© Reuters.
The Israeli tech sector, a key economic driver accounting for approximately 15% of all jobs, is grappling with significant disruption following the unexpected conflict with Hamas. Thousands of tech workers, including high-profile CEOs such as Or Bokobza of Venn, Amitai Ratzon of Pentera, and Yevgeny Dibrov of Armis, have been called up for military service as part of the country’s 360,000 reservists. This has resulted in a workforce reduction of 10-15% in the tech sector, presenting an unprecedented challenge as the nation prepares for potential ground operations in Gaza.
In response to the ongoing conflict, corporations such as Intel (NASDAQ:) and venture capital firms like Cyberstarts and Target Global are adapting by shifting operations and providing employee support. Team8, led by Nadav Zafrir and linked with Israel’s elite signals intelligence unit 8200, is assisting government efforts to locate hostages using technology. Group 11 is organizing donations for the war effort.
Over 300 venture firms have expressed support for Israel amid the crisis. However, a prolonged conflict could deter foreign investors who significantly contributed to the $5.5 billion in total venture capital raised in 2023. This presents a potential risk to the future growth and stability of the Israeli tech sector.
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