Start-up nation Israel

from Wikipedia, the free encyclopedia

Start-up Nation Israel describes a start-up boom in the high-tech sector since the mid-1990s, whichhelpedthe State of Israel to become a start-up nation . The creation of an appropriate economic environment by the Israeli government contributed to this. The success of the venture capital industry in Israel was built through “yozma” (Hebrew for “initiative”), a government initiative from 1993 that offered attractive tax incentives to foreign venture capital investors in Israel and promised to double any investment with government funds.

No other nation produces so many start-ups, business angels , incubators and investors in terms of population . With a share of over 0.3 percent of the gross domestic product , venture capital investments in Israel have by far the greatest economic importance of all developed countries - ahead of the USA with just under 0.2 percent. Europe lags behind the United States or Israel when it comes to the number of successful startups. This development was described in the book Start-up Nation: The Story of Israel's Economic Miracle ( English Start-up Nation: Die Geschichte des Wirtschaftswunder Israels ), which was translated into German.

history

In July 2015, the Federal Ministry for Economic Affairs and Energy started a pilot project for the internationalization of EXIST with " EXIST - Start-up Germany ". This enables foreign company founders or start-up teams to set up a business in Germany. The initiative was started with the partner country Israel in 2015, because the start-up rate in Germany is only 1.06% (as of 2018). In June 2018, the Friedrich Naumann Foundation summed up the need to catch up with the sentence: "Germany must become what Israel has long been: a start-up nation."

Israel invested around 16 billion US dollars in research and development (R&D) in 2018 and has one of the highest budgets in the world at 4.3 percent of gross domestic product (GDP). More than 320 multinational companies have settled in Israel (as of 2019) and operate innovation centers in the country, with the foreign companies opening their own innovation centers in Israel as well as buying up Israeli companies and expanding them into development centers.

In a report by the World Intellectual Property Organization (WIPO) published on July 24, 2019 , Israel was ranked 10th on the Global Innovation Index. 80 factors were included in the evaluation, including market regulation, spending on education and research, and private investments.

In December 2019, TechAviv, an association of Israeli company founders around the world, announced that of the 500 companies represented worldwide, 13 Israeli companies have received exceptional status. Their goodwill is estimated to be at least $ 1 billion. Such companies are called unicorns because they are so rare.

Funding programs

The Israeli government has three different programs to support start-ups:

  • the TNUFA program ( Hebrew תנופה Momentum, momentum ) for young entrepreneurs who provide evidence of the technological feasibility and commercial feasibility of their idea, with a maximum grant of 58,000 US dollars,
  • the incubator incentive program for start-up founders with a grant of up to a maximum of 800 million US dollars with 15 percent equity required. The loan only has to be repaid if it is successful. This also makes risky projects financially possible. If the young company fails, the state bears the costs; if it is successful, the profits remain with private investors. The state in turn refinances itself if it is successful and collects three percent royalties from profitable start-ups.
  • the Renewable Energy Technology Center for development projects in the renewable energies and energy efficiency segment with a funding budget of up to US $ 730,000 per project. It includes the areas of solar energy , wind energy , geothermal energy , alternative fuels , energy efficiency , smart grid (intelligent power grid) and energy storage technology ,

Banks

The Israeli banks have also developed innovations for financing start-ups. Newcomers who contact a bank usually have no knowledge of finance or banking. Usually they are engineers or even "dreamers". If you run into a banker who doesn't understand your business model, nothing will come of the financing. That is why new service models with bankers who also have the appropriate technical know-how have been launched. With their help, loans are granted to companies that initially lose money and traditionally would not be considered creditworthy. Opportunities have also been created to reduce the cost of lending to start-ups, for example through agreements with the European Investment Fund , which specializes in venture capital financing ( private equity ) and guarantees for small and medium-sized enterprises in order to cover part of the credit risk.

