Tel Aviv, Israel – Tel Aviv has become a technological center where startups nurture the field of innovation and due to that potential, Intel is investing to reap good results and that other emerging markets, such as Mexico and Latin America, take advantage of its potential in the technology sector.
According to data from the National Center for Startups in Israel, 2021 was a record year for the technology landscape, as it raised more than 25.4 billion dollars, a figure that represented a 136% growth in capital investments compared to 2020 and also exceeded the average global increase of 71%.
In this sense, Zack Weisfeld, vice president and general manager of Intel Ignite -a corporate startup accelerator that was born in 2019 in Tel Aviv-, highlights that “there is a lot of disruption in startups in the world. A lot of the work that big companies have done came from startups or startup acquisitions.”
To enter this program, Weisfeld points out that it is not necessary for companies to be involved in an area similar to Intel’s, such as semiconductors, since it is about both companies interacting and learning from each other.
“We need to be connected with these creators and help them build the technologies of the future, in addition to both of us learning in the process,” explains the executive, who highlights that through this there is also a change in culture within startups.
Currently, Intel Ignite exists in only three cities in the world: Tel Aviv, in Israel; Munich, in Germany; and Boston, in the United States; however, the executive does not rule out that this effort expands to other cities that are technology centers.
Some of the fundamental characteristics that the company looks for in cities to invest in its startups is that there be “disruptive ecosystems” where the culture of risk occupies an important position and is combined with a talent base in the area, a community of investors and multinational companies interested in the project.
Regarding Mexico and Latin America, Weisfeld mentions that although they are emerging markets for the startup ecosystem, their growth is putting them in a more relevant position.
According to data from the Association for Private Capital Investment in Latin America, in 2021 Mexico ranked as the second most important market in the region with 159 offers that reached 3,571 million dollars only behind Brazil, where its 419 offers added 7,570 million dollars. “It’s great to see the growth, but it’s still not enough compared to other ecosystems. It takes time,” he points out.
These are the reasons behind Tel Aviv’s technological success
The analysis firm, Statista, points out that the startup market in Israel has used three elements for its growth: one is that the government is investing in subsidies for innovation, specifically in new companies and technology developments.
The second is that the technology sector is one of the most competitive in the country, with salaries that double the national average. In fact, it has become such an important center that it is already known by the nickname of Silicon Wadi (Silicon Valley, in Arabic).
And the third is that Israel is one of the countries that invests the most in technology research and development as part of its GDP, especially in relation to Artificial Intelligence, since in 2021 this sector had a financing of 4,690 million dollars.
An example of this panorama is the acquisitions that Intel has made through Ignite in recent times, such as the purchase of Granulate and Cnvrg.io, a couple of startups based on Artificial Intelligence to optimize workflows in companies.
Likewise, the company has invested in other applications of this technology in the service area, such as restaurants or surveillance, and when asked if these innovations are going to eliminate human jobs, Weisfeld mentions that it is not an issue that can be stopped; however, he concludes that “it is not that fewer people are working, but that they do it in different ways.”
