Monday, March 24, 2008
Israeli Startup Panel (This Week!)
There's a panel in the Palo Alto area this week looking at Israeli startups with ties to silicon valley, organized by a local group CoolTech, this week. Israel (Tel Aviv in particular) is one of the few places that has been successful in transplanting the "American" venture capital model. Clearly, enlightened government policies had a formative influence on venture capital development in Israel, as did a business culture tolerant of risk and failure; it is also an incredibly exuberant business environment. In fact, when talking with Israeli VCs, I'm struck by how similar their outlook is to American VCs. And yet, there is undoubtedly more to the story. Israel's domestic market is small and the target for intellectual property is invariably external markets. The differences may in fact be more important than the similarities, since they open up new channels for discovering innovative business models. For that reason, Israel is an essential case study for economies around the globe that aspire to a dynamic technology marketplace.