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🇮🇱 Israel /Economy & Trade

'Whether you like it or not': The market Israeli startups keep leaving on the table

From Jerusalem Post · () English

Summarized and contextualized by DistantNews.

At a glance

In-depth Named sources Context piece
  • Israeli startup founders often prioritize expanding to the US, a move that may cost them market share in Europe, according to venture capitalist Eran Westman.
  • Westman argues that mature Israeli companies naturally draw significant revenue from Europe, and the key is timely market entry before competitors establish dominance.
  • He asserts that Israel's status as a cybersecurity powerhouse ensures demand for its technology, even in countries not friendly to Jerusalem, as customers often separate politics from procurement.

Israeli startup founders frequently default to expanding into the United States, a reflexive choice that venture capitalist Eran Westman believes is costing them valuable opportunities. Westman, Managing Partner at Planven VC, suggests this focus overlooks the significant potential in European markets.

Westman, who has extensive experience in both the US and Asia, noted that mature Israeli companies eventually secure 30-40% of their revenue from Europe. The critical factor, he explained, is not whether they reach the European market, but whether they arrive before competitors solidify their positions. He highlighted that European enterprises are typically reluctant to switch vendors once a choice is made.

Addressing geopolitical concerns, Westman stated that Israel's reputation as a cybersecurity powerhouse is undeniable, "whether you like it or not." This perceived strength, he argued, is recognized even in capitals that are not aligned with Jerusalem. Westman believes that individual deals might face political hurdles, but customers generally distinguish between political sentiment and their procurement decisions.

He cited Planven's own successful exits, including Seraphic Security and Nozomi Networks, as evidence of the market's continued appetite for Israeli technology. Westman also shared tactical insights, explaining how founders can misjudge the European market by not offering local partners their due margins and by touring multiple Asian countries without establishing a memorable presence.

Israel is the cyber powerhouse 'whether you like it or not,' and that's understood even in capitals that are no friends of Jerusalem.

— Eran WestmanWestman's assertion about Israel's strong position in the global cybersecurity market.
DistantNews Editorial

Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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