TLDR:
- Israeli tech companies experienced a boom period from 2018 to 2022 but faced a devaluation since 2022.
- There is a pressing need to reposition the Israeli tech brand to regain its premium status in the global market.
In a recent article by Ctech, Rotem Eldar, Managing Partner and Co-Founder at 10D, discussed the challenges faced by the Israeli tech brand in the wake of a tough 2023. Eldar highlighted the need to position Israeli tech companies uniquely to recover their premium status in the global market. He emphasized the importance of collaboration among stakeholders to bridge the gap and elevate the Israeli tech brand.
Eldar also discussed the impact of global processes and local events on Israeli tech companies. He stressed the need for Israeli startups to adapt to global economic trends while navigating local geopolitical challenges. The political uncertainty and the war in Gaza have posed unique dynamics that Israeli companies need to address to align with global trends.
When asked about the state of Israeli high-tech amidst protests and war, Eldar acknowledged the devaluation of Israeli tech brands since 2022. He expressed optimism about repositioning the brand through concentrated efforts and collaboration. Eldar also shared insights into maintaining investor relations during challenging times and preparing for pessimistic scenarios, such as continued conflict or reduced government support.
In terms of investments, Eldar highlighted the surge in activity in 2023, surpassing previous years’ figures. He noted a focus on early-stage companies and highlighted the sectors of AI Infrastructure and quantum computing as promising areas for investment. Eldar also shared examples of intriguing investments made in 2023, such as Quantum Source and Zorro, with a focus on transformative technologies in quantum computing and personalized health benefits insurance.
Looking ahead to 2024, Eldar emphasized the importance of long-term business planning, critical evaluation of products, and the utilization of AI tools for advancement. He predicted an increase in early-stage investments, the emergence of new unicorns, and more exits via acquisitions in the coming year. Eldar also shared his expectations for the continued growth and success of portfolio companies like Qbiq and Zorro in 2024.
