The Israel Startup scene is justly dubbed the “Startup Nation” by a book startup nation which describes how the whole country, from its foundation in the 1940s to its wars with neighbors, and the development of a high tech economy, is a marvel of entrepreneurial mindset.
In a semi-arid country with disputed borders, the only early asset of Israel are its people, a vibrant, diverse and cosmopolitan crowd sharing three traits making them great entrepreneurs: Takhles (sense of purpose), Rosh Gadol (tendency to challenge authority) and Chutzpah (shameless audacity).
As a result, Israel has the highest venture capital per capita with $425,000 per 1,000 people, and its best startups have raised $3.4bn for 2014 alone.
The Israel startup scene is now rated #1 outside the Silicon Valley, and as many as 300 MNCs have setup a R&D center there, including Apple’s only outside the US.
In terms of speciality, Israel is now famous for its expertise in Cybersecurity, but also in mobile with success stories such as Appixia or Waze.
ISRAEL
| GDP (in billions USD): | 281 |
| GDP per capita (in USD): | 33,600 |
| Population: | 8,200,000 |
| Population in 2050 (est.): | 13,300,000 |
| Internet Penetration: | 73.4% % |
| Mobile Penetration: | 65.5% % |
| Banking Penetration: | % |
| Credit Card Penetration: | % |
PROS
- Strong research & development capability
- High level of venture capital available
- Small local market + huge diaspora = strong capability to export tech
- Entrepreneurial mindset fueled among other by strong army training
CONS
- Not so good at turning technology into commercial products (quick and dirty mindset)
- Geopolitical context never easy and sometimes unsafe, in particular for foreigners
TOP PEOPLE TO KNOW IN ISRAEL
Yossi Dan
Cofounder, Chief Innovation Officer
Challengy
Yossi Dan is an innovation expert, connecting people to knowledge through fun, technology and real relationships. He is living in Israel where he has worked for Adobe and has been running the Founder’s Institute Accelerator.
Jeremie Kletzkine
VP Business Development
Startup Nation Central
Jeremie Kletzkine develops Startup Nation Central: a database of 5000 Israeli startups updated every year
Roni Zehavi
CEO
CyberSpark Industry Initiative
Roni Zehavi is the CEO of Cyberspark business park in Beersheva, the top cybersecurity cluster of Israel.
Angel Porgador
Professor, VP R&D
Ben-Gurion University of the Negev
Angel Porgador is Deputy Vice-President & Dean for Research & Development at Ben-Gurion University of the Negev, where specialties include Desert Studies (energy on sands, irrigation), but also biotech and cybersecurity.
Steve Elbaz
Business Development & Marketing Manager
Aster Capital
Steve runs the VC arm of Schneider Electric, Solvay and Alstom in Israel. His expertise runs from startup scouting to investment and corporate acceleration.
Jeremie Berrebi
CEO
Magical Capital
Jeremie Berrebi is a renown French-Israeli entrepreneur, having run Kima Ventures, an early stage venture capital fund, and now heading Magical Capital, a late-stage VC.