Non-profit organizations

Start-Up Nation Central is one of the non-profit organizations . It connects business, government and non-governmental executives from around the world to Israeli innovation and provides Israeli innovators with access to potential and previously inaccessible markets. It is currently focused on the Digital Health, AgriFoodtech and Industry 4.0 sectors, attracting investors and building and promoting tech communities to improve collaboration, knowledge sharing and skills expansion.

reasons

The reasons why Israel rose to become a leading location for the digital industry in just a few years are:

  • The army: All start-ups were founded by people who had previously served in the Israeli army, mostly in the elite unit 8200 for telecommunications and electronic reconnaissance. The Israeli armed forces have invested a lot of money and manpower in digital armament since the 1990s because cyberspace has become the largest battleground. In the Israeli army, too, soldiers quickly become commanders of small units who then have to make decisions that can make the difference between life and death. The military is also an opportunity to build an enormous network. Often times, startups are created by people who have served in the same unit.
  • Education: As a country poor in raw materials and surrounded by hostile neighboring states, Israel has invested heavily in the education sector since it was founded. According to a report by the Organization for Economic Cooperation and Development (OECD), spending on education in 2015 based on gross domestic product was 6.5 percent, Germany stood at 5.4 percent, and the average for the OECD countries was 5.2 percent.
  • Immigration: Immigration from Eastern Europe since the end of the Cold War from the states of the former Soviet Union has changed Israel significantly. More than a million people immigrated to Israel - a population increase of a good 15 percent. These often had a high level of education, tens of thousands of doctors and engineers helped transform Israel into a world-leading technology location.
  • The mentality: The physicist and Nobel Prize winner Dan Shechtman expressed the Israeli mentality as follows: We Israelis are a fearless people. That is why we are successful in science and that is why so many companies are being founded in this country. The fear of failure, the fear of being a shame for oneself and the family, does not exist with us. If you screw it up in Israel, be a little smarter and start all over again.

Focus

From the start, one focus was placed on cyber security, in which it is the world market leader with 19 percent of global investment. Another focus is the technologies related to autonomous driving . Further areas are medical technology , life sciences and information technology .

Quantum technology has been required as a further focus since 2017 , particularly at the Ben Gurion University of the Negev in Beersheba .

statistics

  • In 2015, donors in Israel invested $ 4.4 billion, or $ 553 per capita in venture capital. In comparison, this is $ 229 in the USA, $ 91 in Switzerland, $ 83 in Sweden, $ 73 in Great Britain, $ 36 in China, and $ 28 in France. In Germany it is 36 dollars, which makes it only 2.9 billion. In Israel there is one start-up company for every 1600 inhabitants.
  • In 2018, donors invested $ 6.47 billion in Israeli startups, up 17% over the previous year.

Billions of dollars in venture capital invested in Israel:

3.0
3.8
4.8
5.1
5.5
6.47
2013 2014 2015 2016 2017 2018






Source: 2013-2018:

Start-ups (selection)

Worldwide, Israeli scientists have contributed to progress in various industries, which has resulted in numerous start-ups. According to IVC Research , 8,300 start-ups (as of July 2019) have now been founded. The sale of innovative products abroad has so far reached 152 billion US dollars.

