Israel Earns Its Name as the Startup Nation with Over 6,000 Startups
Israel Is the Original Startup Nation
Israel is the original “startup nation” and with good reason. The Jewish state’s DNA is wired for venturing into new territory, solving problems, innovating, and introducing new ideas, just as its ancestor Abraham did in biblical times.
Israel is a small country with a population of just over nine million people and over 6,000 startups, the highest per capita globally. Israeli startups have a global effect on jobs and revenue all around the world. No matter where you live or travel, you have likely benefited from Israeli startup technology and solutions.
What is it about Israel and Israelis that makes this small country the world leader in startup entrepreneurship?
Three of the Top Reasons for the Startup Nation’s Success
1. An Impatient Nation
Israelis are notorious for their impatience. When you couple impatience (particularly on the road) with problem-solving and innovative thinking though, you can generate some unique solutions to daily problems.
No discussion about Israeli startups would be complete without mentioning Waze, which was started in 2008 and was sold to Google in 2013 for USD 966 million. When Waze was formed, its founders intended to save commuters five minutes a day by showing them better routes to their destinations. The unique element of the Waze strategy is a combination of technical data and real-time user information. Drivers can report delays, accidents, and even the presence of police on the road. Waze uses a sophisticated algorithm in addition to real-time feedback, which has made it the global go-to GPS system for over 150 million users daily.
2. A Service Nation
Israelis know that they are destined to serve their country for two to three years once they graduate from high school. Most Israelis do so in the military while others perform civilian social service. Putting others before oneself is a part of the national identity and mindset.
Israel’s military, while hierarchical, supports and encourages all soldiers to voice their opinions and suggestions. While not necessarily implemented, the process of doing so nonetheless instills confidence about sharing ideas and allows for openness to having them challenged. Israeli culture respects and values people who think differently and it is not afraid of disagreement.
These same young people are both exposed to and tasked with addressing major threats. As a result, they emerge from the time they spend in the service with a way of thinking that not only can identify problems but that also seeks ways to anticipate and resolve them.
It is natural that Israelis often look for ways to solve security issues after their military service. Three Israeli cybersecurity startups in particular have collectively generated massive sums from venture capital and private equity funds.
Cybereason, established in 2012, offers solutions that detect threats and protect companies from infiltration. Sentinel Labs (also known as SentinelOne), established in 2013, focuses its security measures on virus detection and solutions while Checkmarx, established in 2006, creates cybersecurity solutions for app developers.
The service-nation mentality not only addresses critical security issues but also looks at quality-of-life solutions and adaptations for all citizens.
UPnRIDE is an excellent example of Israeli startup technology answering a universal need. This technology will change the lives of thousands of people globally. It is a remarkable Segway-like device that allows quadriplegics to stand up and move across many different types of terrain. This device not only improves quality of life and allows users more dignity, but it also helps reduce the medical costs associated with sitting for very long amounts of time.
3. A Chutzpah Nation
A person who has chutzpah can be characterized as someone who has audacity, is fearless, has quite a bit of nerve, and is generally not embarrassed to do or say things that others might find surprising, shocking, or even aggravating.
Israeli culture does not just accept chutzpah thinking. Israeli culture embraces it. A hallmark of the Israeli startup culture is the ability to think outside the box or to even create a new box altogether. It looks for solutions and invests in ideas that may be as disruptive as they are successful. This drive has led to the formation of startups that have altered and continue to revolutionize the way people do business.
An issue that a particularly successful Israeli startup sought to solve was the cost of freelance services and how service providers could connect with customers. Fiverr, which was established in 2010, offers service providers and consumers a new way to buy and sell services online for as little as five dollars. With Fiverr, you can be sitting in a café in Australia and purchase photo-editing and copywriting services from someone in London for a uniform price. The company has continued to respond to industry needs and now offers a way for in-demand freelancers to provide services at higher prices. While its headquarters are in Tel Aviv, Fiverr has a presence around the world with offices in New York, Miami, San Francisco, and Chicago.
Israeli startups thrive in a culture of mentorship, think tanks, argument, and partnerships. It is a style of doing business that puts people first, seeks to address problems such as traffic and major health concerns, and then works to scale in order to maximize the potential of a startup to succeed internationally.
