Smith in Israel 2010

The Journey Continues

2011-05-17T14:45:00.006-04:00

Hello again! One year later, and once again, a group of 12 MBA students (both from Smith, as well as other top MBA programs) is primed to depart for eight weeks in Haifa, Israel as part of the Dingman Center’s Global Technology Entrepreneurship Fellowship program.

To myself and the inaugural team from summer 2010, the fact that the program has continued into a second year provides perhaps the greatest sense of satisfaction. It delivers tangible affirmation of the entrepreneurial path we blazed last summer. As the first participants in a brand new program, we knew the risks involved. Yet, without a doubt, last summer not only met, but exceeded our expectations. More importantly, we helped lay the foundation for this year's team to hit the ground running.

As I have mentioned previously on many occasions in this blog - Israel is an entrepreneur's dream. It is the quintessential Start-Up Nation. It is a land of high-tech innovation and a center of venture capital. Yet, it is also a land of many contradictions. For these and a myriad of other reasons, Israel is a fascinating laboratory for any business professional interested in studying innovation or entrepreneurship.

This post marks my final comments on the program. However, the story continues for this year's MBAs. If you are interested in reading about and following their exploits in Israel over the following two months, please head over to their page to find out more. Fellow MBA and 2011 participant Andrew Giessel has taken over blogging duties for this year's program. I wish him all the best, and hope you enjoy reading his posts this summer.

Final Videos

2010-08-11T21:47:00.003-04:00

Well, it has been quite a while since my last post! That being said, it was definitely nice taking a well deserved break after the hectic - mile-a-minute - pace I'd kept while in Israel. One person who was still working however was trip videographer, Steve Kushner, who after taking a brief detour into Jordan, returned home and pulled together two final videos chronicling our program. These videos capture the essence of our last three weeks in Israel - both in terms of the activities we participated in and the places we visited. Enjoy!

Back In The USA

2010-07-26T08:00:00.001-04:00

Last Friday morning at 4:45AM Eastern Standard Time, I landed safely back in the United States of America from Tel Aviv, Israel. After passing through customs and then a quick layover at Newark International Airport, I was in Washington by 8:20AM. All in all, it has been a very long, but satisfying summer in Israel these past 10 weeks. In so many ways, this program met and then exceeded my expectations. It was awesome!

Without a doubt, it is going to take a while to fully process the trip, before I can report back with my true post-Israel thoughts. Over the next few weeks though, I'll look to have a few posts here and there, recapping the trip, linking to the final YouTube videos, etc. So look for those in the following weeks. Additionally, later in August, the team will also be getting together once again with donors for a reception at the Robert H. Smith School. Further, we'll be pitching next years program to the incoming class of MBA students.

Farewell Israel

2010-07-23T08:00:00.001-04:00

After two months, our summer program in Israel has finally come to an end. The Smith team accomplished a lot - and for me personally - I believe this was a fantastic chance to participate in an internship unlike any other. It was challenging and rewarding in so many different ways. After I get a chance to decompress back in the States for a few days I'll provide a bit more post-game analysis. Until then, here is our final group photo - taken the second to last week - right before we drove south to Eilat from Rehovot.

Team Members, From Left to Right

Chris Rajashekar, Steve Kushner, Brad Husser, Don Mayer, Anne Bisso, Dan Branscome, Kelley Harris, Asher Epstein (Program Director), Sean Luke, Gil Sharon, Kristin Thompson

Dead Sea Visit

2010-07-22T15:00:00.001-04:00

Yesterday, after our fantastic hike and tour of Masada, we departed for our next stop of the day - the Ein Gedi waterfalls. Located west of the Dead Sea, close to Masada and the caves of Qumran, Ein Gedi contains a natural oasis, cave, and spring system - as well as a series of waterfalls and pools cascading from the high mountains above. It is a spectacular place - especially when you consider the surrounding desert conditions. Everyone who passes through the region inevitably stops at Ein Gedi - even if only just for a moment.

From the bus we hiked to the upper waterfall and pool. After our earlier hike at Masada, this one was pretty much a literal "walk in the park". That being said, it was still pretty hot, so some folks definitely took this as an opportunity to gripe. Once everyone was sitting in the cool water all the cares floated away. As we walked back down the trail to the parking lot, our guide mentioned the cultural and religious significance of the site. Apparently, Ein Gedi is mentioned several times in biblical writings. For example, it is featured prominently in the Song of Songs and also in Samuel - where David hides from Saul in the caves of Ein Gedi.

After departing the waterfalls, we traveled further up the coast to Mineral Beach - a small resort and spa along the shores of the Dead Sea. Heading straight to the beach, we jumped into the water. Since the water has such a high concentration of salt, you float right to the top. It's a very strange sensation, to say the least. The water also has a very smooth feel to it - almost like an oil - but not quite. Apparently, you can stay in the water for hours and hours, without ever getting wrinkled skin. Up on the beach was a small area to apply mud - which we each quickly caked all over ourselves. So much fun!

