Israel’s technology sector, crucial to the country’s economy and accounting for almost half of its exports, has been closing ranks since the start of the conflict with Hamas, with many start-ups trying to help the civilian population.
Eran Orr, CEO of Israeli-American start-up XRHealth, rushed back to Israel following the attack launched by Hamas on October 7 that triggered a war that has already killed thousands of civilians in Israel and Gaza.
His company, founded in 2016, develops virtual reality headsets for therapeutic purposes. It has just offered hundreds of them to hospitals in Israel to help survivors suffering from post-traumatic stress because “there is an urgent need and there aren’t enough mental health specialists,” explains Eran Orr, reached by phone by AFP.
“We’re trying to get donations to deploy these solutions to the people who require them, including in their homes,” pleads the entrepreneur, who is seeking $3 million to “equip 2,000 homes directly affected by the attacks”.
Examples are multiplying in a country that boasts at least 7,500 technology companies, according to Start-Up Nation Central (SNC), an Israeli NGO that connects investors and start-ups.
Last year, the technology sector accounted for 18% of the country’s GDP, 14% of the employed population, and 48% of exports ($71 billion). From software development to microchip production, all the major international players are present in the country, attracted by this rich ecosystem.
But, as Avi Hasson of SNC points out, funding for start-ups has sharply declined worldwide recently against the economic slowdown. Current events “certainly pose a challenge to companies,” but “I doubt there is a single investor who has not taken this factor into account when investing in Israel,” he argues.
Foreign investment was already impacted a few months ago when a controversial judicial reform demoralized confidence in the country’s economy.
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“We’re using the power of tech to help the country, for example, by quickly creating platforms where people can make donations for those in need,” agrees Merav Bahat, co-founder of the cybersecurity company Dazz who has no news of her husband’s cousin. He was one of the 200 or so people kidnapped in Israel by Hamas on October 7.
Wix, a major Israeli website creation platform, is part of a group of start-ups that, in just a few days, has put together an initiative to link the technological community with the population’s needs, 290 Israeli companies have already volunteered. Among the requests was the implementation of virtual panic buttons to accelerate the process of calling the security forces, Wix details in an e-mail to AFP.
At Trullion, an AI-assisted accounting company, “10% of the workforce is called up.” “Most are on active military duty and are right on the border, near Gaza and to the north, near Lebanon,” detailed CEO Isaac Heller, who moved to Israel with his family five years ago. “We check in with them every day.”
Presenting its quarterly results on Thursday evening, US chip giant Intel made it clear from the outset that its plant in Israel was still open.
“I’m not afraid for the technology sector. I’m afraid of the humanitarian crisis that’s unfolding. One concerns over 200 hostages held by Hamas, the second concerns the Palestinian people of Gaza,” sighs Isaac Heller.
Gabriela De La Cruz, with AFP
