German companies, especially medium-sized companies, are very hesitant to invest in Israel or initiate business relationships. Large German companies also tend to set foot in Israel late and often only hesitantly. However, there are exceptions as you can read on VonNaftali.
Large US and British companies such as INTEL or google are simply faster and better positioned. That is why Porsche’s latest initiative to enhance its involvement in Israel is the right one; seen from a strategical point of view. However, why Porsche should not “ramp up” and has to do some homework first, read at the end of this articel. But, step by step.
The history of Porsche is rather a young one in Israel: Porsche Digital GmbH is the digital unit of the Stuttgart-based sports car manufacturer and has been involved in Israel since 2018. Porsche Digital seeks to itensify its presence in Tel Aviv in cooperation with Porsche Ventures. Porsche Ventures is the venture capital unit of Porsche AG and has locations in Stuttgart, Berlin, Palo Alto and Shanghai in addition to Tel Aviv.
‘The focus is on the topic of “cyber security”. Undoubtedly important, but not very future-oriented and rather defensive. In other words, a very “German” approach: It is better to avert risks and focus on safety than bold innovation.
In the press release the company, which is part of VW, explains: “Porsche Digital GmbH is intensifying its presence in Tel Aviv in cooperation with Porsche Ventures. The focus here is on the topic of cybersecurity: first, the company is expanding its investment activities to include a focus on cybersecurity; and second, it intends to further expand its team in the Israeli city with several highly qualified experts.”
“We believe in Tel Aviv as an innovation centre. Here, disruptive ideas and technologies are emerging in precisely the areas in which we want to grow,” says Lutz Meschke, Deputy Chairman of the Executive Board and member of the Porsche Executive Board for Finance and IT.
Backgrounds – Reluctancy and Untold History
Porsche Venture invests in innovative technology and business models around the world, according to its own words. Porsche also acquired a minority stake in the Israeli company TriEye in 2019, which focusses on sensor technologies for short-wave infrared signals, as reported by VonNaftali.
Further to note is the investment in Tactile Mobility from Haifa (Israel), as reported on VonNaftali. Remarkable the ‘digital architecture’ of the German car industry as deleniated in a background article on Nvidia to read on VonNaftali. Porsche Venture also invested additionally in three Israeli start-ups: Fleetonomy, Anagog and Griiip. In sum, Porsche Venture is invested in six Israeli start-up. That’s not many for a global player, to say the least.
The most recent investment is in the Israeli start-up Valence Security. Porsche Venture seems to celebrate its investment by understatement, although it seems to be neither an exclusive nor leading investment. One investor among others. That’s it.
In the press release of the start-up Valence Security you get to know: “Microsoft Corp.’s M12 venture fund led the Series A round with YL Ventures, Porsche Ventures, Akamai Technologies Inc., Alumni Ventures and Michael Fey, former president of Symantec Corp., also participating. Including the new funding, Valence has raised $32 million to date.”
With the words of Porsche Ventures: “Valence Security is the sixth Israeli startup in which Porsche Ventures has invested directly. The company develops and markets data security solutions in conjunction with the use of software.”
According to Porsche, around 350 experts work for Porsche Digital worldwide. They develop new digital business models for Porsche and beyond in an own kind of eco-system, established 2016, as the flowimage below illustrates:
“Porsche AG has been active in the start-up scene since 2016. The company has directly invested in about 30 start-ups in Israel, the US, Europe and China, and has invested in numerous venture capital funds in Israel, the US, China, and Germany.” (Newsroom: The Media Portal by Porsche)
(c) Image by PORSCHE AG
Future will tell, if this engagement is enough and not too late. It makes the impression of reluctancy.
Besides all that, Porsche and many other German companies should set straight their Nazi-background before they go to Israel. A background documented by the journalist David de Jong (Bloomberg News) in his book ‘Nazi Billionairs‘. A groundbreaking investigation of how the Nazis helped German tycoons make billions off the horrors of the Third Reich and World War II, unpunished till today.
“These industrialists allied themselves with the Nazis and built their fortunes with Nazi-supplied slave labor, and the more of their stories De Jong tells, the more that outrage seeks some kind of moral catharsis. But it never comes. These families (for example ‘Porsche’; note by VonNaftali) never paid for their complicity, and they prosper today, usually without even the fig-leaf of a brand-name change.“, writes Steve Donoghue (Founding Editor of Open Letters Monthly).
Porsche and VW have a very complicated history of ownership where also Qatar, who denies the right of existence of the State of Israel, plays a decesive role as it is summarized by Wikipedia:
“In July 2012, it was announced that Volkswagen AG was taking over the Porsche AG automotive company completely, which bears the same name, but is only a subsidiary of Porsche SE.[27][38] In June 2013, Qatar Holdings, through the Qatar Investment Authority, sold its 10% holding in Porsche SE back to the founding Porsche-Piëch family, giving them 100% voting rights in the holding company.[39] Porsche SE currently owns 50.73% of the voting rights in Volkswagen AG as the largest (controlling) shareholder.[40]“
Finally, VW or maybe justifyable to say “Porsche” was one of the leadpartner of the’ documenta 15′, which took place in Kassel (Germany) this year. The ‘documenta 15‘ is said to be worldwide largest anti-semitic art-show of the year 2022. In political responsibility are the Green Party (Bündnis90/Die Grünen) and the Social Democrats (SPD).
Perhaps, “Porsche” resp. VW may put straight not only their past but also their presence, because with that past and presence, it seems questionable that Porsche will have a bright future in Israel.
Maybe, to say last, but not least, Porsche may rethink the verb “ramp up” in its press release to announce its new investment strategy in Israel. Why? Read here, where the ‘Auschwitz-Birkenau Memorial and Museum’ is explaining the three ‘ramps’. To use the word “ramp up” as a German company with such a prominent involvement in Nazi-Germany and till today sponsoring anti-semitic projects, is for sure not a good idea.
Everyone knows what’s next. It will be said, “It wasn’t meant that way, the intern, we couldn’t have known, wrong comparisons and instrumentalization are made, we will investigate and examine it carefully, threaten with a lawyer and many more excuses.” Alone: After the deep and unpunished involvement of VW and Porsche in Nazi Germany, Porsche should not write, “Porsche ramps up its activities in Tel Aviv“. I’m sorry.