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🇮🇱 Israel /Economy & Trade

Israeli VC on global shifts: 'The order that held for 80 years is gone'

From Jerusalem Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

In-depth Sources not specified Context piece
  • Israeli venture capital co-founder Yoni Heilbronn believes the post-World War II global order has collapsed, impacting industries like logistics and supply chains.
  • Heilbronn notes that despite public statements, European officials continue to place orders with Israeli tech companies, particularly in defense.
  • He cautions against viewing the defense tech surge as solely a durable need, citing long sales and development cycles and government procurement bottlenecks as challenges for startups.

The global order that has held for nearly 80 years since World War II is gone, taking globalization with it, according to Yoni Heilbronn, co-founder and managing partner of Tel Aviv-based venture fund IL Ventures. Heilbronn, speaking on the Jerusalem Post's Defense and Tech Podcast, explained that disruptions like tariffs, wars, or attacks on shipping can now rapidly reprice entire industries.

The order that held for almost 80 years after World War II is gone, he tells Ahronheim, adding that globalization went with it.

— Yoni HeilbronnDiscussing the collapse of the post-WWII global order and its impact on industries.

Despite public pronouncements from European officials, Heilbronn stated that behind the scenes, purchase orders continue to flow to Israeli companies, especially in the defense sector. He described a situation where a car's head unit could be hacked in Tel Aviv, leading directly into the manufacturer's corporate network.

A tariff, a war, or a few men in Yemen shooting at cargo ships can now reprice an entire industry in a week.

— Yoni HeilbronnExplaining the fragility of global supply chains.

Heilbronn expressed a nuanced view on the current surge in defense tech investment, calling it both a durable need and a bubble. He pointed to Germany's commitment of over $100 billion but highlighted the lengthy sales and development cycles, questioning the availability of enough integrators for venture funds to achieve profitable exits. Government procurement processes, he added, move too slowly for startups to survive.

European officials will say X, Y, and Z in public. Behind the scenes, the purchase orders keep arriving at Israeli companies.

— Yoni HeilbronnDescribing the disconnect between public statements and private business dealings concerning Israeli tech.

IL Ventures focuses on disruptive technologies for legacy industries such as logistics, smart manufacturing, robotics, and supply chain. Heilbronn also touched on trends like underground data centers, advised Israeli founders to look towards Mexico and Brazil instead of New York, and mentioned a portfolio company that ages whiskey in weeks on the Lebanese border. He concluded that opportunity often lies within every challenge.

Is the surge into defense tech a durable need or a bubble? Yes and yes.

— Yoni HeilbronnOn the current investment climate for defense technology.
DistantNews Editorial

Originally published by Jerusalem Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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