Israel, the vc in the eyes of “silicon valley no. 2”


editor’s note: this article is a well-known venture capital man Adam Fisher wrote, a fairly detailed description about entrepreneurship and investment in the field of high technology in Israel are flawed. As a Bessemer Venture partners, who has long been responsible for investment projects to Israel and Europe. Articles published in first TechCrunch, hunting cloud network compiled in full as follows.

the nation of Israel, always disproportionately appeared on the world each big media. In international politics, the children of Israel, do our best to avoid in the spotlight, but its success in the high-tech innovation is inevitable widely attention.

over the past decade, the risk of Israel returns disappoint a lot of people who believe they have achieved. But when the bubble burst after ten years, Israel’s venture capital industry has been mature, in the past year has formed a turning point.

with the growing enterprises, Israel’s high-tech significantly higher return on investment, ambitious startups, began to focus on more financing. Israel’s high-tech industry may no longer according to the impatient investor and press the required pace, but over the past ten years proves that the Israeli high-tech trend is more than just a fleeting.

since 1992, Bessemer as a fund has been investing in Israel. When Israel today entrepreneurship environment with significant differences in ten years ago, in 2007 we set up special offices.

sharp increase ambition

Israeli entrepreneurs have been ambitious and entrepreneurial ecosystem of mature emerging company get a better chance to dream and to raise money. Growth in the start-up phase and gains of the entrepreneur, witnessed the counterparts in premature achievement when they were forced to sell or collapse. Not only does this mean that more entrepreneurs, there are more and more mature former top 50 companies to hire these people work.

from a certain perspective, since 2011, the annual risk investment support after m&a and IPO exit is growing. In the past 13 years, in addition to the earlier 2012 XtremIO sale and 2013 Intucell (Cisco) acquisition, Waze (Google) acquisition has always been the biggest risk investment transactions.

at the end of last year to start Wix companies listed on the nasdaq are Israel followed in start-ups Varonis company’s biggest IPO risk trades. If have no secret to submit request, like Mobileye, CyberArk, Outbrain, etc. The company will submit request listed in this year. In the near future, Google search “Israeli IPO” of the first result will be a public offering of startup, rather than the Israel philharmonic.

in most cases, multiple choice or high-risk independent management route let these companies after being refused to final success. However, compared with their American counterparts, Israeli start-up companies is very difficult to maintain independence.

before set up a company, with advanced technology and the early strategic partnership is very important. For these Israeli entrepreneurs want to independent contact remote client is difficult, so accept the usually early is a very wise decision.

direct access to the customer

however, if you want to make the company grow to control their own destiny “, it needs to have distribution channels, the most important thing is to have customer relationships. And Israel as independent companies and venture capitalists and proprietary IP is enough. “Accordingly, Israel’s success often depends on establishing strategic partnership and able to form a relatively low cost and risk to sell technology to the distant market original equipment manufacturers. Although it is often forgotten, but it is likely (Sun), Amdocs (AT& T) and Gilat (GE) of the company’s success story.

twenty years later, the Israeli companies know that partnership is the ability for companies to remain independent. Unfortunately, these companies are still inclined to hire business developers before sales. But the success of the company insist on trying to get customers and maintain good customer relationships.

the transition of the whole industry marks the rise of the Internet, with SaaS and mobile company as an example, the two types of companies in Israel was once considered unthinkable. Whether through advertising channels, and the mobile platform, sales representative or Wix, Waze and Outbrain company respectively by designing a scalable method of direct access to customers. As many companies focus on business model, they are keen to avoid is known as the “savior” of the original equipment manufacturer and establish an independent launch strategy.

VC round

venture capital companies in the United States into the Israeli market for the first time was in the late 90 s, mainly focuses on the initial startup by Israeli foundation investment follow-up financing. In the past five years, late early foundation of the traditional role of Israel and America foundation’s role has become blurred. Six, including BVP stationed in Israel venture capital firms is the most active early investors. And recently formed at least four Israeli venture-capital companies mainly focus on investment opportunities in the late.

the resulting in the early stages of the brand further incitement to the Israeli entrepreneur’s ambition and desire for independence. American investors not only brings more money, more reflects the American market and fierce competition. Venture capital companies in the United States have also launched more ambitious aims to help Israel startup faster growth of business risk, including equity financing, merger and acquisition strategy and founder liquidity had been avoided. This is the risk investment company to direct customer acquisition strategy and strategic partnership.

promising

the recent success of all investors are once again focused attention on the in Israel. The risk of active investors began to get returns after long wait, while the institutional investors have flocked to stop again.

some people think that these start-ups have not developed to the point of concern, the fact will tell them wrong. High and new technology industry has matured, Israel machine in the future years, we will continue to see all kinds of big mergers out of the case and IPO. Israel is the only one who really can compete and silicon valley technology, silicon valley and are very clear. As the political observers think that Israel is no longer a loser, almost no tech giants and investors to underestimate the potential of Israel company.

Source: