2
Oh No…
Not THIS again…
• A perspective from the inside on how it
looks from the outside
• A new phase in Israel’s Tech evolution
Principal @ Gemini VC
VP Sales & Biz Dev @ Balink
Founder @ VentureApp
Investment Manager
@ Naiot Venture Accelerator
New Media Manager
@ Yes Satellite TV
IDF Major
Top writer on Quora,
Over the past 2 years.
Israel
IDF
Mid east Conflict
VC
Start-ups
Biz Dev
10 AM 10 PM
10 AM 10 PM
BriefingGo inIntense fightingDebriefing, BriefingAnd after 10 days…Update command, get new orders Missed out on Johnny’s B-day… You find the 2nd one and destroy it3 weeks later, you head home.And continue working on Israel’s 2nd IoT Conference.Some more intense fighting
Nablus Jenin Ramallah
Rawabi, the new Palestinian City And I thought
you’d enjoy this
8.7 miles
“From the river to
the sea” is chanted
by people called
“Peace activists”
41 miles
During July 2014,
My family was on
one side, My enemy
was on the other
Both still are
59 miles
The distance
between the Ben
Gurion Airport and
the West bank is
less than 5 miles
4.8 miles
8,500 sq miles.Roughly the size
of New Jersey
• It’s easy to paint the conflict as “Strong = Aggressor” and
“Weak = Victim” (When violence always serves anti Israeli sentiment).
• Israel is open to foreign media, even Al Jazeera, it
backfires, but such is democracy and a good thing too.
• Open debate and freedom of speech gives room for
internal criticism in Israel. Think of the last Palestinian
you heard criticizing the PA in the West Bank.
• The common opinion of Palestinians on the conflict is
not widely discussed.
• The amount of short lies, out of context claims, and
exceptions presented as rules is just too overwhelming.
• The first time the term “Palestinian Arabs appeared, was
with the British mandate in 1920 (But things change over a
century….).
• There were 650,000 Jews, and 330 Jewish settlements in
the land BEFORE 1948.
• The first time the world recognized the 2 state solution
was Nov. 1947:
• The future Israel accepted – The Palestinians Joined a
Pan-Arab annihilation war (A second attempt went down in June
1967 - Both didn’t work).
• Zionism never has and does not contradict a 2 state
solution.
• That this conflict is the biggest issue in the mid east and
origin of the unease in it.
1 state solution
Yugoslavia #2
Annexation
THIS would be
Apartheid #2
2 state solution
Not a happy
Marriage, but a
Civilized DivorceIsraeli Territories
Palestinian Territories
Simple, right?Wrong:
Jordan Valley
Connection
Land swap
Jerusalem
Unsolvable?
No.
Simply serious
issues that
require serious
people.
• A terrorist died, he was
next in line, Never reelected
(who has time for
elections…)
• Net worth $100M … in
money that isn’t his.
• Does not deny the
holocaust, just blames
Zionism for it.
• Does anything but
negotiate, fears change.
• Serial winner of elections through fear. Has nothing else to sell.
• Has very creative memory, especially about his own actions.
• PM 4 times. Just like Ben Gurion, Comparison says it all.
• Hooked on status Quo, fears change.
Simple, right?
“A leader takes people where they want to go.
A great leader takes people where they don't necessarily want to go, but ought to be.”
Rosalynn Carter
Israeli
Right Wing
Israeli Left
Wing
Israeli
Centralists
Orthodox
Jews
Israeli
Arabs
2013
Elections
43
3 Parties
(Even
split)
29
4 Parties
19
1 Party
18
2 Parties
11
3 Parties
2015
Elections
44
3 Parties
(1 with 30)
29
2 Parties
21
2 Parties
13
2 Parties
13
1 Party
Change (?) (+1) (0) (+2) (-5) (+2)
“A leader takes people where they want to go.
A great leader takes people where they don't necessarily want to go, but ought to be.”
Rosalynn Carter
Both people need change.
Change requires leadership.
Neither side has it.
