Despite the fact that the geopolitical challenges are affecting, somewhat dramatically, the Israeli economy, somehow as a country we continue to grow and drive success despite the odds. As a country we are dealing with a very challenging internal struggle which includes too many of our business leaders on the frontlines.
The world as we know it changed, for the worse, on October 7th. Given the frightening circumstances, as a parent of five kids including two who are currently serving in the IDF, I feel more secure in Israel than I do anywhere else.
There are a few phrases, or idioms, that are very commonly used in Israel and describe Israelis to a “T.”
1) Ein Breira – there is no alternative. We’re here and we’re not going anywhere. We can complain all we want, but no one will help us and complaining will only make us feel worse. So we do what we need to.
2) “We only do the impossible. The challenging stuff we leave to others.”
3) As Ben Gurion said, “In Israel, in order to be a realist, you must believe in miracles.”
Our role as business leaders is to maintain and grow our economy. To create new jobs, new opportunities, new technologies. The Israeli Start-up Nation has brought so much good to the world, and our objective is to continue to bring light and goodness to the world. Those of us not on the front lines and working to ensure that those who are fighting for us, have a job and an economy to come home to.
The dedication of Israeli’s is summed up by serial entrepreneur Yizhar Shai, who tragically lost his son on Oct 7, and rededicated to creating a better world. He famously called for a “moral response” to brutal terror: “Israeli high-tech should take on a mission that for every innocent life lost, for every fallen soldier, for every missing citizen, and for every abducted person; we should establish a startup company,” Shay told Calcalist. “This is a task that can be initiated and executed rapidly. The State of Israel can contribute, but we can manage without it as well. This isn’t merely a contribution; it’s a sound investment. Investors will play their part. The response to this destruction will be the creation of startup companies that will generate hundreds of thousands of jobs, contributing to the workforce and the overall economy.
And while it is a struggle, every day, there are a lot of positive things happening. In Q1 2024, the Israeli tech ecosystem showcased its stability by amassing $1.8 billion in funding, reflecting an 8.5% increase from Q4 2023. Certainly, dramatically down from 2021 and even 2022, but an improvement nonetheless.
Despite tremendous pressure on many large companies such as Google, Microsoft, Intel and Nvidia, we are seeing those companies double down on their Israeli forces and investments.
We just passed the two most difficult days on our calendar, which were so much harder this year. Memorial Day, as we say each year, reminds us of the price we must pay to have our State. Memorial Day is followed by Israel Independence Day- a day in which we celebrate what we’ve accomplished–and we’ve accomplished a lot in 76 years. Yet, there’s still a lot to do.
For those of you who don’t know, Israel came in 5th place last week in the Eurovision, which is largely a popularity contest. Interestingly, Israel received the MOST votes from the people of 14 countries! Out of 37 countries that vote. So despite the fact that when we watch the news we see doom and gloom, we still have many friends and much support.
And that’s my bottom line. It’s time for those of us in global business to understand that working with Israeli technologies and companies is not only good business, and excellent investments, but also the right thing to do for the future of the world.
Let’s create together!
Avi Rosenzweig
June 2024