Startup Lessons from Israel

STARTUP INDIA STANDUP INDIA flagship project of Indian government announced by

Prime minister Shri Narendra Modi gives Indian youth an opportunity to establish
themselves as young entrepreneurs. However, India lacks a lot when it comes to supporting
the next generation entrepreneurs. While reading an article on the tube regarding promotion
of young businessmen I got to know the insights into the start-up culture in Israel. A lot can
be learnt from Israel in terms of start-ups, growth in agriculture & defence. Almost two start-
up companies flourish every day. In terms of these Israeli Indian start-up culture has just
blossomed. India has a long way to go.

One such Industry is the mushroom making, mushrooms find it hard to grow in the dry
environment of Israel but start-ups mushroom all over, in garages, in office buildings, in
basements of university cafeteria; in this sanctified land, it is hard to cast a stone that may
not hit a start-up somewhere. Jerusalem Venture Partners (JVP) is rated as one of the best in
the world as Venture capital fund who nurtures and grows infant ideas and it now has $900
million and more assets under its management. Today JVP Cyber labs is working on cyber
security which still is untapped market. Smart phones are vulnerable to open Wi-Fi
connections, data and identity theft can occur in open networks very easily. The said
company is working on the same. JVP is also working on how to make mobile data
communication safer. Mobile wallets payment method is yet to catch up in India, but with
the extensive seeding of Aadhar numbers and once they get linked to bank accounts and the
direct transfer of benefits becomes common, at that point cyber security of smart phones and
anti-hacking software will have to be put in place by all and sundry.
But the real question is what gives Israel the edge? The answer to the question is its
CULTURE. How do we peruse failure is the real crux of how you create a great empire? In
Israel, the entrepreneurs who have failed are not looked down upon but they are looked as
people who have gained from their experience. Israeli government organises a road show
what it calls 'Start Tel Aviv'. This global event brings together start-ups from different
countries to take part in an intense, five-day start-up experience. Through its human
resources Israel generates more start-ups than any another developed nation. Israeli
government has set-up companies/special purpose vehicles which give approximately
$600000 risk free loan to promising start-ups. If the start-up fails the company do not need
to pay a single dollar, however if the same prospers the company must pay a royalty at a
certain percentage.
In India, the said culture differs a lot. Most of the talented youth who pass out of IITs, IIMs,
other B schools or reputed institutes are eager to be employees of big firms and materialistic
for opportunities in the west, rather than creating an innovative business. Soaps in annual
budget do not make the innovation prosper, rather its the outlook of the masses regarding
the business community. In India business community is viewed with negative mindset. If a
company fails there is a list of government agencies to haunt the industrialist, from CBI to
bankers and especially media everyone looks up to you with a doubting eye. Yes, there are
exceptions, some are genuinely notorious. If the said start-up programme in India must
succeed the country needs to change its outlook regards to how we peruse failure. There are
considerable start-ups in India some have made it big while some have doomed. Many start-
ups have blossomed in technology industry in last 2 years but still we have a long way to go.
We have always focused and criticized the doomed rather than boosting the confidence they
need. The phoenix must burn itself to emerge.

Read more at:

http://economictimes.indiatimes.com/articleshow/48729881.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst