Cisco acquired its 11th Israeli company

1. “Israeli defense exports for 2012 are expected to show an increase, despite the global economic crisis…. Israeli defense exports for 2012 may cross the $7 billion line…. 10% to 15% higher than 2011 exports, though it will not match the peak of more than $7.5 billion recorded in 2010…. A substantial effort is currently under way to increase sales mainly in countries such as India and several other countries in Eastern Asia, South American countries, Australia, Africa and Canada, where Israeli defense exports have recorded a growth trend (IsraelDefense, Dec. 31, 2012).” Israel is ranked between fourth and sixth in the world for weapons sales. The US and Europe are Israel’s leading markets.

2. “Microsoft CEO Steve Ballmer said that even though there is only one Silicon Valley, ‘Israel is among the second tier of innovative places’ — akin to Microsoft’s hometown, Seattle…. Ballmer said that “the range of innovative things that Israel is doing is remarkable. There is such a wide scope of exciting things going on here. Israel is a start-up center, and there is always something to challenge us there, or one that we can acquire.’ A number of MS technologies are ‘Made in Israel,’ Weisfeld explained in a previous interview: These include Microsoft gateway VPN technology; Microsoft Security Essentials anti-virus suite; and the newest product, the recommendation system for Xbox systems…. Israel was the first Microsoft R&D center outside the US, which opened in 1991. Today, the company has centers around the world, but… there are only four places in the world where the R&D centers get involved in general and innovative projects: the US, China, India, and Israel (Time of Israel, Nov. 5, 2012).”

3. The Swiss-based Institute for Management Development (IMD) has ranked the Bank of Israel in the top five among central banks for its efficient functioning in its 2012 World Competitiveness Yearbook for the third year in a row. The report also ranked Israel’s economy 9th highest for its durability in the face of the global financial crisis (http://bit.ly/Xf6Cr9).

4. The $110BN Cisco acquired Israel’s IntuCell for $475MN, Cisco’s 11^th Israeli acquisition, including NDS which was acquired in March, 2012 for $5BN (Globes, January 24). Israel’s Keryx BioPharmaceuticals raised – on NASDAQ – $70MN, its 4^th IPO (Globes, Feb. 4). Israel’s MedGenics raised $29MN on NASDAQ (Globes, Feb. 11). DKPartners hedge fund joined York Private Equity, investing $55MN in Elbit Imaging bonds (January 24).

5. In 2012, 575 Israeli high-tech companies raised $1.92 billion from local and foreign investors, a 10 percent decrease from $2.14 billion raised by 545 companies in 2011 (Israel Venture Capital Research Center). The Georgia-based EndoChoice merged with Israel’s Peer Medical, raising $43MN in a round of private placement led by Sequoia Capital (MarketWire, January 4). Benchmark Capital, Battery Ventures and HPV Investment invested $16MN in Israel’s Panaya (Globes, Jan. 9). Sequoia Capital, Bessemer Venture Partners and Norwest Venture Partners invested $15NM in a round of private placement by Israel’s Ravello (Globes, Feb. 7). The NYC-based Millennium Technology Value Partners invested $12MN in Israel’s WatchDox (Globes, 31). Orbimed invested $8MN in Israel’s Medigus (Globes, Jan. 7). $5.5MN invested in Jonathan Medved’s OurCrowd (Globes, Feb. 7).

6. Israel’s natural gas potential. Jonathan Baron and Dr. David Wurmser, (Forbes, September 27, 2012): ”With in excess of 25 trillion cubic feet of natural gas discovered since 2009, Israel now enjoys historic opportunities to produce domestic, affordable, and secure energy…. Under any realistic scenario, Israel possesses ample supplies to ensure energy security in the power sector for a generation…. The well-established pattern of such development suggests that the natural gas discoveries to date represent only a fraction of the total recoverable resource. Based on other basins, current discoveries in the Israeli Levant Basin likely are only a fraction of the total technically recoverable resources…. “

7. Kinetic Energies – Alternative Electrical Energies, owned by Isaac Sutton, leads a 250MN Euro investment in the construction of 120 megawatt 50 wind-turbines in the Golan Heights (Globes, January 24).

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1^st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4^th quarter of 2020 and double the volume of the 1^st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
Israel is ranked 12^th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
In 2020, Israel was ranked 20^th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
Israel’s foreign exchange reserves-to-GDP ratio of 41% (3^rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

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