Bildnachweis: InnoSource Ventures.
In the first week after 7 October 2023, key players in the Israeli ecosystem launched the ‘No matter what, Israeli Tech delivers’ campaign to address the challenges faced by start-ups during the country’s struggle for survival and the liberation of the hostages. In recent years, the Israeli start-up scene has established itself as a global driver of innovation and technology. Even in the face of political instability, economic volatility and global crises, the industry’s remarkable resilience and adaptability is evident.
The government plays a major role in a variety of grants, tax breaks and funding programmes in the start-up phase. The Office of the Chief Scientist and the Israel Innovation Authority are crucial in this regard, providing around USD 500 million in 2024.
Signs of recovery in the high-tech sector
The Israeli high-tech sector is already showing signs of recovery. In the first quarter of 2024, investments totalled USD 4 billion. This trend demonstrates the agility of start-ups, which have adapted their business models to changes in the market. Israel recorded 20 announced M&A transactions with a total value of around USD 4.35 billion. The venture capital scene is the cornerstone of start-up success. Resilience is the superpower that encompasses financial, operational and adaptive durability. One example of this is Intel’s USD 32 billion investment in new projects in November, which underlines the international confidence in the innovative economic landscape. Major international companies have supplied significant support during this challenging time. Delegations from the US and Europe have been actively working with Israeli companies to promote collaborations that not only provide financial support, but also expertise and new market opportunities for them. This global solidarity emphasises the strategic importance and respect that Israel has gained in the technology sector, and it contrasts the boycotts covered in many media.
Healthtech and cyber sectors
In 2024, investment in Israeli healthtech will already reach 1.2 billion USD. Digital health and medtech are making remarkable progress in product development. Israeli start-ups are world leaders when it comes to cyber security. Companies such as Check Point and CyberArk, as well as new players, continue to set the standards in developing robust solutions relevant to both national security and commercial applications.
Excellence in academia and research
Academic and research institutions, such as the Technion, Weizmann Institute and Hebrew University, are of critical importance. The adaptability of Israel’s infrastructure and the ability of its technology sector to innovate under pressure were highlighted during these visits.
Looking to the future
The events of 7 October have left a profound impression on every Israeli, as well as on the majority of Jews worldwide. The combination of social commitment, significant investment and a culture of innovation and resilience provides a solid foundation for further growth. Its ability to thrive in challenging times and continue to grow speaks volumes about the strength and dynamism of the Israeli start-up scene.
About the author:
Adina Krausz is a Founding Partner at InnoSource Ventures, a separate and independent innovation division of the multi-family office Toledo Capital, where she is a board member. She is a bridge builder between the Israeli start-up scene and the DACH region and was in Israel on 7 October 2023.
