Israeli Startups Seek Global Scale Through Expert Connections

A new program, ScaleUp House, co-led by Calcalist and Showcase IL in partnership with LeumiTech, aims to help Israeli startups transition from local success to global prominence. The program selected 25 companies from hundreds of applicants that have already passed the initial stages, raised capital, and are generating revenue. The initiative focuses on building a network of investors and partners to support these startups over the next year.

The program's launch event featured a speed-dating format where startup founders met with venture capital investors and partners for seven-minute one-on-one sessions. Held on the 61st floor of the Azrieli Sarona Tower in Tel Aviv, the event emphasized the importance of strategic connections over scenic views. "You didn't come for the view," noted Oded Satar, Vice President at Azrieli Group, highlighting the event's focus on crucial business meetings.

Industry leaders stressed that the investment landscape has shifted, with investors becoming more selective despite ample capital. Maya Eisen Zafrir, CEO of LeumiTech, explained that startups must now focus on "go to scale" rather than just "go to market," emphasizing the need for a unique competitive advantage, or "moat," which could be strong customer bases or proprietary data. She advised founders to be focused yet open during their pitches, ready to listen and adapt.

Sharon Bar Zik-Cohen, Partner and CFO at Kima Ventures, added that companies need to be exceptional, solving difficult problems in inimitable ways to secure funding. She also pointed out the necessity of an international presence for global expansion, with some CEOs relocating early in their company's lifecycle.

Avi Feldman, Partner at Mobileye Ventures, highlighted the additional risk perceived by foreign investors when dealing with Israeli companies due to geopolitical realities and potential antisemitism, particularly affecting startups outside the booming AI and cyber sectors. He argued that connections with potential partners are more critical than immediate funding for Israeli startups aiming for international growth.

Or Koren, Head of Partnerships at Google Israel, warned growing companies against relying on past strategies and emphasized the need for significant internal changes. She noted that while the Israeli reality is complex, with potential disruptions like military reserve duty, Israeli entrepreneurs' agility and resilience enable them to build strong companies even amidst uncertainty.

One participating startup, AI Radio Pharma, co-founded by Sigal Clemenson-Kushnir, is developing targeted radiotherapies for cancer using AI. Having already established a US headquarters to navigate international investment challenges, the company seeks networking opportunities through the program to build its ecosystem and achieve its goal of curing cancer patients and establishing a significant pharmaceutical company.