Most of these companies are started by people out of the IDF's technology units. These are the same guys who are hacking Hizbollah's TV station, radio station, and cell phone network, pumping out Israeli propaganda messages (for whatever good that does).

They're pretty darn sharp, absolutely tops technically. The Russian influx also provided Israel with a tremendous base of very skilled very very highly educated engineers and scientists, who were often barred from senior roles in Russia due to having Jew on their id.

They usually hit the wall when they actually try to sell something, as their marketing efforts and approach pretty much suck. So after creating something great and some minor sales, they end up having to tie up or sell out to an American firm who can actually market and has solid distribution channels.
Akiva | Homepage | 08.09.06 - 12:06 pm | #

Actually, there has been criticism here of many of the aforementioned entrepreneurs. The usual dream in Israel is to make big bucks and then run away with it. So people are happy to set up a company, float it on the stock market and make more money and/or then sell it lock, stock and barrel for even more money. As quickly as possible. And then set up another company. (Some of these companies turn out to be scams and can't produce profits for nuts.)

This way, while some individuals make really big bucks fast, the country and the society fail to build a strong and diversified economic foundation for the future. Imagine if Carnegie, Ford and Edison had sold their ideas and businesses after 2-3 years to, say, Britain a century ago. Where would America be today?

Israeli comany Comverse got into the news today with the arrest of it's 3 top officers in a stock options and money laundering scam. The FBI has seized tens of millions of dollars in this story. Make a fast buck, screw someone else, and run away. If you can.

See:
http://news.google.com/news?hl=e...rse&sa=N& tab=wn

[Other (non-Israeli) companies are also being investigated in option irregularities.]

So it's not that they have to sell because they can't market, but rather that they WANT to give up control of the business and run with the money. And then repeat the performance later.

Mind you, many of these companies come up with terrific ideas and products. The foreign investors who buy them aren't stupid, you know. But Israeli owners don't think in terms of dynasty or Yerusha or making it really big (like, say, Teva). They just wanna buy a Porsche and a yacht that they don't have a clue how to operate and brag about how smart they are for making all that money and making the other guy the 'freier'. MONEY = BRAINS, right?
Jake in Jerusalem | 08.09.06 - 7:25 pm | #