2018 was a good year for the Israeli economy, particularly the tech ecosystem. While the Israeli economy overall grew by a modest 3.2%, there was a near record amount of foreign investment in Israeli tech. As we wrap up this decade and are one-year shy of the third decade of this millennium the team at Clearview Partners is going to offer our predictions with some of the possible trends for the year ahead. As we relay them to our clients, who see us not only as holding the keys to successful business operations in Israel but also as advisors during these uncertain times. As is the case in this part of the world, the political situation can have an impact on the economy (but many times it does not) and variables such as these reflect the overall strength of the Israeli economy.
So without further ado, below are the five Clearview Partners predictions for 2019:
-Strong Chinese investment will continue into the Israeli ecosystem:
With that, and the trade war between the United States and China, Israel could be caught in the middle of this conflict. China still sees Israel as its springboard to the West, and in its ambitious drive to be the “Innovation Nation” China will continue its shopping spree buying up companies and technologies in the Startup Nation.
-Cyber will continue to be a strong export as the need continues to grow globally:
As the world’s needs for cyber continue, Israel will continue to produce top tier cyber companies. No surprise here until we hear about the next major data breach. As the headlines continue to be dominated by news such as this, more global organizations will look to Israeli tech as protectors of their data, the new gold.
-Political and possible regional instability will most likely not impact the economy:
A low intensity conflict might erupt, or even a large-scale conflict, but the Israeli economy has been able to continue humming effectively even when rockets were raining down. Predictions from some of Israel’s top generals indicate that the chance for a regional conflict in 2019 is low, but strategic errors have led to conflict in the past. Particularly since the beginning of the millennia Israelis have learned to execute despite very difficult political situations.
-Israeli/New York City tech ecosystem relationships will reach new levels:
New York City and the State of Israel have traditionally had a very strong relationship as the tri-state area hosts the largest concentration of Jews outside of Israel. With the opening of the Cyber Center in Soho, and the number of partnerships including the Israeli VC JVP and Cornell Tech the city is working to become a center of cyber excellence. When you thought the relationship couldn’t get any stronger, 2019 could shape up to be a monumental year.
-There will continue to be acquisitions as the ecosystem ripens:
Israeli tech companies have traditionally been acquired in M&A deals and this will continue to be the case in 2019. We’re in agreement with the excellent analysis by Israeli tech website Israel21c that the US will continue to be the major acquirer of Israeli tech companies. As the Israeli ecosystem matures, we will continue to see successful tech startups acquired during this year.
When we look at the global picture of innovation and business, Israel comes up as one of the most dynamic economies. There is a feeling in the country that things are moving in an upward trajectory as the standard of living increases for large segments of the population. Things are looking bright in 2019, and while there are always setbacks and challenges to overcome the Israeli business community knows how to handle them and ultimately thrive. Here’s to an amazing 2019!