With the number of Israeli startups doubling, the capital of Israel is now the “Magnet” for entrepreneurs and investors from across the world
Fremont, CA: Israeli startups have made the best use of the situation, especially in terms of their business acumen. The mandatory nature of Israeli security and geopolitical policies persuade young adults to join the army for training. A vast majority of the Israeli population opt to get their army training, even though their forte is computer science, mathematics, and other technological fields. Once these people are done with their training, they return to native places to apply their knowledge and skills in startup building process.
In addition to the military training, Israeli entrepreneurs also have a great experience working for international tech companies such as Facebook, Microsoft, PayPal, Google, and eBay. As they have broad experience working for US tech giants, their business ethics are based on US work environments. These young professionals, who are seasoned by Multi-national tech companies, apply their skills in the Israeli job markets with newer startups ideas.
As the skilled and innovative workforce enacts a vital role in the placement and value generated by the startups, more professionals are persuaded and wish to follow suit. Since this is the trend unfolding at present, international companies are urged to step into the Israeli market, and the same is encouraged by the Israeli government as well. The government not only promotes the scene but also takes additional steps, such as providing financing and resources for Israeli early-stage startups and recommendations for tie-ups and funding with foreign corporations.
The Israeli government also encourages collaboration with foreign companies by allowing tax incentives, such as tax exemptions on capital gains in the sale of shares for an Israeli company. Fuelled by these influences, the Israeli tech startups boomed in the past decade, with innumerable small and medium-sized startups with not more than 50 employees started getting attention from foreign investors. This phenomenon produced some of Israel’s standout unicorns with an ecosystem that has developed to prosper and function, playing an active role in economic growth, as the popular opinion—technology prospers with diversity. The same is unfolding in the tech scenario of Jerusalem. Diverse people from all walks of the industry have brought people and talent together to create a unique ecosystem that is conducive to the continued innovations in technologies such as AI, AR/VR, Blockchain, and even cloud computing.
The rich qualities of talent, US-based work ethics, and a coalition amongst the government, nonprofits, and academia has strengthened the Israeli startup ecosystem and have created events, innovation hubs, accelerators, and entrepreneurship programs. Technological innovation has also taken a step-up towards encouraging the two predominant fields, life sciences, and Artificial Intelligence startups to attract more players into the Israeli match with the world.
See also: Top Artificial Intelligence Companies