Photo Courtesy of Lilach Amit-Holzer
Business 01 February 2018
In recent years, Israel has secured its position as the “Startup Nation," functioning as one of the world's most developed technological epicenters. Having established a distinctive high-tech ecosystem, Israel, a country with a population of only eight million, continues to celebrate its innovative capacity with one of the largest density of startups globally.
Numerically, Tel Aviv ranked number six in the Global Startup Ecosystem Report of 2017, with an estimated 3,000 startups active across Israel as of last year, around half of which are located in Tel Aviv. The country, with a per capita investment more than double that of the US, has founded a number of the world's most in demand products including Waze, Gett and Fiverr.com.
What's contributed to its phenomenal growth in the high-tech field? In the book Start-Up Nation, authors Dan Senor and Saul Singer identify the country's level of entrepreneurship as a product of "…the tight proximity of great universities, large companies, startups and the ecosystem that connects them - including everything from suppliers, an engineering talent pool and venture capital." They also address other crucial factors including strong team work, willingness to resource share and the determination of startups to dream big within small realms. Alongside this, a solid integrated framework of accelerators, incubators and co-working hubs provide the space and support to nurture current and future talent.
Women in High-Tech
In the 2015 Global Startup Ecosystem Ranking, Tel Aviv placed as the 5th city with the highest percentage of businesses founded by women. Standing at 20 percent, hovering two percent above the global average, Israel's development of equal opportunities and support for women in the field has played a vital role in this statistic.
One of the more prominent establishments is Yazamiyot (Hebrew for “female entrepreneurs"), a community launched in 2012 by entrepreneur Hilla Ovil Brenner with the goal to empower and supporting women working within the high-tech, bio-tech and innovation fields. “We are the leading community for Israeli female entrepreneurs to meet, network, learn and help each other, and our vision is to dramatically increase the presence of women entrepreneurs across these industries in the next few years," says Co-Founder and COO Shiran Melamdovsky. “In Tel Aviv, there is much awareness as to the gender gap, but our community aims to combat this by creating great collaborations and opportunities."
Yazamiyot cooperates with Google Tel Aviv on Google Campus for Moms, a program designed to empower new mothers to pursue entrepreneurial roles, as well as working alongside other initiatives including Microsoft Accelerator, Rise – Barclays innovation program, WIX and the US Embassy as a way of presenting accelerated entrepreneurial programs to women. “This awareness has contributed to a small increase, but women still find themselves in rooms full of men," states Melamdovsky. “Only a few women reach senior managerial positions and there are not enough mentors and role models for women to emulate. The shortage is already starting from junior management positions like team leaders."
Yet, despite the under-representation of women in technological fields globally, Tel Aviv is moving in the right direction to provide growth opportunities for women. The city ranked 24th out of 50 on the Dell Global Women Entrepreneur Cities Rankings 2017, based on characteristics and factors including programs, local policies, capital, talent, technology and culture. The last few years have seen a substantial leap in the number of female entrepreneurs spearheading startups in Israel, in addition to an increased presence of women working in venture capital and investment firms.
Making an Impact
Other establishments are succeeding in their facilitation as a springboard for women in business, to offer support, insight and networking opportunities across Israel. From Women in Wireless, established in 2015 to “…connect, inspire and empower female leaders in the mobile and digital space," and WMN, a co-working space and ecosystem for women led ventures; to Let's Get to 51 percent, a platform for female entrepreneurs to connect with industry high-tech professionals, and Women of Startup Nation (WOSN), an online community founded by Barr Yaron which documents the success stories of women in the field of high tech, a wave of cultural support for female-led initiatives is gaining momentum.
What's more, Israel has produced some remarkable female talent: Yasmin Lukatz, founder of the Israel Collaboration Network (ICON), an organization linking selected Israeli entrepreneurs with venture capitalists and key connections in Silicon Valley; Dr Kira Radinsky, now eBay Israel Chief Scientist, who sold her consumer analytics company SalesPredict to eBay for millions of dollars; and Maxine Fassberg, whose 30 plus years at Intel-Israel, the last decade of which she served as general manager, saw the company's export profits increase by over $1.16 billion within three years.
Whilst the figure hovers at around three percent of entrepreneurs in Israel as female, the crack in the glass ceiling is materializing as more women step into top tier positions - trailblazers of their time, paving the way for others to boldly follow suit.
