Chinese investors are expected to be partners in half of the capital raised by Israeli venture capital funds in 2015 ■ WAWI and Fosun are already here, Alibaba, Baidu and Xiaomi will join ■ Israeli engineers will have to adapt to a new organizational culture
In recent years, new names are taking over the elite world of technology. Veteran names such as Microsoft, Motorola and Intel, and younger names like Google and Facebook, are joined by Alibaba, Baidu, Wawi and Xiaomi. In recent years, these companies have stormed Wall Street or have created tremendous value as private companies, on the basis of the tremendous economic potential of the country which produced all these companies – China. Similar to their rivals of Silicon Valley (and from the rest of the US) in previous decades, Chinese companies also understand that Israel, the smallest country in the Middle East, is an important stop in their continuing development.
Israeli high-tech industry predicts that this trend is just beginning, and that we will continue to see strengthening in the coming years. In terms of the domestic industry it is a great opportunity, along with the risks associated with it, and will change the mix of players that influence the scene. In terms of local entrepreneurs, there is a wider circle of potential investors, potential customers and potential buyers. A growing number of Israeli engineers will find themselves employed in Chinese companies with different corporate culture than they are used to.
Read more at www.haaretz.com