A surprise in Israeli high-tech: The unusual data of Haredi startups
While the entire industry is dealing with a complex slowdown in investments, the BizLabs program reveals exceptional data on an unusual survival rate of 93% and the raising of tens of millions of dollars.
While the Israeli high-tech industry is dealing with a complex period and a slowdown in investments, the field of Haredi startups is showing impressive data. Seven years of activity of the BizLabs program, which promotes Haredi entrepreneurs, point to significant growth, high survival rates, and expansion into international markets.
Since the program's establishment in 2019, 53 Haredi startups have passed through it and together raised more than 62.4 million dollars. According to the program's data, about half of the companies are currently active in international markets, including the USA, Europe, and Japan. In addition, the survival rate of the companies one year after completing the program stands at 93 percent, an unusual figure compared to past data in the field.
The data was revealed during the graduation event of the seventh cycle of BizLabs, where eight companies presented their ventures to investors, senior high-tech industry figures, and business partners. The companies that operated in the last cycle dealt with fields such as artificial intelligence (AI), digital health, fintech, e-commerce, and software solutions for businesses.
During the six months of the last program, an increase of 162 percent was recorded in the value of the participating companies, which rose from 920 thousand dollars to 2.4 million dollars. Five out of the eight companies have already reached the stage where they generate revenue.
According to the program's organizers, the goal is to create a full path for Haredi entrepreneurs, starting from the exposure and initial training stage to accompanying companies in growth and connecting them to investors. As part of the activity, events were held in which hundreds of people participated, as well as preparation programs for entrepreneurs and meetings with investors from Israel and abroad.
Hanan Brand, VP of the Israel Innovation Authority, addressed the state of the high-tech industry at the event and noted that integrating new populations, including the Haredi society, is a significant need for the continued growth of the industry. According to him, even the AI revolution does not pose a threat to the industry but rather an opportunity to accelerate it.
The data indicates that Haredi entrepreneurship has become a more significant player in the world of technology in recent years, with companies that succeed in raising investments, operating in international markets, and presenting high success rates.
