Many readers who know the genesis of the Israeli VC community will understand that the match that lit the VC fire was an Israeli government program called
Yozma (check out the presentation - it is worth a read) which seeded venture capital funds. This kick-started the entrepreneurial fervor that is now Israeli lore and was one of the smartest government interventions in Israel and maybe the world at the time.
On my recent post on
Gigaom entitled
Israel 2.0, I stated:
"Israel 2.0 is all about broadband, and broadband driven innovation.
Despite being a tiny country, Israel ranks ninth in terms of broadband penetration. Although speeds are limited to 2 Mbps, Israel is obsessed with news and connectivity to the outside world, Israelis spend more time online than any other country on a per capita basis (link to Ynet article in Hebrew).
This Broadband penetration is critical to IsraelÂs continued success in the web infrastructure and content world. Because if you can touch it and experience it, then you can build it. If you can sense what users want as a user then you can develop it. "
I am convinced this is true and my convictions became stronger when I read
this Business 2.0 article on Korea's investment in broadband. see this excerpt from the article.
"South Korea has become the world's best laboratory for broadband services - and a place to look to for answers on how the Internet business may evolve. Smart bet on broadband
How did this come about? In 1995, the South Korean government made what must rank as one of the most shrewd and far-sighted investments in business history. It spent big on a nationwide high-capacity broadband network that any telecom operator could offer service on, and offered subsidies so that 45 million Koreans could buy cheap PC's. Cost: a mere $1.5 billion.
Fast-forward 11 years: Korea is now the most connected and Net-addicted country on Earth. There are a few American companies who have benefited from the South Korean broadband boom: Blizzard, for example, makes a popular online game called Starcraft which is so widely....
...Most importantly, Cyworld is a license to print money. The service itself is free (and available on cellphones as well as online), but to buy all the extras - like ringtones and virtual furnishings - will cost you "acorns," the service's virtual currency. Cyworld sells its users $300,000 in acorns every single day."
This proves the thesis that "if you use it, you can build it" and make money at it. Online businesses are to 2006 what
Makolets (corner grocery stores) were in the 1950s. It is where small businesses can start up and many people can earn a better than decent living plying their wares and talents online (see this
previous post entitled Broadband is the Solution to unemployment on people earning livings on
Secondlife (
Benchmark company).
I have
suggested previously that the Israeli government needs to invest in broadband in a big way. Like Korea, it should be a national imperative to invest in a super high speed network that connects all Israelis. This will generate jobs at a tiny cost to the taxpayer. Korea invested $1.5 billion for 45 million people to be connected and have a subsidized computer. With only 6 million citizens, Israel should be able to do it for under $200 million.
So what are we waiting for?
I would like to put in a request for an article in a future blog. Can you address the challenges you face being a frum (Orthodox) Jew in the business world and how you react to them; such as: wearing a yarmulke when overseas, shaking a woman's hand, meetings in non-kosher restaurants... and any tips for young college graduates going into the business world for the first time.
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