Phoenix ESOP Chief Says He Remains Bullish on Israeli Tech Despite Turbulence

At Globes’ TECH IL conference, Eyal Freund, CEO of Phoenix ESOP, said Israeli high-tech has kept moving forward despite years of instability. He cited war, reserve duty, the dollar exchange rate and layoffs as factors that make life difficult for founders, saying, “If there is one thing that characterizes the period we are living in, it is that there are too many things we do not control.”

Freund said Phoenix ESOP works with thousands of tech companies and sees the industry’s financial data from the inside through transactions and valuations. That, he said, gives the firm a close view of entrepreneurs and employees, and the repeated pattern it sees is that “in the end, Israeli high-tech continues to move forward.”

Explaining why he is “long on Israeli high-tech,” Freund said the sector is not just code and technology, but people. “This is why you go long on Israeli high-tech,” he said, adding that the industry’s strength comes from “the amazing people who make it.” He said that if someone had predicted two years ago that the industry would see deals on the scale of the past year, few would have believed it. In his view, “Israeli high-tech is number one in the world at dealing with uncertainty in such an environment.”

Freund said being bullish on the sector does not mean ignoring risks, but recognizing the determination and courage of the people who keep advancing. He also pointed to global tech giants that open development centers in Israel, hire hundreds of workers and make acquisitions in the local industry. According to him, those companies account for more than 70% of state revenues from taxes and equity compensation. Looking ahead, he said, “Israeli high-tech will continue to grow, unequivocally,” and added that Phoenix ESOP’s planned “revolution” will give people more control in the equity world.