Business and tech soldier on
Four Israel-Australia business minds discuss the effect of October 7 on Israel and its hi-tech economy.
Abe Weiszberger
Abe Weiszberger, CEO, Stick On Signs, Australian distributor of Israeli high-tech
Massivit is an Israeli company and an international provider of industrial 3D printers used across 40 countries and in industries ranging from automotive manufacturing to theme park design.
It has customers in Australia, and its Australia-New Zealand distributor, Stick On Signs, is based in Melbourne.
As a leading Israeli technology company, Massivit has faced unprecedented challenges due to the ongoing conflict in Israel. Despite these difficulties, the company remains steadfast in its commitment to innovation and to providing cutting-edge solutions to its global customers.
The war in Israel has deeply impacted Israeli technology providers such as Massivit. The company’s headquarters, based in central Israel, is located at the heart of the conflict zone.
As a result, it has experienced significant disruptions to its operations, including human resources shortages. Many essential staff members, across various departments, have been called up as reservists to defend the country, leaving critical positions unfilled for extended periods.
There is an increased workload on remaining staff. Those still available have had to take on additional responsibilities to compensate for the missing workforce, leading to pressure on their daily tasks and a strain on operations.
And there is a psychological toll. The heightened levels of recruitment have placed immense pressure on the families of employees, many of whom are experiencing the trauma of losing loved ones or having family members in harm’s way.
The emotional toll is widespread, affecting morale across the country.
Despite these challenges, Massivit has maintained its resilience, largely due to the company’s strong family-like culture and its deep-rooted commitment to innovation. Even in these difficult times, the team continues to drive progress in the field of industrial 3D printing.
Massivit’s technology – impressively large 3D printers capable of printing parts the size of a room – remains an attractive solution for industries needing fast, custom manufacturing.
Massivit’s ability to adapt and evolve amidst adversity is a testament to the company’s strength and drive for growth.
Jeremy Ungar
Senior trade officer at the Israel Trade and Economic Commission
More than a year ago I spoke of “The Sound of Silience” coined from the word resilience; while silence descended upon the vibrant Israeli tech community, resilience was born from shock echoed through empty startup chairs.
18 months on, resilience, the Israeli startup mantra cornerstone, is not impervious to externalities. It is fire-forged and the war flames burn deep. Imagine the founder, their dream on the cusp of reality, facing empty workspaces. Their teams called away to defend our homeland. The hum of progress replaced by anxious waiting silence. This is the reality of labour shortages.
Now picture the investor, once eager to fuel the next breakthrough, hesitant, hands trembling over the cheque. Funding challenges aren’t just spreadsheets and projections; they are dreams deferred, potential unrealised.
These operational disruptions are more than mere inconveniences stifling creativity, the weight of uncertainty pressing down on every decision. Sector-specific impacts halting life-saving medical trials, dimming lab lights. While the startup hallways are quieter than before and the investments are less numerous, the quality of output and the amount raised has increased, which is due to the Israeli resilience and our communal belief in and support for the future.
Let’s not disguise the truth. This war has wounded us. It has tested our spirit, stretched our resilience to its limits. Yet, amidst the silence, a new sound is emerging. It’s “the sound of silience”, of Israelis refusing to be broken. It’s the sound of innovation finding new pathways, of a community rallying together. We are not just adapting. We are rebuilding. We are proving, once again, that from the ashes of adversity, the spirit of Israel will rise, stronger and more determined than ever. We will turn empty chairs into innovation symphonies, testament to the enduring power of hope.
Marcus Mandie
CEO of the Australia-Israel Chamber of Commerce (Victoria)
The past year was a traumatic time for the people of Israel and the region. However, despite the war’s upheaval and the unique challenges facing Israel’s economy, there were remarkable achievements and notable investments into Israeli startups, indicating that Israel’s high-tech sector is well positioned for growth in the years ahead.
Not many companies could handle losing 30 per cent of their workforce when staff were mobilised to protect the country, yet this was reality for some Israeli startups.
A survey by Startup Nation Central revealed that 49 per cent of Israeli technology companies experienced investment cancellations, with approximately 24 per cent of companies shifting some of their operations within or outside of Israel to address the challenging conditions.
Many smaller startups were forced to close, others had to survive without further investment rounds originally expected. The Israel Innovation Authority administered a “Bridging Fast Track Fund” to help startups and to provide more time.
International flights to and from Israel were cancelled, making business and customer engagement more difficult and slowing company sales.
Yet despite these real challenges, Israel’s high-tech community adopted the motto “Israeli Tech Delivers, No Matter What” and the results speak for themselves. The Economist ranked Israel’s economy as the sixth best in the OECD in 2024. Its tech sector proved remarkably resilient, raising around $10 billion.
Cloud security provider Wiz knocked back Google’s offer to purchase the company for $US23 billion in July 2024. Wiz went on to purchase another Israeli cloud security company Dazz, for $450 million and on March 25 this year sold to Google for a record $US32 billion.
In January, Nvidia announced a $500 million investment in a new AI research and engineering centre near Haifa. This follows their purchase of two Israeli AI related startups for $1 billion combined during the last year.
Major Silicon Valley-based venture capital firms, Sequoia Capital and Greylock Partners opened new offices in Israel, signalling confidence in Israel’s entrepreneurial innovation and a desire to be up close and part of Israel’s dynamic startup community.
Israel is the third largest AI venture capital eco-system, behind USA and China and Nvidia’s Israel-1 supercomputer is one of the world’s fastest supercomputers, ensuring Israel’s AI infrastructure is well positioned to support Israeli AI innovations.
Cyber security attracted 52 per cent of private funding during the year and global demand for defence-related products continues to grow.
The Australia-Israel Chamber of Commerce is organising trade missions to Israel to explore some of these themes and we welcome participation from anyone interested in discovering business opportunities and fostering collaborations.
Paul Israel
Executive director of the Israel-Australia Chamber of Commerce
The Israeli start-up eco-system infrastructure is made up of numerous factors like the number of engineers, size of the venture capital industry and strong academia. These elements are able to be copied and pasted to other countries, obviously with various modifications. The cultural aspects are a lot harder to duplicate and are very unique to Israel and quite frankly are often the most interesting elements for visiting business executives to observe, learn about and be inspired.
Here, I am referring to celebrating success, accepting failure, questioning authority, thinking out of the box, ‘chutzpah’.
Everyone agrees that October 7 will change Israel forever and like other significant milestones in Jewish history, we will come out stronger through our inherent resilience.
Family bonds
Everyone goes through an unbelievable emotional rush when watching the returned hostages reuniting with their families for the first time since being released. Witnessing that first hug, the first conversation, hearing about the first Shabbat dinner is something we all observe with absolute glee. These images are only going to strengthen the importance of family and the related bonds and ties.
Nearly all the top CEOs and entrepreneurs we meet on Chamber delegations recognise the strategic role their families play in forming their confidence to become leaders.
Stickers
“Going by yourself you can get to your destination quicker, going together you can reach a further distance”. “Be kind, be good, be you”. “We don’t have another country and now it’s my turn to defend it”.
Anyone visiting Israel post October 7 cannot ignore the stickers one sees in the streets of the various victims. These stickers have a photo with a motto or a value that is symbolic of the person’s qualities and character. These images of fallen soldiers, the Nova party victims only strengthen the feeling of community, caring for others which are a tangible part of the fabric of society.
The concern and care for those beyond one’s family and immediate community is very special and hard to replicate.
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