Israel's current context has effects on all areas of society. And the technology sector, one of Israel's economic pillars, is no exception. This is according to a survey conducted by the Start-Up Nation Policy Institute (SNPI) and the Israel Innovation Authority (IIA) among emerging companies in the sector.
Consulting a group of nearly 500 startups, the main consequences of the war against Hamas in the sector are a decrease in labor and a decrease in investment. The first has mainly to do with the mass mobilization of the country's military reserves and the second with a particular reduction in corporate financing for the earliest stages of development.
Although the responses to the survey raised alarms in the sector tech, confidence in the recovery of the sector is maintained, as has already happened after the Coronavirus pandemic.
The IIA's chief economist, Assaf Kovo, explained that the survey offers only a preliminary version of the situation, because the full analysis would require more time to develop. “The survey was quick, it was done days or less days after October 7. “I think everyone was still in shock,” Kovo warned.
Experts consider that, after the war, the sector tech national could have exponential growth, and witness the emergence of new startups that develop cybersecurity, AI and digital health.
Natalie Refuah, partner of the leading technology investment group Viola Growth, explains that even in the war itself, the importance of the sector for the country can be seen. “We are seeing a lot of innovation in the use of artificial intelligence and virtual reality applied to military and security products that will likely be transformed for civilian use after the war,” explained Refuah.