Israeli Women’s Entrepreneurial Spirit Resonates Profoundly After Oct. 7 Terror Assault

For Israel’s thriving tech industry, glowingly billed as “the start-up nation,” it is not hyperbole to suggest that the country has been wounded in all economic sectors in the wake of the Oct. 7 terror attacks. These severe setbacks include cuts to its many wizened and lucrative tech employees, many of whom have been called up for military duty.

It has been reported in the days after the Oct. 7 terror assault that cybersecurity firms will continue to experience significant changes. This sector, for a host of reasons, makes up a great percentage of the country’s workforce. Many larger firms have moved their business headquarters to the U.S. and, in some cases, to Europe. Many have maintained their research and development centers, according to reports by Security Week.

The cybersecurity sector in Israel is, as reported in Security Week, “believed to employ more than 20,000 people. Microsoft, Intel, Palo Alto, and CyberArk are each thought to employ around 1,000 people in Israel, with Check Point Technologies employing around 1,500. Many of these jobs are in [research and development].” The Times of Israel estimated that in 2021, $11 billion was earned in this sector of the economy. According to Reuters, high-tech industries have been the fastest-growing sector in Israel and account for 14% of its jobs.

Sigal Gafni, an Israeli entrepreneur who grew up in the southern town of Arad, was at the Association of the United States of America (AUSA) summit in Washington, D.C., when the terror assault took place. She returned to her native country in horror and disbelief.  “I arrived in Israel,” she said,  “and it was immediately clear to me that my business will fall into a period where I probably won’t be able to work.”

SG Communications, of which Gafni is founder and CEO, provides various products and all types of services for high-tech organizations and those working in cyber and defense. Its primary aim is to support companies’ growth by opening new markets worldwide and differentiating their added value. “We, in Israel, are every day under the threat of a cyberattack, which has become an integral part by terrorists as they wage war against us,” said Gafni. She added, “in order to help communities in the world that are under attack and are subject to physical danger, we have developed unique products whose purpose is to identify in advance of these threats, and to deal with them in time to prevent injuries to innocents.” The products and services “specialize in consulting and  planning on a variety of advanced security solutions.”

There are five hundred multinationals operating in Israel — mainly research and development centers after buying Israeli start-ups — from Intel to IBM, Apple, Microsoft, Google and Facebook, Reuters reported. Just days after the terror assault, it was also reported that “tech companies operating in Israel are expected to fortify security as they could face disruptions.” In this same news report, Reuters cited the chief investment officer and founding partner at Cresset Wealth Advisors, Jack Ablin, who underscored that “short-term resources” could be diverted if the conflict expands. A growing number of Israel’s tech start-ups have already been incorporated in the U.S.

”Many start-ups are unprepared to deal with the crisis and are struggling to find investors. At a pivotal moment that determines a company’s survival, our goal is to bridge the gap and provide a tailor-made solution.” – Karina Rubinstein

Karina Rubinstein, an innovative expert and ClimaTech venture partner with InNegev, which according to its mission is dedicated to fostering top-tier Israel innovation and “generating a vibrant new growth model for the Negev region,” recalls that, “On Oct. 7, Israel [awoke] to the most horrific terror attack since its independence. Over 300,000 citizens, start-up founders and entrepreneurs among them, left their daily jobs to defend and protect our homeland. Many start-ups, though, are unprepared to deal with the crisis and are struggling to find investors. At a pivotal moment that determines a company’s survival, our goal is to bridge the gap and provide a tailor-made solution.”

The InNegev incubator, which is located in the West Negev, invests in early stage climatic start-ups. “During these challenging times, we are committed to helping the Israeli ecosystem. Our own activity has practically stopped, and we’re focusing on helping out wherever we can. I continue to share what we’ve been engaged [since the terror attacks] to help the ecosystem, specifically down south and cross-country,” Rubinstein said. Her experiences with investors and venture capitals are “not specific to the U.S., but around the globe. [I enjoy] the excitement of building new stuff from scratch, like [with] a new company, new product, and new markets.”

Viktoria Kanar, the CEO and founder of Re-Fresh, an innovative platform that offers an array of conceptual and technological solutions to the fashion and textile industries, said, “In the short term, U.S. businesses are hurting, and [American] companies with representations in Israel have had to operate without numerous employees who’ve been called up for reserve duty. In the long term, adjustments will likely be made in order to cope with the losses U.S. companies will bear due to the current situation.” Kanar’s Re-Fresh’s company has one solid U.S. investor in the U.S., which is SOSV. It is “one of the largest deep-tech investors in the world,” she said.

“I think that there is a huge problem in the climate tech community that has mostly — and blindly — come out against Israel, without any real background knowledge or understanding. It is not [aware] how much the Israeli entrepreneurial and start-up ecosystem has contributed to green tech innovation,” Kanar added. She remains hopeful, however, that “our contacts in the U.S. are not affected [as a result of Israel’s military response to the terror attacks]. I see it as our duty to educate and help people understand that doing business as usual is not an option. Israelis are known for their resilience, and some of the biggest investments in Israeli companies have been made during wars.”