In the coastal city of Herzliya, Israel, venture capitalist George Djuric, originally hailing from Bosnia as a young refugee, expressed his determination to travel to Israel amidst the country’s conflict with the Palestinian militant faction Hamas. Djuric, who serves as the chief technology officer at yVentures, is part of a delegation of approximately 70 tech leaders and investors from the United States who have made the journey to Israel.
Djuric’s personal history, marked by the Bosnian war of his childhood, informs his sense of solidarity with Israel. He is particularly supportive of the nation’s robust high-tech industry, which is recognized globally as a powerhouse, second only to California’s Silicon Valley. “For a technology fund like ours, being present here is logical,” he remarked.
Despite not being of Jewish heritage, Djuric feels a connection to Israel’s enduring spirit and is deeply impacted by the conflict. The October 7 offensive by Hamas and the subsequent public reactions have left a strong impression on him.
Experts in the field had anticipated that the Israeli-Palestinian conflict would disrupt the tentative recovery in the high-tech sector, crucial to Israel’s economy. With high-tech representing a significant portion of Israel’s exports and economic activity, the war’s impact seemed inevitable. Furthermore, the sector was already reeling from a decline in funding due to a global economic downturn and contentious domestic policy changes.
The conflict has indeed affected the economy, with growth projections downgraded from an initial estimate of 3.4% to about 2%. The forecast remains uncertain, and the situation has led to a portion of the tech workforce being called to military reserve duty.
Nonetheless, investment activity in the tech sector persists, although at a reduced rate. In the current year, startups in Israel have managed to secure upwards of $6 billion, a noticeable dip from the $16 billion raised in the previous year. Recent funding announcements include ScaleOps’ successful $21.5 million round and Zero Networks’ $20 million raise, showcasing continued investor confidence.
The sentiment among the visiting U.S. tech and investment community remains optimistic. “We’re not concerned with the short-term economic fluctuations,” stated one of the visiting executives, emphasizing their long-term positive outlook on Israel’s prospects.
The concept of the trip was inspired by the acts of other solidarity groups, including faith-based delegations. The organizers noted a gap in representation from the U.S. tech and venture capital sectors, which have deep ties with Israeli innovation. The initial plan for a small group quickly expanded as interest surged among American tech leaders and venture capitalists from prominent firms and institutions.
During their stay, the U.S. delegates engaged with Israeli counterparts, explored investment opportunities in emerging startups, and met with political figures and families affected by the conflict. They also visited towns that had been targeted in the recent attacks.
Investment interest in Israel remains strong among the delegation, with firms like Bain looking to expand their Israeli portfolios, particularly in cybersecurity. Gotham Ventures is similarly keen on investing in Israeli fintech startups, while new venture capital initiatives like The 98 focus on supporting women-led tech businesses.
For many of the visitors, the trip is not just about business opportunities but also a gesture of support for Israel during a time of turmoil.
Venture capitalist George Djuric, chief technology officer at yVentures, and around 70 other U.S. tech executives and investors visited Israel to show solidarity and support for the country’s tech ecosystem amid the conflict with Hamas. Despite concerns that the conflict could harm Israel’s high-tech sector, which is a significant part of the country’s economy, tech funding deals continue, with startups raising over $6 billion in 2023. The trip included meetings with local investors, startups, Israeli leaders, and tours of areas affected by attacks. Several investors expressed their long-term commitment to investing in Israeli tech, including cybersecurity and fintech startups, and in the case of VC fund The 98, women-led technology businesses.
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