Doubling down on Israel: 5 reasons for optimism

This past year has undoubtedly been one of the most challenging in Israel's history, marked by events beginning on October 7 that brought unprecedented political polarization and a general sense of despair. The present and even more so, the economic future, looks bleak. Putting many investors on the defensive. So why am I optimistic about Israel's future?

As the founder of a fund, this year started with serious economic concerns; however, it has turned out to be a surprisingly strong year for Israeli cybersecurity companies. The sector is thriving. Sales remain strong, investments continue to flow, and exits keep happening. Glilot Capital didn’t slow down either—instead, we chose to double down on Israeli-related investments. As 2023 drew to a close and foreign investors paused, we stayed the course. Our reasoning was simple: Israel’s cyber industry is the best in the world. While this period is challenging, it will pass. As others grew cautious, we saw opportunity. By increasing our stake now, we are positioning ourselves to reap the rewards once the country stabilizes.

Kobi Samboursky, Co-Founder of Glilot Capital Partners

This bet began paying off sooner than expected. Foreign investors are already returning, recognizing that investing in Israel’s cyber sector isn’t a gamble, but a sound decision. Israeli cyber entrepreneurs are the best in the world. If anything, the past year has only made them more determined. Customers worldwide have long acknowledged Israel’s leadership in cybersecurity, much like Italy’s reputation for pasta and Switzerland’s for chocolate. If you need Cybersecurity, Israel is the place for you.

Some may argue that the cybersecurity and startup sectors in Israel are a bubble, suggesting that success cannot be generalized to the entire nation’s businesses. However, I disagree. Israel possesses unique advantages that set it apart from other countries. I am confident in investing in Israel, and I encourage you to consider doing the same.

Here are five reasons why I remain optimistic about Israel’s future:

• The Smartest, Most Creative, and Hardworking People

Yes, some of you may smirk, but those who have lived in Israel and abroad will agree—there’s no one quite like Israelis in terms of ingenuity and creativity. Spend just 24 hours with an Israeli entrepreneur, and you’ll witness a level of diligence that is remarkable.

• A Strong Sense of Mutual Responsibility

Despite the deep divisions we see, especially in politics, Israel has demonstrated extraordinary unity since the war broke out. Most Israelis are volunteering and contributing in many ways. Mutual responsibility is central to Judaism, and despite the challenges, we have the potential to build a level of unity that few other nations can match.

• A Natural Technological Innovation Hub

While everyone acknowledges that technology is the future, no country embraces this idea as broadly and as naturally as Israel. Countless delegations come here to learn how we foster innovation and how Israel continues to lead in the hottest tech sectors. The truth is, innovation comes naturally to us—it’s embedded in our DNA, and it’s here to stay.

• A Culture of Initiative and Execution

While knowledge is crucial, it’s not enough. Other leading nations invest heavily in knowledge production and preservation. With AI, knowledge is becoming widely accessible, some would say; a commodity. What sets Israel apart is our ability to take initiative and execute. We don’t just generate ideas—we bring them to life. This execution capability is a unique resource that no AI can replicate.

• Resilience in the Face of Adversity

It is not something we chose; however, our Jewish heritage and the challenges we face in our homeland, have made us more resilient than most nations. One of my foreign investors put it best: "I will always invest in Israelis. Anyone who grows up under such intense security pressures will lead in other areas as well. For Israelis, everything else is small." I see this resilience in our companies daily, but it applies beyond high-tech—Israelis, as a whole, are tougher and more resilient.

The entire Western world is grappling with serious challenges: deep divides between liberals and conservatives, the threat of Islamic terrorism, economic uncertainty, and a fragile democracy. Leadership, both current and future, is under question across the globe. Unfortunately, it’s likely that the situation in most Western countries will get worse before it improves. But Israel is better prepared for the challenges of the third millennium.

This has been a difficult year—a year that exposed our flaws and the mistakes we’ve made over time. Yet, it also highlighted our strengths. Now is the time to invest in Israel again. It’s not just the Zionist thing to do—it’s the smart economic choice. This is a long-term investment that will require patience and effort, but I am confident it will bear fruit.

Double down on Israel.

The author is Kobi Samboursky, Co-Founder of Glilot Capital Partners.