe and the United States, 10% of medicine will be either fake or gray market. In the third world countries, you’re looking at up to 30% counterfeit.”

The challenge of authentication isn’t just about sophisticated fakes – it’s about our collective willingness to trust superficial markers of authenticity. As Roei notes, “Today, as people, we are so gullible that we will believe anything a sticker tells us.” He illustrates this with a telling anecdote about an automotive company’s anti-tamper solution: “I flipped the boxes over, I opened them from the bottom, I took the brake pads out, closed the box, flipped it back over, and I said, look, I just replaced everything in your box, and your anti counterfeit anti tampering sticker is still intact.”

Instead of relying on external markers like hologram stickers or barcodes, Elitheon’s approach mirrors biometric authentication for humans. “If we don’t want to rely on a badge or an ID that could be faked or stolen, what do we rely on? Biometrics,” Roei explains. Their technology can identify unique “feature prints” of individual items using just a standard smartphone camera – no special equipment needed.

But having revolutionary technology isn’t enough – you need to focus on the right markets. Roei’s approach to market selection is driven by two key factors: “Who are the industries that one know and acknowledge that there’s a problem” and “Where are the industries that if you get it wrong, the consequence is high, either financially or operationally.”

This led Elitheon to focus on five key sectors: transportation (particularly automotive and aerospace), defense, pharmaceuticals and medical devices, precious metals, and luxury goods. Each sector was chosen not just for market size, but for the severity of consequences when authentication fails.

For tech founders, Roei’s experience offers valuable lessons in market focus and strategic patience. As he notes, “Not all revenue is good revenue. If it’s revenue that defocuses you as a company and takes you off your path for the wrong reason, it’s the wrong revenue.”

Looking ahead, Elitheon’s vision extends beyond enterprise applications to consumer empowerment. Roei envisions a future where anyone can authenticate their valuable possessions with a simple smartphone app, potentially transforming how we think about ownership, insurance, and theft prevention.

In tackling a problem as vast as global counterfeiting, Elitheon’s journey demonstrates how focusing on specific, high-impact use cases can create a path to broader market transformation. It’s a reminder that sometimes the biggest opportunities start with solving seemingly small, personal frustrations – like getting a watch serviced.