From the beach area, we all casually moved up to the on-site sulfur hot springs. Topping out at about 110 degrees Fahrenheit, this pool was a welcome third natural treatment after the waters of the Dead Sea and the full body mud applications. To be sure, it was absurdly hot outside, but believe it or not, these pools felt fantastic. Altogether, this was a great way to spend our final afternoon of the trip together. Tonight we are in Tel Aviv and tomorrow everyone says goodbye for the final time before going our separate ways. Without a doubt, it has been a good run this summer, but it had to end sooner or later. C'est la vie!

The Fortress Masada

2010-07-22T11:00:00.001-04:00

Masada is perhaps the second most famous Jewish site in Israel after the Western Wall in Jerusalem. Built by Herod the Great between 37 and 31 BCE, there were two immaculate palaces, fortified as a place of refuge for the monarch in times of crisis. During the Jewish Revolt in 66 CE, the fortress was seized by religious zealots (the Sicarii) who had fled from Jerusalem after the destruction of the Second Temple by the Romans. Not content with only near total victory, the Romans besieged Masada in order to crush the final resistance.

After many weeks preparing for our fateful climb of Masada, the day of our accent was finally here. Early Wednesday morning, the team awoke after our only semi-restful night at the Bedouin tent. Arriving at the entrance to the Masada park, the group exited the vehicle, got fresh water, and then began the trek up the Snake Path - while two in the group - Kelly and Anne - opted to take the cable car. From the base to the guard tower at the top is a very steep (and winding) climb. It took us all between 25 and 40 minutes to make the journey. Steve blazed up the hill with me hot on his heels. I finished second in a little under 30 minutes. Getting to the top (and out of the heat) was definitely a great feeling!

At the top, we toured the site and saw the many restored buildings and landmarks. We walked through the Western and Northern Palaces, as well as visiting the storehouses and private baths. It is an impressive and very large site. It's also very cool to see in person. One thing we did learn from our guide was that the site is no longer used as prominently by the military as it once was. At the end of the story, the zealots of Masada killed themselves and their families rather than surrender to the Romans. This had previously been regarded as an honor worthy in the IDF - but now has been minimized to a great degree.

After finishing our tour of the site, we returned to the entrance to the cable car for the descent back to the bus and then off to our remaining visits of the day. Masada was definitely all its cracked up to be and the hike was a surefire highlight of the trip.

Out In The Desert

2010-07-21T20:00:00.011-04:00

On Tuesday morning the team left Mitzpe Ramon for the drive north to Masada and the Dead Sea. Our first stop of the day was Avdat, the well preserved ruins of an ancient Nabatean city. Altogether, Avdat covers a wide area and includes a huge series of buildings - surrounded by an enormous rock wall. It is hard to believe that anyone would choose to live out in this hot and desolate area - especially in an era before A/C. To combat these difficulties, the ingenious Nabateans created unique water tech and other innovations.

"The team exploring the ruins of the Avdat site"
Photo by Kristin Thompson

Our second stop of the day was at Ein Avdat - a nearby nature reserve and park - for a short (but strenuous) hike. Carved into the desert floor, the canyons of Ein Avdat are really very beautiful. After walking in from the drop off point we reached a fork in the path where we quickly ascended about 100 meters in less than 10 minutes. By the top we were all sweating pretty profusely. Nearby to Ein Avdat is the burial site of David Ben-Gurion, the George Washington of Israel and the great statesman who helped guide the country to independence in 1948. Interestingly, it's very quiet site, despite its significance.

"Our museum guide explaining the history behind some old aircraft"

Photo by Christopher Rajashekar

Following this visit, we traveled to the Israeli Air Force Museum at Hatzerim Airbase. Over the next two hours we toured the site, looking at a whole variety of combat aircraft spanning the entire period of Israeli history from independence to the current day. This visit was of keen interest to a few of the plane junkies on our trip (i.e. Don Mayer and Sean Luke). Honestly, Don and Sean were like kids in a candy store. That being said, I think everyone thought it was a cool museum - though a bit heavy handed at times with patriotic vitriol.

"Don's camel - up close and personal"

Photo by Kristin Thompson

After another hour on the road we arrived at our home for the night - a Bedouin camp in the desert - with Masada in the distant background. Our first activity upon arrival was a 20 minute camel ride. Believe it or not, camels are not as smelly or ill tempered as they are often portrayed. It was not the most comfortable ride, but no one had any real complaints. After the ride, we were welcomed in a traditional Bedouin ceremony. Our host provided us with fresh bread, tea and bitter coffee - as well as music.

