Venture Capital: ISRAEL OUTPERFORMS THE WORLD.

It’s hard to believe, but recent reports from ‘OurCrowd’ and other organizations show that Israel is outperforming the world in terms of venture capital aka investment growth. Israel is transforming from a ‘start-up nation’ to a ‘scale-up nation’. During war! What a miracle.

What does that mean? Venture funding, or to put it simply: risk capital, in Israeli start-ups grew by an incredible 31% from Q3/Q4 2023 to Q1/Q2 2024, according to Jon Medved, CEO of the world’s largest crowdfunding platform for companies, ‘OurCrowd’.

In the same period, venture funding for start-ups grew by 16% globally. So, Israel outperforms the world. Unsurprisingly, but still well behind, the USA is in second place in terms of venture capital growth with 28% growth.

The regions of Europe (-6%) and Asia (-18%) are even seeing a decline. They are shrinking in this key area. Venture capital and start-ups mean innovation and scaling. Whoever is ahead in this race will win the future. Based.

Jon Medved explains in his current article ‘4 reasons why Israel is leading a global VC rebound despite the war’ that this growth was not the result of Israeli domestic investment by the state. “No, this was not a case of Israeli institutions propping up the local economy. Foreign investors account for 46% of the 217 active venture funders in Israel. They participated in 93% of all funding, a seven-year high and a resounding vote of confidence by the global financial community in Israel’s innovation ecosystem even as the rockets were flying.”

The war and the conspicuous disloyalty, even hostility, of the USA under Biden/Harris and the EU can perhaps also be explained to some extent by the fact that Israel is, simply put, an unpleasant competitor in the venture capital market and simply taking the bread and butter from the USA and the EU (under German leadership). NEITHER THE USA NOR THE EU WANTS IT. A competitor is a competitor. Full stop.

For reasons of economic competition, states like the USA or Europe – and to say all states, empires, and kingdoms – have often chosen war as a means. Nothing new, no surprise. Especially wars which you do not have to wage directly with your own blood.

Jon Medved finally concludes: “Israel’s venture numbers are rebounding significantly at twice the global rate. And underpinning this rebound are the sectors where Israeli technology excels: cybersecurity, AI, defense and deep tech. If this happening now, just imagine the boost to Israel’s tech sector and to its broader economy as soon as this war ends with Israel’s security and deterrence restored.”

I noted something similar back in 2018 and spoke of the competition between Israel and Europe in the venture capital market, which is an additional factor driving the EU to turn against Israel. The EU has been losing this competition with Israel since 2010.

The EU is hostile to Israel not only for reasons of anti-Semitism but also for economic reasons. So in 2018 I finally expressed my hope: “A Marshall Plan (ERP) for the democracies in the Middle East. Maybe it will come from Trump. First, of course, Islamism in Ankara and Tehran must be dismantled.”

Well, a Marshall Plan was not coming, but something better: The Abrabahm Accords. Unfortunately, Trump lost the re-election, and the Islamism of Ankara and Tehran has become entrenched and is waging war against Israel and the West in general. The US Dems, with Biden/Harris, immediately set to work to dismantle the Abraham Accords.

Perhaps the Middle East will have a new chance with Trump’s re-election. Israel is ready: 31%!

PS: Now is of course the best time to invest in Israeli start-ups. If you need a hand, give me a shout.