ISRAEL Case Study of an Ecosystem StartUps and Innovation Dr Laura Altschuler
All rights reserved to DUO IDB 2018
BEFORE INTERCONNECTION Network Carrier Constrained point-to-point connectivity, backhauling user traffic to central data center
WITH INTERCONNECTION
Lebanon Syria Mediterranean Sea Haifa Tel Aviv Jerusalem Jordan Beer Sheva Egypt Eilat
Dr. Laura Altschuler Bridging the Gap in Innovation Between Israel and Latin America
Innovate in Product Innovate in Processes Innovate in Organization Innovate in Commercialization
Innovate in Product Innovate in Processes Innovate in Organization Innovate in Commercialization
Innovate in Product Innovate in Processes Innovate in Organization Innovate in Commercialization
Innovate in Product Innovate in Processes Innovate in Organization Innovate in Commercialization
ISRAEL HITECH Software Biotechnology 6% 5% 7% 7% 1% 3% 4% 8% 14% 26% 19% Industrial/Energy Medical Devices & Equipment IT Services Media & Entertainment Semiconductors Consumer Products & Services Computers & Peripherals Telecommunications Other
ISRAELI DRIVERS Environmental Adversity Skilled Workforce Heterogenic Immigrants Defense Experience &Technology Industry/University VC Angel Mentor Community Sustainability
ISRAEL INNOVATION AUTHORITHY INTERNATIONAL Bi-National Funds European Programs Bi-National Agreements ISRAEL Magnet, Nofar Technological Incubators Tenufa BizDevSupport
INCUBATION STATUS 18 Incubators 8 In Peripheral Areas 26 Accelerators Incubation Term ~ 2 Years Financial: 3,5 Million NIS 2 Y-Project 15% Incubator 85% Government Paid Back by Success
SMART POLICES ENCOURAGE INNOVATION Universities/Research Center Business-Angel/VC Multi-National Corporations Technology Incubators/Accelerators Business Development Support IP Commercialization/License Industry/Private
NEW ISRAEL INNOVATION AUTHORITY INNOVATION LAB PILOT Platform for Cooperation Between Industrial Corporations and Startups
NEW PATENT IP: 2014 & 2015 BY TT COMMERCIALIZATION Bio-Informatics Agriculture and Plant Genetics "Clean" Technology and Environment Other Physics, Electronics and Electro-Optics Mathematics and Computer Science Chemistry and Nano Technology Medical Equipment Biotechnology Medicine 0 20 40 60 80 100 120 140 2014 2015
STARTUPS INVESTMENT Capital raised by Israeli high-tech companies 2013-2017 720 700 684 706 4831 5242 16% 6000 5000 680 660 666 3408 4307 15% 13% 673 4000 640 16% 3000 620 2404 24% 620 2000 600 580 1000 560 # 76% 84% 85% 87% 84% 2013 2014 2015 2016 2017 % Other Investements ($M) % Israeli VC Investements ($M) # Of Deals 0 $M Source NC-ZAG High-Tech Survey 2017
CAPITAL RAISED BY SELECTED SECTORS: 2013-2017 1200 140 1000 120 800 100 80 600 60 400 40 200 20 0 180 190 120 276 304 243 410 584 217 967 595 644 1135 791 810 0 $M 2013 2014 2015 2016 2017 # Artificial Intelligence $M Cyber Security $M Automotive $M # Of Artificial Intelligence Deals # Of Cyber SEcurity Deals # Of Automative Deals
HITECH ISRAELI STARTUPS
LIFE SCIENCE BY SECTOR Medical Devices 222 22 Industrial Healthcare 43 23 53 568 Diagnostics Biologicals 121 Bioinformatics 215 84 Agrobiotech Therapeutics Telemedicine
ISRAELI GOVERNMENT GRANTS 64 116 137 117 93 78 100 81 151 55 161 247 49 214 28 152 47 181 42 251 40 221 53 266 67 138 123 110 112 90 106 129 94 90 76 128 66 121 137 137 141 169 168 172 173 151 153 129 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Pharma Medical Equip. Biotech Million NIS Source: The Israel Innovation Authority
GOVERNMENT FUNDING VS PRIVATE INVESTMENT: 1991-2015 6000000 5000000 4000000 3000000 2000000 1000000 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0 Government Funding Private Investments Thousand Dollar
Multi National Corporations R&D Space/Medical/Cyber/Fintech/Agro NASDAQ-Listed Companies Scientific Papers Per Capita 93% Home: Solar Energy THAT S ALL?! Informal Investment High Nobel Prizes Melting Pot Chutzpa Tzava Universities/Research Center/TT
IN ORDER TO BE A REALISTIC, YOU MUST BELIEVE IN MIRACLES
INTERNALIZATION Start-ups at t=o
ATTITUDE
SUSTAINABILITY
SUSTAINABILITY Shift in Thinking From To
START-UPS EXITS ARE NOT ACCIDENTAL
LESSONS TO ENTREPRENEURS Heterogeneous Empathy Measure Attitude Sustainability Value Player Internalization Ready
WHERE ARE WE GOING?
SHIFT BELIEFS BY SOCIETY BENEFIT Alleviating The Loneliness Of Senior Citizens Students: Offering A Solution To Housing Issues Ministry of Construction and Housing, Ministry for Social Equality and the National Union of Israeli Students
I did not find the world desolate when I entered it My parents planted for me before I was born, so do I plant for those who will come after me Talmud
THANK YOU www.lauraaltschuler.com duo.idb@gmail.com