  • The first ICQ - Software was established in November 1996 by the Israeli startup -Unternehmen Mirabilis published. ICQ is the first Internet-wide instant messaging service . It was acquired by AOL in 1998 for $ 287 million.
  • In 2000, the first USB memory stick developed by the Israeli company M-Systems came onto the market. The company was acquired by SanDisk in 2006 for $ 1.5 billion.
  • In 2003 the Intel Pentium M was launched . The Pentium M was developed in Intel's research and development laboratory (Israel Development Center, IDC) in Haifa , Israel , which thanks to its great success gained a lot of reputation within the company. The code names for the individual models ( Banias and Dothan ) refer to biblical places ( Banias is a city in the Golan Heights and one of the sources of the Jordan , Dothan is a biblical city near today's Nablus ).
  • Also in 2003, the Centrino ( Centrino Mobile Technology ), also developed in Israel, comes onto the market. Centrino is a brand that includes all notebook and mobile Internet device platforms based on hardware from Intel . She describes combinations of processor , motherboard - chipset and WLAN .
  • The company Atlantium was founded in 2003 and is the world leader in UV technology for wastewater treatment.
  • At the Intel Developer Forum in spring 2005, the Intel Pentium D microprocessor developed by Intel's research and development department in Israel was presented to the public for the first time
  • In 2006 the first version of the Waze app , a GPS- assisted navigation system for smartphones , was published by the Israeli start-up Waze Mobile .
  • Also in 2006, HP Mercury Interactive acquired software for application management, application delivery, change and configuration management, service-oriented architecture, change request, quality assurance and IT governance for $ 4.5 billion.
  • In 2006 the Intel Sandy Bridge microarchitecture developed by the Intel Israel Development Center in Haifa will be presented for the first time . The first models with the newly developed micro-architecture were presented in January 2011.
  • The Intel Core microarchitecture , also developed by the Intel Israel Development Center, was officially presented on March 7, 2006 at the Intel Developer Forum . The first processors in which they were used were given the name Intel Core 2 .
  • In 2013, Google acquired Waze for $ 1.1 billion ; smartphone navigation with GPS sensors on smartphones was combined with crowdsourcing .
  • Also in 2013, IBM took over Trusteer , whose development prevents malware , phishing attacks and Internet fraud and manufactures cloud security products.
  • In 2014, Japanese e-commerce giant Rakuten acquired Viber , a free chat service for smartphones and desktop computers, for $ 900 million . The program enables IP telephony and instant messaging.
  • In March 2015, Israel became the first nation to introduce an emergency information and news app to protect civilians from rocket attacks and natural disasters.
  • In 2016, Sony bought chip maker Altair for $ 212 million, Oracle bought cloud computing specialist Ravello for $ 500 million, and Cisco bought chip design startup Laeba for $ 320 million.
  • On March 13, 2017, the US company took over Intel Mobileye for 15.3 billion US dollars. Mobileye is the leading provider of software for driver assistance systems. This was the largest takeover in Israel's high-tech industry to date.
  • In November 2017, Continental AG took over the cybersecurity start-up Argus Cyber ​​Security as part of the Continental subsidiary Elektrobit for 400 million dollars . With the takeover, Continental wants to strengthen its development of technologies for self-driving cars.
  • In 2017, Apple acquired Realface , a start-up specializing in facial recognition in Israel, which had only been founded in 2014 for “several million US dollars” . Among other things, Apple has taken over the 3D sensor experts PrimeSense , known from the Xbox Kinect sensor, the storage specialist Anobit and the camera start-up LinX and spent up to 400 million dollars on them.
  • In February 2018, the Israeli company ReWalk Robotics developed the exoskeleton . Exoskeleton enables paralyzed people to walk.
  • Playtika is a leading social and mobile game developer and was acquired by a Chinese group of investors for $ 4.4 billion.
  • In August 2019, the American company Amazon bought the Israeli start-up "E8 Storage". The company develops software-based flash memory installations.
  • On September 10, 2019, the world's largest restaurant chain McDonald’s announced that it would buy the start-up Apprente , which was founded in Israel . The aim is to have voice computers processed in the future for orders in the McDrive. Apprente has the necessary technology for this.
  • On October 7, 2019, the Israeli start-up Aleph Farms announced that it had succeeded for the first time in breeding meat in a laboratory under space conditions. It wants to prove that artificial meat can be produced anytime, anywhere and under all imaginable conditions , said managing director Didier Toubia. The company grows bovine cells in muscle tissue and uses them to produce steaks using a 3D printer . Artificial meat is climate-friendly and avoids animal suffering.
  • Other heavyweight startups include: Fiverr, IronSource, Wix, Taboola, Outbrain, AppsFlyer, SimilarWeb, WalkMe, Payoneer, Storedot, Datorama, Via, Lemonade, Cybereason, Vayyar, Airobotics, and Monday.com.
  • 180 start-up companies alone - along with 250 other companies in Israel - deal with the issues of irrigation, water treatment, seawater desalination and water management. These include the companies Nefatim (with 150 million systems sold in 110 countries) and Lishtot (measuring water quality in global databases). The export revenues for these technologies total two billion euros.
  • Intel buys Israeli AI chip maker Habana Labs for $ 2 billion in 2019 .
  • In May 2019, the start-up company Yofix introduced a yogurt made only from oats , lentils , sunflower seeds , sesame seeds and coconut . Because it does not contain any dairy products , this is suitable for people who are vegan or who are lactose intolerant .
  • In November 2019, the first artificial meniscus implant "NUsurface" was used in a person with permanent knee problems after a meniscus tear. The two implantations took place last week at the “Medical Center Jitzchak-Shamir” in Be'er Jakov and at the “Medical Center Ramat Aviv” in Tel Aviv.
  • In 2020, medical device pioneer Lumenis will be acquired by Baring Private Equity Asia for around US $ 1.2 billion.
  • In January 2020, the US fund Insight Partners acquired the Israeli company Armis, which has developed a platform for risk assessment for companies, for $ 1.1 billion. This price is the highest ever paid for an Israeli cybersecurity start-up.
  • In May 2020, Intel will buy the Moovit mobility app for $ 900 million. The company is to be integrated into Mobileye . Moovit calculates routes for users using public transport, including transport services and e-scooters, and is to be integrated into robo-taxis. The app from Israel is available for 3100 cities and has 800 million users.

