The war in Gaza continues with repercussions. Among the slogans being shouted, the riots, the multiple narratives and, of course, the one devastating truth are issues that are rarely discussed explicitly in peacetime. There are more questions than answers these days.
Israel's high-tech industry, Israel's most productive sector, has enjoyed unparalleled success for years, but is facing the cost of war and everyone is wondering what its future holds. I'm thinking.
Although the military campaign is not yet over, the wheels of Israel's technology industry continue to turn. Investors may worry about their investments and companies may worry about global business, but resilience appears to be one of the startup nation's secret sauces.
Can the Gaza War undermine Israel's technological advantage? Insights from a leading investor
A major event held last week in the heart of New York City showcased 40 promising Israeli startups at various stages of development and gave investors an insight into Israeli companies and their global impact. We have proven our trustworthiness.
The event, attended by more than 150 investors, was hosted by Jerusalem Venture Partners (JVP), a 30-year-old Israeli venture capital firm. An investment powerhouse with an interesting perspective, his JVP will likely usher in the future of Startup Nation.
Erel Margalit, founder and chairman of JVP and Margalit Startup City, strongly believes that the current challenges are ones that all Israeli entrepreneurs can meet. Whether these challenges stem from the First or Second Intifada, or from any of the previous Gaza wars, they target many of Israel's major high-tech companies. ” he says.
The answer is always yes
Over the past few months, investors and business partners outside the conflict zone have questioned whether Israeli companies will be able to maintain the status quo, meet product development deadlines, and travel to and from Israel to meet with customers. I've been holding you. “The answer to all these questions is yes,” he says confidently.
“This resilience embodies more than business success, it reflects a triumph of creativity. … [+]
“We have always worked in extremely difficult environments, but the innovation and high-tech sectors have not only brought economic and business success, but also brought people together and promoted coexistence. Innovation is a way of life and what makes Israel a strong international player.”
On October 8, the Galilee Climate and Food Tech Center, home to 74 startups, was forced to relocate, posing a major challenge. Despite this, Margalit says there was a remarkable collective effort to maintain business continuity. Many companies were also faced with the challenge of having team members called into reserve, requiring concerted action to remain cohesive and productive. “The company has redoubled its efforts to meet its revenue goals and objectives. What's impressive is the global collaboration between teams to ensure product delivery and maintain a consistent vision.” This resilience reflects It represents more than just business success, he added. It reflects the triumph of creativity over destruction, of life over death.
put DNA into practice
During the Big Apple event, investors from all over the world gathered to learn about different companies, areas of focus, and wartime activities, as well as learn more about Margalit's proven navigation technology.
JVP has raised more than $1.6 billion across 10 funds and built a global network of strategic and business partners. To date, he has exited more than 40 portfolio companies and has had a long sales record in the industry, with 12 initial public offerings on NASDAQ.
A deep understanding of the industry is key to ensuring a successful investment. JVP invests strategically in thematic sectors such as cybersecurity, AI, fintech, and insurtech, gaining deep industry insights, identifying category leaders, and providing a wealth of tools to deliver superior services. I use my experience.
Margalit attended the JVP 2024 Annual General Meeting held in New York. “Investors from all over the world came together to learn a lot. … [+]
Margalit claims that while working on his PhD at Columbia University, he developed a philosophical understanding of whether startups succeed or not. “It's not among the stars,” he says. “It depends on what you do with the founders and executives and how you structure the leadership of the company. A lot of that involves working together as a team: executives, shareholders, directors. We create a vision and execute it.”
The title of his doctoral thesis is entrepreneurs in historyexplores how political leaders can change a country's trajectory by reshaping its national narrative. “Churchill, for example, reframed the story of the war against Nazism from a conflict between Britain and Germany to a battle between good and evil that would determine the future of civilization.'' Entrepreneurs similarly reframed the story of the war against the Nazis from a conflict between Britain and Germany to a battle between good and evil that would determine the future of civilization. ,” explains Margalit. This philosophical perspective has influenced the way I look at life and business. ”
Over the past decades, JVP has played a key role in forming Israel's international market leader, expanding its reach into North America, Europe and Asia, and securing substantial ownership of the company. The company has adopted an early investment approach to achieve a prominent position with low costs and will further strengthen this position through subsequent investments alongside leading third-party international funds. While most VCs hold an 8% stake in a company upon exit, JVP retains 30-40% ownership in these companies, thereby assuming the role of lead investor.
“When a company is worth billions of dollars, it makes a big difference whether venture capitalists own more than 40% of the company. This creates a very high multiple. It means we play a pivotal role in defining product-market fit and helping our company transition from a technology-centric company to a leader in its market category.”
VC's headquarters in New York serves as a hub for meetings and strategic discussions between Israel, Europe, and the US West Coast. “This is a place that represents Israel through technology and innovation.”
Margalit said the wheels are currently moving rapidly for many Israeli companies: “We are currently finalizing deals around the world, including in the UAE, Bahrain, Europe, the United States and Asia.” he said.
He added that many employees have expressed sympathy and support for the company's efforts in this crisis. “Investors and business partners recognize the role of our high-tech sector in international relations and are calling for clarity in Israel's post-conflict planning and diplomatic strategy.Despite the challenges, we will build bridges and We remain committed to asserting Israeli leadership on many fronts.”
Understandably, Margalit is heartbroken and concerned about the current developments in the region, but remains focused on the mission and sends a positive message to all global market players: “Israeli entrepreneurs We grow in adversity and come out stronger with each challenge.I assure hesitant investors: Israeli entrepreneurs thrive in adversity.''The history of resilience speaks volumes. Masu. Embrace Israel's spirit of innovation that fosters growth and success despite obstacles, and together we will build a future defined by determination, partnership, and an unwavering commitment to excellence. ”
