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CTech: 2025 is bringing “a search for meaning” among Israelis, inspiring entrepreneurial dreams

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Originally posted on CTech.

Yodfat Harel Buchris, Managing Director at Blumberg Capital, made the observations as part of CTech’s 2025 VC Survey.

“In 2025, I wishfully hope that the war will end, and all our hostages will return home safely. Israeli high-tech will face significant challenges, including rehabilitation, talent retention amidst political tensions, and staying competitive in global markets, ensuring we continue to drive the ‘AI train’,” said Yodfat Harel Buchris, Managing Director at Blumberg Capital.

 

Buchris made the remarks as part of CTech’s 2025 VC Survey, where prominent investors are invited to share their thoughts and feelings about the year ahead. As we settle into 2025, Buchris highlighted technologies and sentiments felt among Israelis that may shape the next few months.

 

Yodfat Harel Buchris of Blumberg Capital

Yodfat Harel Buchris, Managing Director at Blumberg Capital
(Photo: N/A)

 

“However, we also see immense opportunities in innovative AI applications and infrastructure, cybersecurity and defensetech, and deep tech disruptive technologies such as quantum technologies. Additionally, there is a noticeable ‘search for meaning’ among Israelis, inspiring many to pursue their entrepreneurial dreams,” she added.

 

Fund ID Name of fund/funds: Blumberg Capital I-V
Total sum of the fund: $860M
Partners: David Blumberg, and senior leadership: Bruce Taragin, Yodfat Harel Buchris, Steve Gillan)
Notable/select portfolio companies (active): BioCatch, Yotpo, FundGuard, Hunters, Theator Notable exits: DoubleVerify, Braze, Nutanix, Finaro

 

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?

In 2025, I wishfully hope that the war will end, and all our hostages will return home safely. Israeli high-tech will face significant challenges, including rehabilitation, talent retention amidst political tensions, and staying competitive in global markets, ensuring we continue to drive the ‘AI train’.
However, we also see immense opportunities in innovative AI applications and infrastructure, cybersecurity and defensetech, and deep tech disruptive technologies such as quantum technologies. Additionally, there is a noticeable ‘search for meaning’ among Israelis, inspiring many to pursue their entrepreneurial dreams.
As investors, we are committed to nurturing and supporting our portfolio companies during these turbulent times, backing new early-stage teams, and actively participating in non-profit initiatives to contribute to the broader ecosystem.

 

How will new American leadership affect the global high-tech industry or economy? And where does this place Israel and its entrepreneurs?

New American leadership may bring changes in trade policies, taxation, and innovation incentives, which could impact the global tech landscape. For Israel, known for its close ties to the U.S., this could mean both opportunities and challenges, depending on our leadership’s ability to maintain and foster the relationship. As always, we encourage Israeli founders to seek the right partners overseas, preferably those with an established history of working with Israel, who understand the local dynamics and remain confident in their support.

 

What are the three most important things the Israeli government should do today to accelerate the high-tech engine in the coming year?

  1. 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.
  2. 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.
  3. 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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