EU - Israeli Tech Virtually Untapped

Arno Froese

“Let’s do a little thought experiment. If I ask you for a great Israel success story on the US market, what comes to mind?” asked Ido Alon, Director of Strategy & Change at KPMG in Israel. “Maybe one of the huge company acquisitions that have been made, or a big IPO. There are many examples.”

The EU, with some 500 million people, is already a significant trading partner with Israel, importing about 40 billion euro from Israel and exporting 20 billion euro a year. However, its role in Israel’s hi-tech ecosystem is little felt. 

Part of that has to do with investors and valuations. “The EU doesn’t have a strong venture capital market. In fact, it is very weak,” Alon said. “Investment at a high company valuation is one of the main things a startup is looking for, and US VCs offer much better opportunities than European investors or markets in that regard.”

For these reasons and others, Alon said, Israeli startups are focused almost exclusively on the US market. “But the opportunity is tremendous, the markets are close in proximity, and there are already trade frameworks in place,” he said. So how do we make things change?

Investment requires, among other things, becoming a stronger part of Israel’s economy. While 230 American companies have R&D centers in Israel, only about 50 European corporations do so, Alon said. “Hundreds of European multinational companies could benefit from partnering with Israeli firms.”

-www.jpost.com, 25 January 2021

Arno's commentary

Israel’s high-tech success is unquestionable, but as the article indicates, Europe has not taken advantage of Israel’s tech startups as has the USA. What will be the result? Quite naturally, Europe’s involvement with Israel will have to increase. That, incidentally, is part of the progressive development of the world’s globalism—further integration, with the simple aim of creating a global world.

What is the end? We repeat: “…and all the world wondered after the beast. And they worshipped the dragon which gave power unto the beast: and they worshipped the beast, saying, Who is like unto the beast? who is able to make war with him?” (Revelation 13:3b-4).

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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