Female-led Startups on the Rise
At the crux, the issue of success in the field is centered around the support and opportunities for female entrepreneurs to secure funds. “The demand from VCs and investors for women-led startups is increasing, as more women-led businesses around the world show increased results and higher ROI," states Melamdovsky. “There are thousands of women in Israel and hundreds of thousands worldwide that have the ideas, skills, and experience to establish and lead successful and global companies, with the right support and mentorship."
The success stories are trickling in, with more than a handful of Israeli founded female-led startups making their presence known internationally:
Feelter - Founded by Smadar Landau in 2014 as a plugin for ecommerce, utilizing social media content to help increase website conversion rates. It was voted by Inc. as one of the 20 Israeli Startups to watch in 2017 and won first place in the 2016 G-Startup Worldwide competition.
Missbeez - led by co-founder Maya Gura as a mobile marketplace for beauty services matching busy women with self-employed professionals. The startup has so far raised more than $5 M.
Sidekix - an urban discovery app, co-founded by Jenny Drezin, which provides interest based routes across categories including shopping, culture and nightlife. The app has had half a million global downloads since its launch in 2016 and has secured over $2 M in funding to date.
Shupperz - led by Tal Rubinstein, is a worldwide social network of skilled shoppers that enables anyone to shop like a local. This first-of-its-kind social platform is said to be the next big thing in retail innovation. The company has so far raised over $4 M.
From Your Site Articles
3 Min Read
I think we can all agree that we are living in unprecedented times, and many of us are experiencing challenges in both our personal and professional lives. But it is important to remember that often, challenging moments present opportunities for change. Right now, companies and individuals are using this time to rethink how they conduct their business, the resources critical to their success, and how they go about their daily activities. And what we are seeing is that more and more people, especially women, are taking control of their lives by starting their own businesses.
While it is estimated that the number of women-owned businesses is one-quarter to one-third of all enterprises worldwide, there are still many women who aspire to make entrepreneurship a reality. A new Herbalife Nutrition survey conducted by OnePoll of 9,000 women across 15 countries, including 2,000 women in the U.S., found that globally, 72% of women want to open their own business. Of those, 50% don't yet have a business and 22% have one but would like to open another.
Women want to have more control over their future, but they are committed to helping future generations by being a role model for younger women; 80% believe this is a strong motivating factor.
The second annual survey, which explores women and entrepreneurship globally, revealed the overwhelming challenges women experience in the traditional workplace compared to their male colleagues. In fact, more than 60% of women said they would like to start a business due to unfair treatment in previous job roles. Of the women surveyed, 7 in 10 believe that women must work harder to have the same opportunities as men in the workforce. Results also revealed that 43% of women have delayed having children because they thought it would negatively affect their career, and 25% said they had faced pregnancy discrimination. 42% believe they've been unfairly overlooked for a raise or promotion because of their gender — and of those, the average respondents had it happen three separate times. These are a few of the challenges that have been a catalyst for the surge in entrepreneurship among women.
The irony is that startups founded and cofounded by women performed better than their men counterparts: on average women-owned firms generated 10% higher cumulative revenue over five years, compared with men.
With the barriers and negative experiences women cited in the workforce, it is not surprising that across the globe, the top motivation for starting a business is to run it themselves (61%). Women want to have more control over their future, but they are committed to helping future generations by being a role model for younger women; 80% believe this is a strong motivating factor.
But the women surveyed don't expect entrepreneurship to be smooth sailing: one-third of women with plans for entrepreneurship are "very worried" about their business — or future business — failing in the next five years. The top three challenges when starting a business center around finances — earning enough money to offset costs, having enough budget to grow, and financing their business. And when it comes to financing, women face stark disparities in the capital they often need to fund their business. Boston Consulting Group found that women entrepreneurs averaged $935,000 in investments, which is less than half the average of $2.1 million invested in companies founded by men entrepreneurs. The irony is that startups founded and cofounded by women performed better than their men counterparts: on average women-owned firms generated 10% higher cumulative revenue over five years, compared with men.
Women entrepreneurs create a source of income for themselves and their families. They are a vital part of our world's economic engine that society needs to support with flexible opportunities, mentorship, and access to capital. Herbalife Nutrition is proud that more than half of our independent distributors worldwide are women who set up their businesses and decide when and where they work and do so on their terms. We need to invest in women entrepreneurs, not only to help one generation, but to offer role models for the next.