the Israeli model?

Filed in archive Venture Capital on October 13, 2004

Marc has this entry that describes the return of the "Israeli" model in start-up development:

"For years, the israeli start-ups have perfected the model of local (Hertzlia based...) R&D with US based headquarter. The model is now applied more and more to European (here a French example) start-ups. Meiosys whose software is designed to make a virtual version of a computer application and keep it running while it is transferred to another server just relocated from France To California and announced a new D round of funding of $7.5M."

If I'm allowed to make a prediction here - I think there is a good chance this will become a European model too. The 90s have shown it is very difficult to succeed n technology or internet markets if you sell primarily in your how countries. Most (or all) European nation states are equipped with a small (comparatively) home market, an overall less innovative buyer demographics (mobile phones are very different) and difficult access to venture capital. Northern European companies and Israeli companies had realized this in the end of the 80s mostly and followed a "two-roots" model. now some great companies from Europe will come along the same lines.