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CTech: 2025 is bringing “a search for meaning” among Israelis, inspiring entrepreneurial dreams
Jan 24, 2025
Originally posted on CTech.
Yodfat Harel Buchris, Managing Director at Blumberg Capital, made the observations as part of CTech’s 2025 VC Survey.
2024 is over. How can you summarize it in terms of the Israeli high-tech industry?
2024 was a year of recalibration for Israeli high-tech. In the wake of the global economic downturn of recent years, we saw a strong focus on sustainable growth and capital efficiency. The Israeli startup ecosystem demonstrated breathtaking resilience despite the war, global geopolitical uncertainty, and a tightening funding environment.
I deeply respect and salute those who served in the reserves during turbulent times, as well as those who stayed at the homefront and stepped up to ensure ‘business as usual’ could continue as much as possible, while being concerned for their loved ones. Together, they exemplified the adaptability and determination that define our industry and nation, and our colleagues across the ocean recognize that.
Looking ahead to 2025 – What challenges and opportunities await the Israeli high-tech sector in the coming year, and how are you, as investors, preparing for them?
How will new American leadership affect the global high-tech industry or economy? And where does this place Israel and its entrepreneurs?
What are the three most important things the Israeli government should do today to accelerate the high-tech engine in the coming year?
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Strengthen academia-industry collaboration: At Blumberg Capital, it is a priority to help strengthen the connection between academia in Israel and the high-tech industry. The government should increase incentives for partnerships between academia and industry, such as funding joint R&D projects, encouraging commercialization of academic research, and fostering internship programs to equip students with practical skills. This will ensure a steady pipeline of talent and cutting-edge innovation for the high-tech sector.
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Enhance Israel’s global image: In 2024, we’ve seen a drastic decline in foreign investments amidst the war and political uncertainty. Israel’s high-tech industry thrives on international collaboration and investment. The government should focus on improving our global image and promote Israel as a hub of innovation and resilience through targeted awareness campaigns and global events.
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Expand R&D grants and tax benefits for startups: Continue the important work of the Israel Innovation Authority, and increase government support for early-stage companies through grants, tax breaks, and access to funding, encouraging innovation and helping startups weather economic challenges.
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