The “ Incubator Incentive Program ” is to be developed further in the new Gav Yam Negev Advanced Technologies Park , a technology park . There it was supposed to help the well-educated newcomers from Russia , who were allowed to emigrate to Israel in large numbers under Gorbachev , to set up their own companies.

Future development

With the aim of networking the startup ecosystems of Germany and Israel , the Federal Ministry for Economic Affairs and Energy (BMWi) is funding a German-Israeli Startup Exchange Program (GISEP). GISEP promotes the internationalization of German startups, promotes the German startup ecosystem as an expansion target in Israel and promotes networking between the established economy in Germany and startups from Israel.

Israel is on the way from a start-up nation to a scale-up nation . Israel produces between 1,100 and 1,380 startups annually. While a start-up nation is focused on building innovative start-ups that can be acquired quickly, a scale-up nation is focused on building large, successful multinationals headquartered in Israel and doing global operations with thousands of employees and substantial income resulting therefrom.

From December 2019, the Charité , the Berlin Institute of Health and the Israeli innovation authority will cooperate in the fields of medical technology and digital health . The aim is to promote Israeli start-up companies in these areas. Funding is provided by the Israel Innovation Authority .

Umbrella organization

Israel Advanced Technology Industries logo

The umbrella organization for the support of start-ups is the non-profit organization Israel Advanced Technology Industries (IATI), which has 49 incubators (as of 2019), facilities to support technology-oriented, as innovative as possible start-ups and start-ups or start-up companies geared to growth. In addition, there are 490 so-called accelerators , which are aimed at start-ups that are at the very beginning and often only have one business idea. A start-up is usually supported and co-financed over a period of one to two quarters. The IATI organization is also committed to training and integrating populations underrepresented in the technology world, such as women, Ethiopian Israelis , Arab Israelis and ultra-Orthodox Jews , in order to promote greater diversity in the industry.

Silicon wadi

The Silicon Wadi ( Hebrew סיליקוק ואדי) is an area with a high concentration of high- tech companies in the coastal plain of Israel, with a high concentration around Tel Aviv and other smaller clusters around other major cities. The term derives from the metonymic designation of the high-tech center Silicon Valley ( German  silicon - valley ) in the State of California from. "Wadi" (ואדי) is the Arabic word for valley ( Arabic تل), which is also used in colloquial Hebrew.

