The Israel Innovation Authority published recently the findings of its third annual survey, conducted in November 2024, examining the state of high-tech companies in Israel since the outbreak of the war.
Spoiler: Israel’s companies need capital. At the first glance. But this is not the whole story.
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“The survey reveals a mixed picture of resilience and challenge for Israel’s high-tech sector in the wake of the ongoing war. While 38% of companies expressed optimism about the future, nearly half reported implementing efficiency measures, including cost reductions and layoffs, to adapt to operational disruptions caused by prolonged military reserve duty, flight cancellations, and global investors’ caution. Alarmingly, 80% of companies indicated a need to raise capital within the next six months, with 43% identifying fundraising as their primary challenge. Despite these hurdles, 70% anticipate sales growth, and nearly half foresee employment growth in Israel and abroad, signaling cautious optimism and the industry’s ability to adapt under pressure.” (IIA Report released 19.01.2025. Highlighted figures by VonNaftali)
The main reason is the war, which, of course, affects the workforce. You need not be a rocket scientist to understand the causality. Another effect of the war is the shortage of mobility. 74% of companies reported that flight cancellations hinder their ability to conduct business abroad.
The longer the war lasts, the more and longer the workforce is in the field instead of at work, and mobility only brings higher profits to the monopolist EL Al, who, critics say, is taking full advantage of the situation.
About one-fifth of the companies said that prolonged war would have a significant impact on their company, including slowdowns and even closures. No surprise.
Just Victory
The solution is straightforward and lies within the responsibility of the political and military echelon of Israel. Win the war! Quick and solid. No delay. No hesitation. No procrastination. Smash the enemy Hamas, PA, Hezbollah and Iran. In one go. No talks, no deals anymore. Just Victory. Quick.
President Donald J. Trump opened the gates aka opportunities: Yes, I deliver the ammunition. Yes, you can drive out the “Palestinians”. Yes, it is your war (no more micromanagement and interference). Go for it. There is a saying: you can only lead the horse to water. The horse must drink itself.
It is up to the decision-makers. The war must be won quickly and quickly. But who decides in Israel? No one knows at the moment. Is it the elected government and the elected representatives or the unelected elites of the deep state who are delaying the war with their false assumptions? You don’t win a war without leadership, just with raids and defensiveness. You only lose soldiers.
The economy now needs a quick, clear victory. Just Victory. The enemy must be destroyed this time. Unconditional surrender. Take the land, build and stay. It is Israel’s ancestral land. Isreal is allowed to decolonize. Spain was once conquered by Muslims. Spain regained its territory from Muslim rule. No one had a problem. The same holds true for Israel. We are entitled to do so.
After more than 70 years, we know that we cannot make agreements with this enemy. The enemy says this at every opportunity.
Pursuing the same strategy for 70 years (appeasement and “deals”: peace for land, peace for money, quiet for quiet, peace for deal…nothing worked), getting a bloody nose every time, and then believing that the next time you will get different results, is called stupidity.
Israel now has a unique window to permanently regulate the situation in its favour. Now it needs determined leaders and decision-makers who can put the deep state in its place.
But the political elite, whether left or right, has been de facto incapable of making decisions and acting and is behaving like a puppy towards the deep state and the enemy for many years. One wonders why. Israel is losing to itself, not to its enemies. Therefore, just a victory. Victory knows no compromises.
Israel has unfortunately no Milei, no Trump, even Meloni would be sufficient. PM Netanyahu can’t be part of an axis of freedom. He and the elected government collapsed. Lost the war, lost the democracy to the unelected left elites of the deep state.