Look who is reinvesting in Israel, and why
Superficially, it would seem a bad week internationally for Israel’s economy. Look again, and you will find many of the ‘big boys’ are pledging their confidence in the commercial set up of the Holy Land, and repeatedly so.
Yes, private equity investment did slacken off in the previous quarter of 2015, but this was after a bumper period when over US$1.6 billion was signed over. And the EU has shown its resolve to single out Israeli products made in the West Bank, demanding special labeling – although personally I think that any improved packaging design could potentially lift sales.
These subjects have made the headlines. Once you look beyond the noise, there are some immensely positive elements.
- Intel Capital has just added two more Israeli companies to its portfolio. Allowing for the latest news, SCKipio and Parallel Machines, Intel capital has sunk close to US$300 million into the local economy in recent years.
- Ashton Kutcher has shown his admiration for Jewish and Israeli items for a long time. His VC, Sound Ventures, now boasts Moovit as part of its Israeli package. The added funding will allow the company to take its transit app in to the lucrative Chinese and Indian markets.
- Facebook is no stranger to Israel. It recently made clear its intentions to create an internet service for the poorer regions of Africa, using Israeli tech. It has since merged that this will be facilitated by recruiting a further 100 employees for its development teams in the Tel Aviv area.
- Even some of the top touring bands are returning to the country. Simply Red is expected back in June 2016. The everlasting Jethro Tull are booked for February. Foreigner, Enrique Iglesias, and so the list goes on.
And if you ask why these international commercial and cultural icons are so interested in working with Israel, the answer is not difficult to find. In the words of Elizabeth MacBride, a regular contributor to Forbes:
For its tiny size, 8 million, Israel has an astonishingly lively startup scene: it has more startups per capital than any other country in the world, and Tel Aviv was ranked fifth among the top tech ecosystems worldwide in a recent report by the Compass Group.
Add into this commercial ‘wow’ Israel’s ability to allow and encourage members of diverse religions to practice freely, women to run banks, gays to organize parades, Israel is clearly open for business…for everyone.
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