Innovation centers for start-ups in Israel

  • Azorim high-tech park in Petach Tikwa

  • Startup Village High-Tech park in Jokne'am

  • Matam High-Tech Park in Haifa

  • Jerusalem Technology Park

  • Microsoft building in Herzliya

  • Intel building in Petach Tikwa

  • IBM building in Petach Tikva

  • Gav Yam Negev Advanced Technology Park (2014)

Sponsorship

The Israeli cycling team Israel Cycling Academy took over the WorldTour license from the Katusha Alpecin team and named itself Start-Up Nation Central , a non-profit organization that supports Israeli start-ups, in Israel Start-Up Nation because of a new name sponsor around. It will take part in the Tour de France in 2020 . The 30 international drivers also include the Germans André Greipel , Rick Zabel and Nils Politt . Start-Up Nation Central has now supported over 7,000 start-ups in Israel.

literature

Web links

Individual evidence

  1. ↑ History of Yozma , Yozma Group (English). Retrieved July 17, 2019.
  2. ↑ Investing in Innovations , German Business Exchange. Retrieved July 7, 2019.
  3. ↑ Business start-ups - More innovative startups through a cultural change for entrepreneurship? , IW policy paper 2/2016, Institut der Deutschen Wirtschaft, p. 26. Retrieved on July 17, 2019.
  4. ^ Dan Senor , Saul Singer , Start-up Nation: The Story of Israel's Economic Miracle , Twelve, 2011, ISBN 1-4555-0239-1
  5. ↑ Excerpts from the German translation of the book Start-up Nation Israel - What we can learn from the world's most innovative country , Carl Hanser, 2012, ISBN 3-446-42921-2 .
  6. ↑ News about the BMWi programs to promote innovation and technology in medium- sized businesses : An overview , Bundestag printed paper 18/8600, May 30, 2018. Accessed on July 17, 2019.
  7. ↑ share of the founders of the labor force (founder quota) in Germany from 2000 to 2018 , statista, June 13, 2019. Retrieved on July 17 of 2019.
  8. ↑ Where is the start-up nation Germany? , Friedrich Naumann Foundation, June 14, 2018. Accessed July 17, 2019.
  9. ↑ Economic, Environmental and Social Statistics - Expenditure on R&D , OECD Factbook 2015-2016, DOI: https://dx.doi.org/10.1787/factbook-2015-64-en . Retrieved July 17, 2019.
  10. ↑ Israel is one of the ten most innovative countries. In: Israelnetz .de. July 25, 2019, accessed August 10, 2019 .
  11. ↑ TechAviv.Retrieved January 4, 2020.
  12. ↑ Unicorns ahead , Jüdische Allgemeine, January 3, 2020. Accessed January 4, 2020.
  13. ↑ When it comes to start-ups, little Israel is a great power , Germany Trade & Invest (GTAI). Retrieved July 7, 2019.
  14. ^ Renewable Energy (Cleantech) Technology Center , Israel Innovation Authority. Retrieved July 7, 2019.
  15. ↑ Why Israel is now the scale-up nation of the world , Growth Business, Bonhill Group, England, March 28, 2017. Retrieved July 16, 2019.
  16. ^ Start-Up Nation Central . Retrieved December 22, 2019 ..
  17. ↑ How Israel became a high-tech superpower. Der Tagesspiegel, April 6, 2016, accessed on March 14, 2020 .
  18. ↑ Oliver Voß: Start-up: How Israel became the founder country. Wirtschaftswoche, November 15, 2016, accessed on March 22, 2020 .
  19. ↑ To the top with chutzpah. In: Israelnetz .de. July 17, 2019, accessed September 17, 2019 .
  20. ↑ Why startups from Israel are conquering a global future market. July 7, 2017, accessed April 3, 2020 .
  21. ↑ Oliver Voß: Start-up: How Israel became the founder country. Wirtschaftswoche, November 15, 2016, accessed on March 22, 2020 .
  22. ↑ Innovation miracle Israel - How the desert creates high-tech. In: deutsche-startups.de. July 19, 2019, accessed on April 12, 2020 (German).
