As Israel grapples with the horror unleashed by Hamas, the extraordinary resilience and steadfastness of our high-tech sector is galvanized for the war effort. The tech industry, a cornerstone of our national identity and a key driver of our economy, is showing the world that even in the shadow of conflict, innovation does not pause; it perseveres.
The current crisis has deeply personal ramifications for the tech community. With 15% to 20% of our sector’s professionals called up for reserve duty, the human resources of our tech companies are significantly strained. These are not faceless soldiers; they are our colleagues, friends and family members, integral to the creativity and energy that fuel our renowned start-up ecosystem.
Despite this, there has been a remarkable continuity in operations. Tech companies are maintaining their service commitments to global customers, a feat that speaks to the sector’s robust emergency protocols and the deep commitment of those who remain on the job. In addition, the more than 450 multinational corporations with operations in Israel are holding strong and staying put. The resilience that is the hallmark of our industry is sending a powerful message to the world: the Israeli tech sector is built to withstand even the most severe disruptions.
However, the impact of the conflict on the sector extends beyond human capital. The ripple effects are causing slowdowns in funding cycles. For early-stage and seed startups, particularly vulnerable to market uncertainties, the situation is difficult. There is a genuine concern that the prolonged conflict and the accompanying economic instability could jeopardize a generation of innovation, setting back our tech sector’s growth. But there will be a “day after,” and the government will step up to allocate funds ensuring the future health of the technology ecosystem. In fact, the Israel Innovation Authority has already issued an emergency funding plan extending $25 million in special aid to startups.
It is precisely in these challenging times that the Israeli entrepreneurial spirit can be a source of strength and inspiration. Startups are displaying remarkable agility, pivoting their business strategies to adapt to the new reality. We are seeing an acceleration in innovations geared toward security, remote work technology, and communication solutions — areas of immediate relevance.
Furthermore, the crisis has galvanized unprecedented levels of support from international business communities. Global tech giants are offering assistance in various forms, from financial to logistical. Private equity firms, venture capitalists and individual investors are exploring ways to keep the funding pipeline open, especially for early-stage startups that are the most vulnerable. Perhaps most importantly, international leaders, including President Joe Biden, have come out strongly in support of Israel.
At Start-Up Nation Central, we are aware that our role in the ecosystem is more critical than ever. We’re actively working to connect Israeli tech firms with a broad spectrum of global resources, ensuring they have the support needed to navigate these turbulent times. Our initiatives are providing a lifeline to startups, facilitating everything from emergency funding to strategic advice.
One of the most heartening aspects of this period has been the tech sector’s self-mobilization. Volunteer groups comprising tech professionals are offering their skills where they are most needed, whether it is developing emergency response software, creating communication platforms for families affected by the conflict, or providing cybersecurity solutions to counter increased digital warfare.
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As we look to the future, the path to recovery will undoubtedly be challenging. The economic aftershocks of this conflict will reverberate for years, and the tech sector, so crucial to Israel’s economy, will need sustained support to regain its momentum. But if history has taught us anything, it is that the Israeli spirit of innovation and resilience is indomitable.
In these darkest of days, our tech sector is a source of hope and resilience. With each challenge overcome, each new solution developed, we are not just sustaining an industry; we are reinforcing our national resolve to thrive against all odds. The world looks to Israel for technological leadership, and even amid the debris of conflict, we continue to forge a path of innovation, solidarity and enduring strength.
Avi Hasson is the CEO of Start-Up Nation Central, a Tel Aviv-based nonprofit organization that promotes Israeli innovation around the world. Hasson previously served as Israel’s chief scientist and the founding chairman of the Israel Innovation Authority, and as an investor in Israeli technology companies.
