What is the position of Israel among the top startup-favoring countries?
Apart from being the storehouse with infinite offerings to travel enthusiasts, the gradual upcoming of Israel in the rank list of top startup-favoring countries added a gem to the nation’s achievement throne.
The country with a small population of only 8,594,876, is an emerging startup economy and has between 1,100 to 1,380 startups, established in the nation per year.
The startup investments in Israel achieved a milestone figure of $6.47 billion in the year 2018, where foreign investors were the leading players, especially the United States, China, and Europe.
Indian startup investors preferred staying away from tossing-to-heights the Israel startup investment figure further.
Even though Israel got its name imprinted in golden words as being one of the fastest-growing startup economies, yet investors in India did not get invoked for investing in Israeli startups.
The most intriguing question that arises here is why Indian investors did not show up much interest in investing in the startups of Israel?
How are Indian-Israel relationships?
India and Israel’s friend-knot are more tightened than ever, and both the countries are ever ready to overwhelmingly obtain mutual benefits in terms of business and economy.
The bond between the two countries is soaring heights, with both of them enjoying wise deals in delicate and important sectors.
Israel is a prime importer of robust defense technologies in India. Also, both nations coupled in performing joint researches in science and technology.
Why India is far below the list of investors for Israeli startups?
Neither the healthy Israel-India relationship nor the remarkable growth of startups in Israel spurted the interests of Indian investors to invest in Israeli startups.
Whereas the other nations are happy investors of the same, India, despite having a good startup economy, prefers staying out of the list of top investors in Israel startups.
In-house investments are easier to keep a watch over.
Based on this idea, Indian investors put forth the clause of investing in the corresponding startup branch, operational in India, and prefer maintaining a distance from the startup headquarters in Israel.
Being weaker in terms of resources and market experience, establishing a startup in a foreign country is highly unsafe and has a higher probability of failure. Ultimately, these endeavors are a no-no deal for the wiser.
Considering now the other investor nations, they find investing in the parent operational parts of Israeli startups, situated in the country itself, to be an opportunity market.
The foreign investors see the direct investment to be more reliable and assuring of yielding quality output, and also as a strong card in the long run, as many of the successful investments may turn out to be the in-house business partners and could re-direct the successful activities to the investor countries.
Indian deals are nullified, as the other foreign investments sound more lucrative, strong, and wiser. The clause that is expected by the Indian investors involves huge market risks. Owing to this, a successful deal is dissolved in a short term, as soon as the startups receive a better foreign investor without any such terms and conditions, who is ready to collaborate directly in the Israeli startups’ parent entity.
The non-interested attitude of India, the deal with a dangerous clause, and the breaking of startup treaties against healthy opportunistic alliances with other investor nations is a swift dodge of prey from the claws of the predator.