Israeli Tech Industry Suffers as Hamas Conflict Continues

A new survey reveals that the ongoing conflict between Israel and Hamas is severely affecting the Israeli tech industry. Conducted by the Israel Innovation Authority (IIA) and the Israeli Start-Up Nation Policy Institute (SNPI), the survey found that 80% of 507 Israeli high-tech firms surveyed have experienced adverse impacts due to the crisis.

Operational disruptions were cited as the most significant concern by 70% of the affected companies. These disruptions primarily stemmed from the emergency recruitment of key employees, who are also reservist soldiers, into the Israeli army. Furthermore, 27% of the surveyed firms reported facing a dual problem: damage to both human capital and financial resources. This includes delays or cancellations of investment agreements and challenges in reaching investors.

To mitigate the situation, the IIA announced last week a fast-track grant channel with an initial fund of 100 million shekels ($24.6 million) aimed at financially supporting struggling startups.

The IIA warns that the ongoing conflict endangers not only the innovative ecosystem but also threatens Israel’s economic stability.