Everyone talks about the reservists who come to the army and discover that in contrast to the conflicted Israeli reality on the eve of the war, in the IDF there is complete unity, true brotherly love and a shared commitment to each other and to the mission. I won't lie that until now I was a little jealous of these reports, but I'm happy to say that this week I felt the same feelings, exactly where – to my shame, it should be noted – I didn't think I would find them.
A nice coincidence led to my attendance at the Fusion Fund's venture capital conference. Quite a few of my family and friends are household members in this scene, yet I arrived expecting to meet a bubble. A parallel universe in which beautiful people arrive in the right clothes for the event with the right food, and hear industry leaders, some of them of course also senior figures in the anti-reform protests, babbling about the postwar economy, disconnected from the real troubles taking place outside and those that plague most Israeli citizens. What's wrong, I thought. Who doesn't need a little escapism today.
Well, I am both happy and embarrassed to announce that the only detached person was me. As someone whose quarterly summaries and market expectations do not relate to her professional life, I was able to get an impression of the topic for which we did not gather, and grasp the strong sentiment that accompanied the entire conference: heavy responsibility.
"I didn't want to come today," confessed Daniel Shinar, founder of Claltech. "I do a lot of reserve duty and the war is heavy on me. But then I remembered that when I was discharged, soldiers could have had a preferred job at a gas station. This image of someone who finished serving in the army and is now fueling gave me the strength to come. We finished our service as soldiers, and now we're fueling the economy." This beautiful idea was repeated, in different images, again and again. It was clear that "the engine of the economy" was not only a beautiful title, it was a responsibility whose weight could be felt in the room. Gigi Levy-Weiss, managing partner of a successful fund and one of the senior executives of Brothers in Arms (who arrived in the appropriate shirt), wanted to remind the attendees that not only profits must be put before their eyes but the need to inject air, that is, money, into the entire high-tech industry.
The blow to the industry can be illustrated by the numbers: in 2024, only 400 new high-tech companies will probably be established in Israel: 200 fewer than 2023, which was also not glorious, and 1,200 fewer than in the glory years of the past decade. Everyone admitted that the high numbers were exaggerated, but the low number today is low and alarming. The responsibility does not end with taking the role of the national wallet or fuel. After Dror Bin, CEO of the Israel Innovation Authority, someone remarked that the time has come for us to see a more lively movement from high-tech to the public sector, not just political or activist. The workers also have a responsibility: Hamutal Meridor of the Vintage Foundation spoke about thousands of workers who will return from the front lines to work in the coming months. "Talk to your CEOs," she asked investors to provide the right envelope for employees who have gone through difficult experiences.
In 2024, only 400 new high-tech companies will probably be established in Israel: 200 fewer than 2023, which was also not glorious, and 1,200 fewer than during the glory years of the past decade. Everyone admitted that the high numbers were exaggerated, but the low number today is low and alarming
And there is also optimism. A particularly interesting reason is the way in which Israel's place in the world is reflected in the industry. "Foreign investors are amazed," said Yifat Oron of the Blackstone Fund, "by Israel's resilience, and by the ability to keep the companies going with everything that is happening, and when so many are working in the reserves." On the home front, too, Israelis cover for each other, and high-tech companies continue to Delaware with the understanding – and, of course, responsibility – that dissatisfied customers will leave for a non-Israeli company. Those who returned from conferences abroad told of many investors who ask how it is possible, especially today, to invest in Israel and strengthen Israeli companies. New groups of Jewish investors opened, and as Meridor said, "People I didn't know were Jewish suddenly identify as Jews and talk about aliyah." Everyone nods.
I arrived expecting escapism and left with deep calm. The state of industry and the economy isn't great, but I peeked into the locomotive compartment and came back to tell you: There is someone to rely on. And that's a great deal.
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