“We have come to realize our national and social responsibility to stand as a protective wall for democracy”
“We have come to realize our national and social responsibility to stand as a protective wall for democracy”
High-tech executives are urging an escalation in protests against the judicial overhaul as the coalition prepares to approve the abolishing of the reasonableness standard in court rulings, with a vote on the first hearing scheduled for Monday
"They raised their hands against the values that are most important to us and thought that we would remain silent and mind our own business. They were mistaken. Not this time. We will not turn the other cheek,” Erez Shachar, Managing Partner at Qumra Capital, told Calcalist. “Those who raise their hands against us will encounter a barrier that they cannot overcome. Those who undermine our values will encounter a united group of people, lovers of their country and patriots, who are willing to go to great lengths for what is dear to them. Bullying will be met with resistance."
Shachar is among several high-tech executives who are urging an escalation in protests against the judicial overhaul as the coalition prepares to approve the abolishing of the reasonableness standard in court rulings, with a vote on the first hearing scheduled for Monday.
According to Shachar, "The summer of 2023 is a decisive moment. Netanyahu and his allies are mistaken once again in gauging the determination of the majority and our willingness to make sacrifices when they attempt to strip away what is most precious to us. Netanyahu has formed an alliance with a group of extremists and has declared war on democratic institutions, disregarding high-tech, the economy, the reputation of Israel, and its citizens. The coalition of extremists including Levin, Rothman, Ben Gabir, and Smotrich, are waiting for an opportunity to seize more power - without separation of powers, without judicial oversight over any decision, while disregarding the clear majority of this wonderful nation that has taken to the streets to shout, 'This is unacceptable.'"
Shachar added, "We, the venture capital funds and high-tech companies, witness with concern Israel's disconnection from the global economy. Following a deep crisis in global high-tech and instability in the global economy, an impressive recovery began earlier this year. Nasdaq has experienced significant growth since the beginning of the year, while the Tel Aviv Stock Exchange lags behind. The field of artificial intelligence has revitalized Silicon Valley's investors, while in Israel, initial investments are dwindling due to the attempted judicial coup. If Israel does not step into the new playing field of artificial intelligence, we may lose our status as one of the most important high-tech centers in the world, which will benefit many other countries. The same qualities that were required for entrepreneurs to build remarkable companies are now being utilized to fight for this country: resilience, tenacity, resistance to pressure, and creativity. We employ these qualities to prevent the destruction of democracy. Israel will not become a dictatorship!"
Michal Tsur, Co-founder and President of Kultura, addressed a demonstration in Kaplan in Tel Aviv on Saturday, stating, "I haven't slept this week, neither has my husband Eran, who lost his father in the Yom Kippur War. We couldn't sleep while our son, serving in a special unit, fought in Jenin. During this week, when thousands of IDF soldiers, from both the right and left, religious and secular, fought united, the government of evaders continued to sow division and support unilateral legislation.
"I shed tears upon hearing that a soldier had lost his life in battle. However, at the same time, convicted criminal [Itamar] Ben Gvir (Minister of National Security] called for the police to beat protesters. Simultaneously, the evader and homophobe [MK Yitzhak] Pindros called to finish off the demonstrators, targeting us.
"I am a high-tech entrepreneur who grew up in a home that embraced both religious and secular values, Sephardic and Ashkenazi cultures. I have founded three companies, employing thousands of people and contributing tens of millions in tax revenue to the state. We have built the most remarkable high-tech industry in the world. Yet, what does the evader government do? It undermines the high-tech industry, leading us towards economic ruin. It weakens national resilience and dismantles the Zionist vision.
"The high-tech sector has propelled the country's economy forward over the past 20 years. With this attempted coup, we have come to realize our national and social responsibility to stand as a protective wall for democracy.
"The government aims to silence the gatekeepers, legalize corruption, and dismiss the Attorney General. This government does not desire a Jewish and democratic state. It does not want the State of Israel. Their intention is to establish the state of Chanamel (Dorfman) this week. I call upon my brothers and sisters in high-tech, industry, health services, the business sector, and the reserves. We bear a heavy responsibility. We are the last barrier before a dictatorship. If the government does not apply the brakes to their legislation, we will all go on strike and demonstrate this Tuesday. Dozens of high-tech companies will cease operations and protest at every intersection, in every city, throughout the entire country. Together, we will stand up to protect our children and safeguard democracy until this legislation is immediately halted."
Micha Kaufman, the founder and CEO of Fiverr, stated, "We cannot remain indifferent; this is a defining moment, and in years to come, we will ask ourselves where we were when it happened. History will judge us all. I still hope that the legislation to abolish reasonableness will not come to pass, but as things stand now, it will pass through three readings. That is why I call to protest. At Fiverr, we will allow all employees interested in demonstrating to do so. Israeli high-tech has been the country's shield for decades - we are the ultimate ambassadors of Israel in the world."
Kaufman has been actively involved in the protest since it started. According to him, the protest, which regained momentum over the past week, never truly diminished. Regarding the state of high-tech, Kaufman explains, "We closely monitor the data in high-tech, and it is deeply concerning. There is a false narrative that the decline in high-tech investments is a global trend, but that is nonsense. In the U.S. and Europe, high-tech investments have already increased in the second quarter, while in Israel, there is still a sharp decrease, as seen in the first quarter. The explanation that there are no AI startups in Israel and therefore no increase in investments is also incorrect. There are numerous AI startups in Israel, but Israeli high-tech professionals are preoccupied with survival and establishing fewer startups. We are missing the opportunity. Sixty percent of the companies that are founded are incorporated in the U.S., meaning that within three years, there will be no growth companies left here.
