As Israel reels from Hamas terrorist attacks, some technology entrepreneurs and investors from so-called “emerging countries” are considering moving to the United States, sources tell On the Money.
“There’s a lot of patriotism going on right now, but it’s going to wane,” said one venture capitalist, who was told by several tech founders that they were considering exiting. “We saw a huge exodus of people to Miami or another city like it.”
“A lot of talented entrepreneurs don’t admit it to many people, but they are considering leaving their jobs,” he added.
Similarly, top investors who had previously traveled to Israel’s high-tech region known as “Silicon Wadi” are also canceling visits they had planned in the coming months, the people said. Ta.
Officials say employees at companies such as popular stock trading app eToro are now focused on protecting the country rather than pursuing initial public offerings.
Funding and new products are likely to be delayed given that so many high-tech workers are currently being called into combat, the source added.
Still, many venture capitalists remain convinced that Israel is the best place in the world to recruit talent and build companies, and that the conflict shows the strength of its people.
“I don’t think the founders will get a gratuity. I think we can get through this crisis on the same footing,” added Gigi Levy Weiss, founding partner of NFX. “We are going through difficult times and are already seeing the waves. We are not happy about this, but it does not matter to the business community.”
Israel’s vibrant technology sector accounts for nearly 20% of the country’s GDP. According to PitchBook, Israel has more venture capital firms per capita than anywhere else in the world, and most investments in Israeli startups include US-based investors.
Still, this summer was brutal even before the attack. A Startup Nation Central poll found that nearly 70% of 500 startups are considering moving some of their capital
Source: nypost.com
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