Connect with us

Hi, what are you looking for?

Jewish Business News

World News

Are Israeli Tech Start-Ups Selling Themselves Too Soon?


It is no secret that Israel thrives on its tech start-ups, and many succeed in getting the attention of foreign investors. However, the success of Israeli start-ups can lead to subsequent sales of the firms or the transformation of the original business into a shadow of its former self.

High-tech accounts for 12.5% of Israel’s GDP and half of its industrial exports, according to Reuters. However, there are many cases when foreign buyers sell off the acquisition a few years later, dramatically cut jobs, or turn the business into an R&D satellite for the purchaser.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

Avi Brenmiller sold Solel, a solar power company he founded to Siemens of Germany for $148 million in 2009. Siemens has since abandoned the segment, and its workforce is reduced to 50 workers from 500. Karin Mayer Rubenstein of Israel Advanced Technology Industry Association, says “In the last few years, most of the companies being bought don’t stay here as a separate entity, ” according to Reuters.

To reverse this trend, Israeli start-ups need to grow into larger entities that can make their own acquisitions, rather than being acquired. Dov Moran, who sold his company M-Systems to Sandisk for $1.6 billion says, “The fact that companies are sold is not really great for the country. Only R&D is kept in Israel, not sales, not logistics. We need companies that are creating jobs not just for talented engineers and programmers.” Moran said that if he had held on, he could now have a company with $3-4 billion in sales per year, and his former business has been reduced from 1, 000 to 700 workers.

It takes patience to build up a large business, but the short-term gains of selling a start-up often proven difficult to resist. However, more Israeli entrepreneurs are staying the course before selling. The number of Israeli IPOs in 2014, compared to acquisitions, was on the increase. Some believe the incentives from the government could help new start-ups hold out before selling out too soon.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Copyright © 2021 Jewish Business News