Foreign investors see higher risk in innovative Israeli startups due to information gaps
Updated
Updated · Ynetnews · May 1
Foreign investors see higher risk in innovative Israeli startups due to information gaps
8 articles · Updated · Ynetnews · May 1
The Journal of Business Strategy study by Peres Academic Center researcher Dr Eliran Solodoha surveyed 151 investors, including 64 Americans and 87 Israelis, assessing an Israeli blockchain gaming startup.
It found Israelis viewed innovation as offsetting uncertainty, while Americans saw high innovation plus limited verifiable information as increasing perceived risk and making funding decisions harder.
The findings suggest Israeli startups and policymakers need stronger English-language reporting, transparent data, recognised partnerships and other trust mechanisms to keep attracting foreign capital during economic uncertainty.
How can Israeli startups convincingly bridge the trust gap for foreign investors without sacrificing their innovative edge or speed?
Could Israel's push for transparency and standardized data paradoxically slow down the very innovation it aims to showcase to global investors?