Futuristic Israeli companies ‘an ideal investment opportunity’

STEVEN GRUZD

Hod Moyal pitched to potential investors in Illovo, Johannesburg, on Monday, in a talk titled “From Tel Aviv to Johannesburg: investing in the companies of the future.” The event was held in partnership with the Trade Mission of the Israeli Embassy.

Hod Moyal, who used to work at Goldman Sachs investment bank, said she started iAngels in 2014 because she “wanted to create a bridge between Israel and the rest of the world, based on technology”. The idea was to showcase what Israel could do, and to make business connections by fostering investment in Israeli hi-tech start-up businesses.

Companies that iAngels has previously funded include WSC Sports, which automatically compiles highlights of sports broadcasts for digital use; Arbe Robotics, which creates software for driverless cars; and Outdoorsy, which developed a market for the short-term use of recreational vehicles.

Hod Moyal dissected the source of Israel’s characterisation as the “Start-up Nation”, a term popularised by Dan Senor and Saul Singer in their 2009 book. She argued that there is a culture of survival in the tiny 71-year-old Middle Eastern state, built on thousands of years of Jews having to face hardship and persecution, surrounded by enemies and lacking natural resources. For example, Israel went from one of the most water-stressed countries in the world to becoming the leader in desalination, filtration, and water-management technology in a generation.

She spoke of how the Israeli army is a pipeline for talent, with top achievers identified in their teens and recruited into elite military units. The Israel Defense Forces teaches skills like flexibility and the ability to make the best decisions under pressure.

Israel has also benefited from a far-sighted government that has put in place policies that have allowed entrepreneurship to blossom and thrive.

And thrive it has. Hod Moyal said Israel has the world’s third largest technology ecosystem after the United States and China. Today, there are 30 companies worth more than $100 million (R1.4 billion) in Israel, and another 30 worth more than $1 billion (R14.5 billion). More than 300 multinational companies have a research and development centre in Israel. The country has generations of serial entrepreneurs who have started and sold many successful companies to the tech giants.

“We are now in the next phase of that innovation. The question now is how do we win, how do we prosper? We commercialise technology. It’s about getting from start-up to scale-up,” she said.

iAngels is a venture-capital firm that looks for a competitive edge in the companies in which it invests. They must have the potential to be sold profitably. “We look for companies with big vision,” Hod Moyal said. iAngels likes to invest early in a company’s life cycle, and often supports seasoned entrepreneurs with a track record. Identifying strong teams and ethical leaders is vital. It seeks companies that will make a positive global impact.

As these companies grow, iAngels helps to keep them grounded, offering “tailwinds, support, and wisdom” in a collaborative spirit, said Hod Moyal.

There are opportunities for South African investors to join counterparts from 45 countries to invest with iAngels in the companies of the future in diverse sectors from healthcare, the environment, and sustainable agriculture.

“I want Israel to be perceived as a good place to do business, a place seen as ethical, transparent, and doing good in the world,” Hod Moyal said.

When asked about South Africa’s political hostility to Israel, Hod Moyal said, “I can’t control what other people think. Nothing is black and white. It reminds me of the story of a man with a hole in his roof, who yells at the clouds to rain somewhere else, when he just needs to fix his roof. Focus on cleaning your own room, fixing your own roof.”