Send CV to: [email protected]
Israel’s Population: 7.9 Million People
Hi-tech exports account for 45% of GDP
Number of technology companies in Israel:
5,342
Number of R&D Centers: 279
Companies listed on Nasdaq:
74 (Ranked 3rd)
23
Source: Bank of Israel, OECD Statistics
Private & Public Venture
Sector
IT Skills
Innovative Capacity
Flexibility & Adaptability
Scientific Research
24
Source: IMD World Competitiveness Survey
R&D Expenditure (Private
& Public Sectors)
Accessibility to Capital
Markets
Entrepreneurship
Quality of Academic
Research
Israeli
Success
StoriesLeading
Multinationals
in Israel
Great Israeli
Start-Ups
Israel has the highest
number of R&D centers
of global companies in
the entire world outside
of the US:
279 companies.
Growth & Buyout Funds
Vodafone
Ventures
Inimity
Angels
VC
Seed
1. Israel is an immigrant country
2. Necessity is the mother of invention
3. Education
4. Investment in Innovation
5. The IDF Technologies
6. Unique intelligence and data tech capabilities
7. The military service
8. Local market too small
9. "Chutzpa"
10. Efficiency over protocol and hierarchy
1. Chief Scientist grants for R&D companies
2. Technological Incubators
3. Tnufa fund – Pre Seed boost for IP potential
4. Binational funds and Eureka program.
5. Incentives for foreign investors.
6. Incentives for foreign companies.
30
Source: Vintage Ventures, IVC Estimation*
80’s 1992 1996
WAVE I
1999
17 Funds
$500 millionraised
39 Funds
$1.5 billion raised
2004
36 Funds
$3.6 billion raised
PIONEERS GROWTH EXPANSION CONSOLIDATION
85 Funds
$6.5 billion raised
2008
25 Funds
$3.1 billion raised
MATURITY
2015
WAVE II WAVE III WAVE IV WAVE V
What’s ahead?
Survival of the fittest.
In 2014, Israeli high-tech capital raising set an all-time record
as 688 companies attracted $3.4 billion.
The amount was up 46 percent from $2.3 billion raised by
659 companies in 2013.
$15B In Exits
$9.8B in IPO
18 Offerings
$5.2 in M&A
52 Deals 32
Since 2011, we have witnessed of a rising number of Israeli IT, VC backed companies, postponing a quick exit option, and advancing towards higher valuations and annual sales.
(The following figures are accurate as of December 2014)
21 Israeli IT companies crossed the $400M valuation threshold, compared with only 3 in 2011.
15 Israeli IT companies crossed the $100M annual sales threshold, compared with only 6 in 2011.
90 Israeli IT companies crossed the $10M annual sales threshold, compared with 50 in 2011.
7 Israeli IT companies performed an NASDAC/LSE IPO in
2014, with an average valuation of $1.75B,
compared with none in 2011. 33
Israel is making a transition from being the “Startup Nation"
(virtually thousands of startups in the country, the highest per
capita ratio) Into becoming a “ Tech Category Leader Nation.“
In other words, Israel is shifting into a phase wherein
founders and investors alike, recognize and focus on fortes,
and are aligning plans accordingly.
In terms of which industries, stand out: Advertising tech,
big data, media, cyber security, enterprise software
(Cloud!) IoT.
Particularly hot niches are: Mobile, consumer web
and business-to-business-to-consumer software.
Next Gen UI
SaaS 2.0
Ad Tech
Cyber Security & Fraud Detection
SMB & SOHO Engagement
Transportation Tech
IoT
Next Gen UI
SaaS 2.0
Ad Tech
Cyber Security & Fraud Detection
SMB & SOHO Engagement
Transportation Tech
IoT
Israeli
companies
Are well
positioned
To become the
Infrastructure
for IoT.
Fintech
Indoor LBS
Social Apps
Social Media Monitoring
Here is the challenge.
Here is the opportunity.
I could be wrong you know…
https://www.quora.com/Noam-Kaiser
This presentation on SlideShare
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