During the sixth annual "Trends and Forecasts" conference, Gigi Levy-Weiss, co-founder and General Partner of the NFX venture capital fund, expressed his concerns about the challenging landscape for startups in Israel.
He noted that the country has seen a significant decline in the number of new startups, with only around 400 expected to emerge by 2024, similar to the number from 2003. Levy-Weiss attributed this decline to a series of crises that have hit Israel, including the judicial reform and the recent war.
These events have caused a lack of new energy and activity in the Israeli startup scene, in contrast to the U.S., where there is a lot of activity around Generative AI startups.
However, there is still hope for the Israeli startup scene. Yifat Oron, Senior Managing Director at Blackstone, offered a more optimistic perspective, pointing out that the economic recovery in the U.S. could offset the negative impact of Israel's crises.
Hamutal Meridor, a Partner from Vintage Investment Partners, also shared her positive outlook. Moreover, the Israeli government has also taken steps to support the startup industry, such as providing tax incentives and creating programs to attract foreign investors.
This support, combined with the country's strong pool of talented individuals and a supportive ecosystem, makes Israel a hub for innovation and entrepreneurship. With the right support and resources, Israel's startup ecosystem has the potential to continue thriving and contributing to the global tech landscape. The presence of foreign investors and the potential for a wave of immigration could also bring new opportunities for growth and development.