"The system of separation of powers is being dismantled here. The further the coalition proceeds with this legislation, the more the protests will intensify. People understand that a disaster is unfolding, and the more they face intimidation and pressure, the stronger their resistance will become."
According to serial investor Gigi Levy Weiss, "In recent days, we have witnessed radicalization and the gloves coming off by the government. A group of fanatics and extremists has taken control of Israel, leading it towards an economic and social abyss in an attempt to execute a regime coup. The attempt to pass the most extreme law to cancel reasonableness, eliminating any judicial oversight of government decisions, reveals their true intentions. The government promised that no legislation would be passed without broad agreements, yet once again, they have broken their promise and pushed Israel further towards the abyss.
"Ami Ashad's (outgoing Tel Aviv District Commander) recent severe statements confirmed what we already knew: There is an attempt here to bring about a regime change and violently suppress the legitimate and non-violent protest of millions of Israelis who have taken to the streets. The outcome, as we can already see from the numbers, will transform Israel into a backward country with a weakened high-tech sector, diminished investments, a low credit rating, a weakened shekel, and a high cost of living that will burden every citizen, regardless of their political stance. Those who care about this country and the future of their children, regardless of their political opinions, must tell the government, 'Enough!'"
Lior Aviram, Managing Partner of Shibolt & Co. law firm, stated, "Regarding reasonableness, one might mistakenly assume that its cancellation is just a small part of the issue, but it is a critical aspect. There is still time to fight against the subsequent steps, and perhaps the immediate damage will not be significant. However, if we use the analogy of slicing salami, the cancellation of reasonableness is not just a slice but the entire sausage. Reasonableness determines how decisions are made and effectively deprives judges of the tools they possess to prevent unreasonable judgments. The main tool available to citizens in their fight against unjust decisions is reasonableness. If we remove it from the hands of judges, it will no longer protect us, the citizens, that they might be independent."
Tal Barnoach, founder of Disruptive VC fund, was among the first to join the high-tech protest and has since become one of the central figures in the movement. He asserts, "This week will be highly challenging for all parties involved. The law will be passed, and the protest will do everything it can. The protest represents the frustration of the heart and soul of this nation, unwilling to witness its country collapse. Labeling me, my friends, and the high-tech community who actively protested as anarchists is an absolute delusion."
According to Barnoach, his fund continues to invest, albeit at a slower pace than before. He explains, "When I invest in early-stage companies, I also consider who will invest after me. If there are no more foreign investors here, who will take it further? Without investors, there will be no entrepreneurs willing to establish new companies. We have seen a decline to 400 new startups, compared to a previous record of 1,500 a few years ago. In a few more years, there will be no growth companies left here because new companies are not being established. If we continue on this trajectory, Israeli high-tech will regress to 2003, and it will be a tragedy."
Eyal Waldman, the founder of Mellanox, expressed, "We are facing a serious predicament. We have a messianic government aspiring towards dictatorship. We have ministers who are criminal offenders, prosecuted and arrested, making decisions. We witness the Shin Bet, Mossad, police, and army struggling to maintain stability in the face of the regime's oppression. The AG and the Governor of the Bank of Israel are also trying to uphold order, law, and justice. I am deeply concerned about what will happen when the current government appoints new heads to these institutions. The recent departure of Ashad clearly demonstrates their intentions. We see the effects of this government directly on the economy: the weakening dollar-shekel exchange rate, rising interest rates, high-tech companies beginning to relocate to the U.S., people leaving the country to avoid military service, and volunteer reservists dwindling. Budgets are allocated to areas unrelated to the country's development. Instead of professional appointments, we see appointments of friends and relatives.
"There is an attempt to dismantle the judicial system and Supreme Court, and the bar association is losing influence due to the victory of reform opponents. The government is going berserk, disregarding law and democracy, and rejecting acceptance of other sectors including Druze who serve in the army, LGBT+ community, Arabs, and foreigners. Living in Israel will become increasingly difficult for everyone in the coming period. We are a nation facing a severe crisis. Our task is to replace the government as quickly as possible, establishing a national unity government with Benny Gantz, Yair Lapid, and Avigdor Lieberman. In just six months, this government has caused significant damage. Repairing what has been destroyed will take millions of people decades. We need to be realistic and work with all parties, including the prime minister, to build a national unity government that will guide us safely."
Related articles:
- Shlomo Kramer warns against Israel becoming "full blown corrupt dictatorship", calls on employees to demonstrate
- "Innovation is a synonym for democracy. Freedom in Israel is essential for the success of high-tech"
- “The decline in new startups and the loss of trust from global investors will take several years to recover from”
Adam Fisher, Partner at Bessemer Venture Partners, explained, "With the elimination of reasonableness, we are witnessing a glimpse of what the future holds. We will see an increasing influence of politicians in our daily lives, making unreasonable decisions to rid themselves of people who disturb or annoy them. Gradually, we will become a highly corrupt country. This erosion will not happen overnight, but it will progress step by step. We will witness a slow wave of people leaving the country. Personally, I will not go anywhere, but I can envision a situation where my children will not stay and choose to depart. The situation in Israel is unique; it is not about left or right. It is a combination of ultra-Orthodox minorities, and settlers who have taken control of the Likud party. An entire group neglects core education and military service, bending the Likud's hand. They lack a true majority in the country, and the consequences for our nation are severe. The worst is yet to come."
First published: 11:31, 09.07.23
