{"id":807,"date":"2023-11-12T07:40:35","date_gmt":"2023-11-12T07:40:35","guid":{"rendered":"https:\/\/bridgewise.com\/?p=807"},"modified":"2024-02-22T15:57:47","modified_gmt":"2024-02-22T15:57:47","slug":"israel-tech-segment-review","status":"publish","type":"post","link":"https:\/\/bridgewise.com\/blog\/regional-focus-opportunities\/israel-tech-segment-review\/","title":{"rendered":"Israel Tech Segment Review \u2013 Challenging Times"},"content":{"rendered":"<p>By Ilan Furman, CFA<\/p>\n<p><span style=\"font-weight: 400;\">Israel, the country most known for its tech achievements, is in the midst of war against terror. Though the current situation is challenging we continue to witness the resilience, global integration and the long term potential of Israel\u2019s tech ecosystem.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Current days \u2013 Israel\u2019s tech ecosystem in the midst of the war\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Since October 7<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> , following a deadly attack by Hamas, Israel in general and of course, Israel\u2019s tech sector are under stress. Currently many employees are drafted for reserves, and the country faces limited travel capability and geopolitical instability. However, amid all these challenges, the sector continues not only to pursue its business objectives but also supporting civil and humanitarian objectives.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most of the activity is done on the civil front \u2013 some tech companies converted their offices to house refugees from Southern and Northern Israel, some enabled free access to their products and services, giving relief to the local population. On the humanitarian front there is activity as well. For example, companies are applying different methodologies to aid locate and bring back the hostages.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Israel\u2019s tech segment also plays a role in defending Israel. This leads to significant innovation in defense. The iron dome is at the forefront of such innovation. This is a defence system that helps protect cities and civilians by intercepting and destroying rockets in mid-air. This system was actively used in saving lives and generated a lot of interest around the world.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From a business continuity perspective, there are several factors supporting the sector in these challenging times.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Israel\u2019s tech segment is very global with over 450 multinationals having presence in Israel and employing about 70K employees. Examples include <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/8514a052-2f82-4d4e-8a1e-aeeb5731351c\"><span style=\"font-weight: 400;\">Google<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/a880c889-915f-4600-8173-8ae1d7ace3ed\"><span style=\"font-weight: 400;\">Microsoft<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/de77bf0f-a4be-4dee-a6d0-dd82a7d38388\"><span style=\"font-weight: 400;\">Amazon<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/86414239-560f-44ab-afc1-77fb5cf1f182\"><span style=\"font-weight: 400;\">Nvidia<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/10595696-fcda-4b21-a27d-bfbc8806e3b0\"><span style=\"font-weight: 400;\">Meta<\/span><\/a><span style=\"font-weight: 400;\">, and many others.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Israeli start-ups are global companies \u2013 they sell their products and services around the world. Therefore, they are quite resilient to the economic and political scenario in Israel.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Talent \u2013 the human talent, the key driver and contributor to Israel&#8217;s tech locomotive, is present and extremely motivated.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Remote work \u2013 post covid and as a start up nation \u2013 remote work solutions are extremely effective in Israel\u2019s tech environment.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Israel tech segment is very integrated with global tech segment \u2013 examples:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Israeli tech segment continues to be very integrated with the global tech segment. This is a key contributor to the resilience of this sector. Reviewing several examples below, indicating and supporting the expectation for a prosperous trajectory.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Many drivers around the world are very grateful for Waze, the GPS navigation app. This application was developed in Israel and acquired by <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/8514a052-2f82-4d4e-8a1e-aeeb5731351c\"><span style=\"font-weight: 400;\">Google<\/span><\/a><span style=\"font-weight: 400;\"> in 2013.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Israel is a leader in AG tech. The country has developed advanced irrigation techniques, drought-resistant crops, and precision agriculture solutions that help address global food security issues.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mobileye, an Israeli company specializing in the innovative field of autonomous driving technology was acquired by <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/67b8487e-914d-4bfb-ba00-a13dd3df7950\"><span style=\"font-weight: 400;\">Intel<\/span><\/a><span style=\"font-weight: 400;\"> for $15.3 billion in 2017.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, when the world is closely following the AI trend and the chip maker <\/span><a href=\"https:\/\/app.bridgewise.com\/report\/86414239-560f-44ab-afc1-77fb5cf1f182\"><span style=\"font-weight: 400;\">Nvidia<\/span><\/a><span style=\"font-weight: 400;\">, it\u2019s important to remember Mellanox \u2013 an Israeli company that played a significant role in AI adoption providing the needed high performance solutions that support the scalability of AI and machine learning data load. Nvidia ended up buying Mellanox in 2019 for $6.9 billion.