Opinion
Resilience and growth: Israeli high-tech poised for investment surge post-war
“For CEOs, managers, and even employees, the challenges are enormous, but especially in these demanding times, we have proven that the Israeli high-tech industry is even more deserving of the reputation it has built over the years,” writes Sagive Greenspan, CEO of Priority Software
This is not the first security-economic crisis that Israeli high-tech and economy have faced in recent years. Time and again, Israeli high-tech companies and startups have demonstrated remarkable resilience during periods of severe attacks, escalations in the south, and even during the COVID-19 pandemic.
The question arises – how do Israeli-based global businesses continue to excel and manage to consistently deliver value to their global customer base under testing circumstances like heightened security tensions, the evacuation of civilians, and the mobilization of reserve soldiers, especially considering that 10%-30% of the workforce is unavailable for regular duties.
From the very beginning of the conflict, there was an understanding among our employees that challenging times called for a significant commitment. Motivational speeches and words of encouragement resonated throughout our company, and despite an initial shock, the resilient nature of our team, a common trait in Israeli culture, quickly took over. Ultimately, the company’s emergency operating procedures underwent minor updates, yet these were familiar grounds for all involved. The organization skillfully strategized ways to bridge the gaps created by employees' absence. They focused not only on maintaining service quality but also on ensuring that customers experienced no interruption in their operations.
In recent years, many companies have developed operational flexibility. This quality is becoming increasingly essential, allowing businesses to remain functional even in extreme circumstances, especially nowadays, as crises become more frequent. The dynamic combination of employees' quick responses and expertise in crisis management, among other factors, is likely the key to effectively managing the current situation.
Related articles:
High-tech proves resilience and gains confidence from tech giants
What will happen post-conflict?
While we might see a temporary dip in investments, I firmly believe they will increase in the long term. Drawing from my experience as the CEO of Priority, I spearheaded the acquisition of six Israeli companies, investing hundreds of millions of shekels in the two years before the war. This experience has solidified my view: the value of Israeli companies has only increased. I'm confident that many other investors, including venture capital firms, share this perspective. While not all may express this publicly, such optimistic assessments are shared behind closed doors.
For CEOs, managers, and even employees, the challenges are enormous, but especially in these demanding times, we have proven that the Israeli high-tech industry is even more deserving of the reputation it has built over the years. Now, it is crossing another hurdle and proving its worth.
Intel's recent announcement of a $15 billion investment in Israel is a profound testament to the enduring confidence in Israeli resilience. This significant commitment, made amidst the war, reaffirms a similar pledge by the Israeli government made six months prior. Intel could postpone this announcement to a more convenient time yet chose to proceed amidst the war. Such a decision by Intel, a global technology leader, strongly suggests their belief in a positive long-term outlook for Israel. Had Intel anticipated long-term adverse effects from the conflict, they might have reconsidered or scaled back their investment plans.
Israeli resilience as the business card of the Start-up Nation to the world
Given the impact of the war on Israel's spirit and economy, it's important to recognize how our resilience has grown as a result. As entrepreneurs, CEOs, or decision-makers, you offer your product to global companies, including tech giants. When the discussion turns to the benefits of working with you, you can highlight more than your cutting-edge technology and skilled team but also your proven track record in reliably delivering services under any circumstances, be it natural disasters, conflicts, or other crises.
After all, you possess tangible evidence and validation that Israeli tech remains steadfast and operational, irrespective of the challenges.
Now is the time to revamp your company narratives, presentations, and pitches to foreground this unparalleled resilience and capability to thrive in adversity – attributes scarcely found elsewhere.
This resilience is what I believe to be the "secret sauce" of Israeli high-tech. Such a distinctive edge will undoubtedly be critical in strategic decisions across boardrooms. Looking ahead, this resilience will define the Israeli product and strengthen the high-tech sector, drive a more significant influx of investments and nurture a stronger generation of entrepreneurs.
Sagive Greenspan is the CEO of Priority Software
