Tech TLVHigh-tech must triumph over the kakistocracy
Tech TLV
High-tech must triumph over the kakistocracy
2025 presents a dual challenge: globally, to promote Israeli high-tech in the face of critics and anti-Semitism; domestically, to counter the severe damage caused by a dysfunctional government. Opening remarks by Calcalist's publisher at the Tech TLV conference.
The year 2024, which ended just two weeks ago, posed immense challenges for Israeli high-tech. The sector faced the daunting task of overcoming investor and customer fears stemming from the attempt to implement a judicial overhaul and uncertainty caused by the government in 2023, as well as the aftermath of the devastating events of October 2023. During this period, Israel was embroiled in a severe war and confronted waves of international criticism, hatred, and anti-Semitism, which deterred many from doing business with the country. Israeli high-tech had to work tirelessly to demonstrate its resilience and strength.
2024 was arguably the most challenging year for Israeli high-tech since it became the driving force of the economy. Companies faced numerous difficulties, including prolonged reserve duty, significant budget cuts, reduced valuations in fundraising, and the relocation of some activities abroad. Most importantly, they had to convince the world that "We Deliver – No Matter What" was more than just a slogan.
Now, as we reflect on the past year, there is room for some satisfaction. Israeli high-tech did not collapse. Investors, while not all, gradually returned, recognizing that Israel, despite the massacre on October 7 and the shock, managed to recover and even shift the balance of power in the Middle East in its favor. The pessimistic rhetoric, such as "We don’t want to invest in a country that might not exist in a few years," has become less common following the defeat of Hezbollah and Iran’s setbacks, as well as the disintegration of Assad’s Syria.
Despite this recovery, Israeli high-tech continues to contend with international criticism, waves of anti-Semitism, and both overt and tacit boycotts in parts of Europe. However, there is room for cautious optimism and hope that 2025 will be a good year for Israeli high-tech and that it will see growth in key markets, particularly in the U.S. and other regions.
Yet, Israeli high-tech operates within the confines of Israel’s most dangerous and dysfunctional government since the country’s founding. This government is not a caricature but a kakistocracy—the rule of the worst— and has inflicted heavy and intolerable damage on the nation. That is why Israeli high-tech can not settle for just having its reputation restored globally.
The warning signs are clear: if the government continues to dismantle and corrupt democratic values and institutions, quash the justice system, foster ignorance by neglecting core studies, and encourage draft evasion, Israel’s high-tech ecosystem will falter. Third world countries, with crippled democracies and broken ecosystems, don’t create thriving technology sectors and businesses. Therefore, those who wish to sustain the momentum of Israeli high-tech must confront these realities.
In January 2023, high-tech professionals stepped out of their bubble to protect democracy. In October 2023, they mobilized for the defense of their homeland. Israeli high-tech knows it must also protect the very fabric of the nation surrounding the startup ecosystem. This responsibility cannot be left to the kakistos in government and the Knesset.
The challenge for 2025 is twofold. Globally, Israeli high-tech must continue to promote its innovation and technology. Domestically, it must drive the demand for new, responsible leadership. High-tech must not only power the economy but also become the engine of a better Israel.
I already know there is no need to motivate you. You have proven that you understand your vital role. Calcalist stands with you in this effort to bring Israel the leadership it deserves, and in the fight for the identity and values of the country. This is not just a mission; it is a matter of survival.
Yoel Esteron is Calcalist's publisher and co-founder of Shomrim.