  23. ↑ Unicorns in Israel - Success through unconventional thinking In: Handelsblatt.de , accessed on April 12, 2020.
  24. ^ The Next Web: The 10 Israeli Exits That Tell The Story of The Startup Nation , Ministry of Economy and Industry, Israel. Retrieved July 7, 2019.
  25. ↑ Start-ups , IVC Research. Retrieved July 7, 2019.
  26. ↑ Andreas Stiller: Gam ve Gam - Intel's future comes from Israel, c't 3-2006, p. 94ff
  27. ↑ Atlantium . Retrieved December 10, 2019.
  28. ↑ Missile attacks: Israel introduces new warning system . March 31, 2015 ( welt.de [accessed January 4, 2020]).
  29. ^ Lessons from the start-up nation , Roland Berger. Retrieved July 8, 2019.
  30. ↑ Argus Cyber ​​Security: Continental takes over IT security company from Israel. Handelsblatt, November 3, 2017, accessed on April 4, 2020 .
  31. ↑ RealFace: Apple grabs start-up for face recognition , Heise, February 20, 2017. Accessed November 4, 2019.
  32. ^ The Next Web: The 10 Israeli Exits That Tell The Story of The Startup Nation , Ministry of Economy and Industry, Israel. Retrieved July 7, 2019.
  33. ↑ Amazon buys Israeli storage technology companyA. In: Israelnetz .de. August 1, 2019, accessed August 10, 2019 .
  34. ↑ McDonald's buys Israeli speech recognition start-up. In: Israelnetz .de. September 11, 2019, accessed September 15, 2019 .
  35. ↑ Israeli Tech's Identity Crisis: Startup Nation or Scale Up Nation? , Forbes, May 14, 2018. Retrieved November 5, 2019.
  36. ↑ Nefatim
  37. ↑ Lishtot
  38. ↑ Intel buys Israeli AI chip maker Habana Labs for $ 2 billion in 2019, Heise, December 17, 2019. Accessed December 25, 2019.
  39. ↑ Yofix founder Ronen Lavee: How a founder from Israel invented a dairy-free yogurt alternative. Handelsblatt, June 3, 2019, accessed on April 12, 2020 .
  40. ↑ Artificial meniscal implant available in Israel. Israelnetz.de , November 18, 2019, accessed December 26, 2019 .
  41. ↑ Medical-device firm Lumenis to be sold for $ 1.2b , 21c, November 20, 2019. Retrieved December 25, 2019.
  42. ↑ Intel buys Israeli success app , Jüdische Allgemeine, May 5, 2020. Retrieved May 6, 2020.
  43. ↑ Mareike Enghusen, IT location Israel - economic miracle , fire one. Retrieved July 5, 2019.
  44. ^ Israeli High Tech Flourishes in the Negev , March 10, 2018. Retrieved July 6, 2019.
  45. ↑ Zypries meets Israeli ambassador Hadas-Handelsman. Federal Ministry for Economic Affairs and Energy , accessed on July 13, 2017 .
  46. ↑ Israel and Germany are intensifying exchange in the start-up sector. Image , accessed on 13 July 2017 .
  47. ↑ Berlin looks toward Israeli chutzpah to rev up its start-up scene. Jerusalem Post , accessed July 17, 2019 .
  48. ↑ Israeli Tech's Identity Crisis: Startup Nation or Scale Up Nation? , Forbes, May 14, 2018. Retrieved July 16, 2019.
  49. ↑ Doctor Start-up , Jüdische Allgemeine, September 12, 2019. Accessed November 4, 2019.
  50. ^ The Charité - Universitätsmedizin Berlin, the Berlin Institute of Health (BIH) and the Israel Innovation Authority are cooperating , press release BIH, September 12, 2019. Accessed November 4, 2019.
  51. ^ Israel Advanced Technology Industries . Retrieved July 7, 2019.
  52. ↑ Start-Up Nation Central , accessed December 14, 2019.
  53. ↑ Israel Start-Up Nation introduces itself in Tel Aviv , Jüdische Allgemeine, December 12, 2019. Retrieved December 14, 2019.
  54. ↑ Israel Cycling Academy become Israel Start-Up Nation as WorldTour beckons , Cycling news, December 11, 2019. Accessed December 14, 2019.