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Even in uncertain times, Israel remains a true technology power house providing opportunities for investors around the world.<\/span><\/p>\n<p>&nbsp;<\/p>\n<div class=\"ads__inline\">\n<div data-google-query-id=\"CKK08ZO6toEDFX4vBgAd8TwLZw\">\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-WSE\" class=\"btf-bodymidpagetwothirdswidth-4 up-show\" data-google-query-id=\"CLyf8uO6toEDFRJgFQgdxXMJWw\">\n<div class=\"nasdaq_ckeditor_ndq_video__main\">\n<div class=\"inline-image full-width\">\n<div class=\"inline-image__container\"><picture class=\"picture\"><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1100x620\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.38%20AM.png?itok=oVghiYJJ 1x\" type=\"image\/png\" media=\"all and (min-width: 1200px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1200x675\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.38%20AM.png?itok=8kDRSyXh 1x\" type=\"image\/png\" media=\"all and (min-width: 768px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/710x400\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.38%20AM.png?itok=hLVuu5AP 1x\" type=\"image\/png\" \/><\/picture><\/div>\n<\/div>\n<\/div>\n<div class=\"nasdaq_ckeditor_ndq_video__main\">\n<div class=\"inline-image full-width\">\n<div class=\"inline-image__container\"><picture class=\"picture\"><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1100x620\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.30%20AM.png?itok=_nTXOF6_ 1x\" type=\"image\/png\" media=\"all and (min-width: 1200px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1200x675\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.30%20AM.png?itok=OySyvPdp 1x\" type=\"image\/png\" media=\"all and (min-width: 768px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/710x400\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.30%20AM.png?itok=qwMWzbkE 1x\" type=\"image\/png\" \/><\/picture><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"nasdaq_ckeditor_ndq_video__main\">\n<div class=\"inline-image full-width\">\n<div class=\"inline-image__container\"><picture class=\"picture\"><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1100x620\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.15%20AM.png?itok=IxUX42IE 1x\" type=\"image\/png\" media=\"all and (min-width: 1200px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1200x675\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.15%20AM.png?itok=SxfClJFX 1x\" type=\"image\/png\" media=\"all and (min-width: 768px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/710x400\/public\/2023\/08\/04\/Screenshot%202023-08-04%20at%2010.39.15%20AM.png?itok=csHYYFpV 1x\" type=\"image\/png\" \/><\/picture><\/div>\n<\/div>\n<\/div>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-Y4I\" class=\"btf-bodymidpagetwothirdswidth-2 up-show\" data-google-query-id=\"CMWBl5eMtoEDFdMjBgAdic4F2w\">\n<div class=\"nasdaq_ckeditor_ndq_video__main\">\n<div class=\"inline-image full-width\">\n<div class=\"inline-image__container\"><picture class=\"picture\"><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1100x620\/public\/2023\/09\/18\/Screenshot%202023-09-18%20at%204.03.30%20PM.png?itok=K_L1MiP4 1x\" type=\"image\/png\" media=\"all and (min-width: 1200px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1200x675\/public\/2023\/09\/18\/Screenshot%202023-09-18%20at%204.03.30%20PM.png?itok=l4JSqv0E 1x\" type=\"image\/png\" media=\"all and (min-width: 768px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/710x400\/public\/2023\/09\/18\/Screenshot%202023-09-18%20at%204.03.30%20PM.png?itok=6RUtrvbz 1x\" type=\"image\/png\" \/><\/picture><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"nasdaq_ckeditor_ndq_video__main\">\n<div class=\"inline-image full-width\">\n<div class=\"inline-image__container\"><picture class=\"picture\"><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1100x620\/public\/2023\/09\/18\/Screenshot%202023-09-18%20at%204.02.04%20PM.png?itok=-qCMMEL1 1x\" type=\"image\/png\" media=\"all and (min-width: 1200px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/1200x675\/public\/2023\/09\/18\/Screenshot%202023-09-18%20at%204.02.04%20PM.png?itok=dpySPBC3 1x\" type=\"image\/png\" media=\"all and (min-width: 768px)\" \/><source srcset=\"\/sites\/acquia.prod\/files\/styles\/710x400\/public\/2023\/09\/18\/Screenshot%202023-09-18%20at%204.02.04%20PM.png?itok=ASSJzlS0 1x\" type=\"image\/png\" \/><\/picture><\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Though the current situation is challenging we continue to witness the resilience, global integration and the long term potential of Israel\u2019s tech ecosystem.<\/p>\n","protected":false},"author":1,"featured_media":1351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[29],"tags":[],"class_list":["post-807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regional-focus-opportunities"],"acf":[],"_links":{"self":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts\/807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/comments?post=807"}],"version-history":[{"count":0,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/posts\/807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/media\/1351"}],"wp:attachment":[{"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/media?parent=807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/categories?post=807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bridgewise.com\/wp-json\/wp\/v2\/tags?post=807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}