israel tech sector

The collapse of Silicon Valley Bank had extreme ramifications: as the second largest banking failure since 2008, and the second largest bank to ever fail in the US, the effects were felt around the world.

One country that has been particularly impacted is Israel, and the country’s leadership has been forced to consider measures to prevent such a situation wreaking such havoc in the country again.

Israel tech sector feels the strain

Israel’s economy has a large tech component thanks to a variety of factors, including the country’s historic ties with the United States.

According to Benjamin Netanyahu, the Israeli tech sector is one of the most advanced in the world, and their highly educated workforce means that they are export significant amounts of software and hardware to the rest of the world.

SVB was particularly interested in the startup arena, and the “Startup Nation” inevitably was affected by much of the fallout when one of the main lenders had gone underwater.

Israeli considers new legislation

The Israeli government has been mulling over new legislation, which would put in place significantly more restrictions in the tech and startup sector, with the goal of protecting investors and depositors.

However, there are many people who are opposed to these new laws, as they believe that it would make it more difficult to invest in Israel in the future.

As such, there are already a series of major companies who have stated that if the law passes they will be required to withdraw their investments from the country.

More than half of the country’s startups held their assets as Silicon Valley Bank, which included over 7,000 companies, many of which were unicorns.

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