The Backbone of the Israeli Startups Ecosystem

The unacknowledged heroes 💪.

In my research on the Israeli startups landscape, I've observed three distinct layers of companies.

1️⃣ The "Royal Layer": These are the high-flying startups often in the spotlight. Founded by elite talent (graduates of prestigious universities, veterans of top IDF units, serial entrepreneurs), they attract significant funding from top-tier VCs.

2️⃣ The "Interference Layer": This layer, comprising the big majority of startups, often faces challenges such as lack of clear market fit, insufficient market validation, inadequate leadership and more.

3️⃣ The "Backbone Layer": This is where the real magic happens ✨. These startups, comprising an estimated 10% of the ecosystem, demonstrate a winning combination of realistic ambition, a strong team ethic, and a willingness to learn. They are the unsung heroes, often overlooked by the biggest funds, yet crucial for the long-term sustainability and innovation of the Israeli tech industry.

Checkout a post I published 5(!) years ago. Most of it is still relevant! https://lnkd.in/dazAAT5t

What are your experiences with startups in the "Backbone Layer"? Have you worked with them, invested in them, or encountered them in your career? Share your stories and insights in the comments below 🙌.