At the prestigious Davos gathering, an Israeli agency delivered a resounding message to the global business community – Israel’s thriving start-ups are open for investment, undeterred by recent geopolitical challenges.
Dror Bin, CEO of the Israel Innovation Authority, emphasized in an interview with Reuters that the tech sector in the country “continues to deliver” despite the Israel-Hamas conflict.
Bin highlighted the importance of reassuring large multinationals and investors that Israel’s innovative landscape remains resilient.
Amidst the turmoil of the Israel-Hamas war, where over 300,000 Israelis were drafted into reserve military service since the Oct. 7 attacks, labor shortages affected the tech sector.
However, with changes in the war dynamics, there is an optimistic outlook for easing these shortages, bringing relief to the Israeli tech industry.
Bin revealed that the Israel Innovation Authority requires financial matching from the private sector to grant funds to Israeli start-ups engaged in research and development.
Successful start-ups are obligated to repay the grant’s value to the agency, ensuring a sustainable ecosystem.
Reflecting on the evolving investment landscape, Bin stated, “It was relatively easy for them to raise money,” referring to start-ups in the past.
The agency’s proactive stance aims to prevent potential investors from adopting a wait-and-see approach in the face of global uncertainties.
While Bin remained discreet about specific investments the agency is facilitating, he disclosed that some participants at Davos viewed investment in Israel as both a financial opportunity and a form of “philanthropic activity.”
He noted, “They want to invest. They want to support Israel.” In the corridors of Davos, where global leaders and influencers converge, the Israeli message stands clear – the nation’s innovation spirit remains unyielding, and its start-ups are ready to chart new territories with the backing of global investors.