The open letter published on Thursday is the latest effort by startup investors to provide support for the state of Israel and its tech community, with 221 firms signed on.
Over 220 venture capital firms have signed a joint statement expressing support for Israel and calling for the global investor community to support the tech ecosystem in the country, which accounts for nearly 20% of its gross domestic product.
VC firms such as Bain Capital Ventures, Bessemer Venture Partners, GGV Capital and 8VC were among those that had signed by Thursday morning, joining a group of early contributors including Aliavia Ventures and irrvrntVC.
In the letter, the firms, mostly based in the U.S., agreed to “stand united” in support of Israel, its people and tech community, which it noted had long been a partner to the global “innovation ecosystem.” It condemned “senseless and barbaric acts of terrorism,” saying the signatories “bear witness to the devastation they’ve wrought” and deploring the loss of innocent lives. The statement went on to call for the return of hostages and normalcy for Israel’s startup community.
The joint statement comes amid a nearly weeklong stretch of historic violence that saw more than 1,200 Israelis killed in terror attacks perpetrated by Hamas, thousands of others displaced, and dozens reportedly held hostage in Gaza. Another reported 1,100 Palestinians have been killed in retaliatory strikes there so far.
“In the spirit of peace and unity, we encourage the global venture community to support and engage with Israeli startups, entrepreneurs and investors as they navigate through these challenging times,” the statement said. “We believe in a brighter and more prosperous future for the region. Will continue to enable the talented entrepreneurs and startups in Israel and abroad to continue their vital work in shaping a better future for all.”
The signatories are far from an exhaustive list of U.S. firms that spoke out publicly on the tragic recent events in Israel. Earlier this week, Insight Partners pledged to donate $1 million to humanitarian aid, while General Catalyst pledged $250,000 and the partners at First Round announced they had personally contributed $500,000, among others. Others set up public fundraisers, such as a page by Vine Ventures (which also signed the statement) that had raised nearly $200,000 as Thursday, or co-hosted fundraising events.
Local Israel-based investors and firms, meanwhile, have participated in recent events first-hand. Aleph partner Michael Eisenberg, a Midas List Europe fixture, posted on X, formerly known as Twitter, about working the phone despite the Sabbath in his role as chairman of civic organization Shomer Hachadash, which organized veterans to drive south to protect farms from further attacks; more recently, Eisenberg said he was leading fundraising efforts while helping to bury a cousin killed in duty in the week’s fighting. About 15% of startup staff across 1,000 companies surveyed by local firm Entrée Capital are currently serving or volunteering full-time, said fellow Midas Lister Avi Eyal — including investors, who have also been called up. “There are countless examples,” he said. “There’s an almost unstated commitment to help out.”
By comparison, a public statement might not seem as directly impactful. Israel-based investors told Forbes they welcomed their U.S. peers speaking up if it meant they continued to do business in the country as usual. (Some Israel-based firms, or firms with presences in the country, were among the signatories.) Ultimately, they said, the most important thing for local startups and the country’s economy is that global VCs keep doing deals in Israel — and the joint statement seems a positive indicator. “Just from a psychological perspective, I think it helps to see the reaction,” said Yuval Ariav, managing partner at Symbol.
The letter’s origins date to Monday night, when Harry Valner, cofounder of U.S. venture firm Seaside Ventures and an active participant in a WhatsApp group of several hundred Jewish venture capitalists, felt inspired to rally other investors behind a collective statement, he said in an interview from Los Angeles. Many firms that spoke up had already been compiled in a Notion document maintained by that startup’s Tel Aviv-based head of community, Ben Lang — but Valner believed that a co-signed open letter similar to one published during the Silicon Valley Bank crisis might help more firms participate. Back in March, nearly 700 firms eventually signed that statement of support organized by the venture firm General Catalyst.
By Tuesday, Valner shared a letter building on the SVB statement template with a small number of other investors, who began circulating a corresponding signature form obtained by Forbes on Wednesday. The number of signatures reached 107 firms by midnight ET, and 221 by noon on Thursday just twelve hours later, when the group went public.
“At the end of the day, the goal is to drive awareness,” said Valner, who added he and others were disturbed by their sense of rising global anti-semitism. “There’s a very special group of funds globally who realize this and are willing to speak up, because it’s not okay.”
In an unstable and rapidly shifting situation, during one of the largest military mobilizations in Israel’s history, signatures and social media posts may only go so far. In addition to the SVB crisis, VC firms and corporations have posted in the past about a number of subjects, from the war in Ukraine to the Black Lives Matter movement, with uncertain lasting results. At irrvrntVC, partner Andrew Gluck said he remembered watching businesses decide how to comment on those protests that followed the murder of George Floyd in 2020, and wondering his place to comment as a white, Jewish man. He spoke to others in his network who felt more personally connected to understand how best to support, he said.
Now, he hoped that more firms would continue to sign the statement in support of Israel in upcoming days, without feeling pressured or shamed. “I think we are inviting whoever feels comfortable to sign this,” Gluck added.
Read the full article here