"Our Bedouin host - fire roasting some coffee beans"

Photo by Kristin Thompson

In the evening we went to a laser light and music show at Masada. The show was short, but interesting. Upon returning to the Bedouin camp, we had time for some nargila around the fire before retiring to our tent. Many of us had camped numerous times in our lives. That being said, this was probably the least comfortable night of the trip. It was hot and loud. Plus, the camp was overrun by a particularly virulent plague upon the land - not locusts - actually much worse than locusts - Birthrighters. Sadly, not the first time we'd seen them this summer. Ugh.

Makhtesh Ramon

2010-07-21T14:00:00.003-04:00

This past Sunday - after leaving Eilat and then touring the Bahad 1 military base - the team arrived in the town of Mitzpe Ramon - the most remote settlement in Israel - on the edge of the Makhtesh Ramon or Ramon Crater. You can go 25 miles in every direction before finding another settlement. The Ramon Crater in a natural crater formed - not from a meteor - but rather from erosion over thousands of years. In many respects the area reminded me of the Southwestern United States - and in particular the Grand Canyon. Very, very beautiful!

"Our jeep tour guide discusses the history of the crater"

Photo by Kristin Thompson

Monday was a lazy morning. After a few early mornings over the previous week, we slept in bit. Our first activity of the day was rappelling along the side of the Ramon Crater. For those that had never rappelled it was fairly cool - while for the old hands (myself included) it was a little anticlimactic. No matter, it was still a lot of fun. After that a few of us took a brief hike back to the hotel. Along the way we saw some Nubian ibex, which was pretty cool!

"The lead jeep passes around the next bend"
Photo by Brad Husser

Later in the afternoon, we had a two hour tour of the crater. Driving in two beat-to-hell - but ridiculously awesome - Land Rovers, the group was taken all around the crater - seeing various geological and historical sites. At one point we stopped to see Khan Saharonim - which are the remains of a Nabatean way station used on the Incense Route from Petra to Gaza over 2,000 years ago. in another instance, we walked a dry river that only flows for 1-2 months per year. Our guide showed us that water can be found right under the surface.

"The 2,000 year old remains of a Nabatean way station"
Photo by Kelley Harris

In the evening, a few people went to star gaze up an overlook of the crater. Altogether, the Makhtesh Ramon is definitely one of the coolest natural geological sites I've ever visited.

Israeli Defense Force

2010-07-21T13:00:00.004-04:00

This past Sunday the group had the opportunity to visit Bahad 1 - the officer training school for the entire Israeli Defense Forces (IDF) - essentially the West Point for Israel. Our Israeli teammate, Gil Sharon, took the initiative and contacted the base the prior week to arrange a tour - and despite the short notice - the people he talked with at the base were extremely excited to host us for a tour of the facility and arrange meetings with cadets, as well as a one-on-one meeting with the base commander Col. Yehuda Fuchs.

"Q&A session with three officer candidates at Bahad 1"

Photo by Kristin Thompson

The base is located very near to the Ramon Crater - so after driving up from Eilat - we arrived at the base around 5pm in the evening. After clearing the gate, Gil went to find our hosts, both officers and trainers at the base. For about an hour they guided us on a tour of the facility - walking the grounds and pointing out the key landmarks. From there we went to a brief video presentation on the history of the IDF and the Bahad 1 base. This was followed by a Q&A session with three current cadets. Very interesting - especially in that the soldiers all had fairly different backgrounds prior to beginning military service.

"The team listens in as Col. Fuchs discusses the IDF"

Photo by Kristin Thompson

Our final meeting was with Col. Fuchs (aka "The Fox"), the commander of the base. This was quite an experience - and though the conversation was relegated to what I imagine is a fairly standard script - Col. Fuchs seemed incredibly candid and open about the military and its mission. After talking for a while, he asked for questions and wasn't hesitant to answer any of our queries. Hearing his opinions - especially in regards to the IDF's changing role in dealing with asymmetrical warfare against terrorists - was very enlightening. Very cool!

City Of Petra

2010-07-21T00:01:00.002-04:00

On Saturday - while the rest of the group hiked in the Red Canyon - Chris and I opted to take a day trip to Jordan to see the ancient city of Petra. Established sometime around the 6th century BCE as the capital city of the Nabataeans, Petra is a symbol of Jordan as well as its most visited tourism attraction. Hidden in a canyon near the modern day city of Wadi Musa, it is now listed as one of the new seven wonders of the world. Petra was made famous (at least in the USA) in 1989 by the movie Indiana Jones and the Last Crusade (one of my personal favorites) and since then has been a place I have always wanted to see first hand.

Our day started early in the morning. After breakfast, we were met by a rep from the tourist company nearby our hotel. They quickly escorted us to the Yitzhak Rabin Border Terminal, which is the point of entry to Jordan - and to the city directly opposite to Eilat on the Jordan side of the border, Aqaba. After about 30-40 minutes of processing (i.e. visas and stamps were issued) we crossed the border from Israel to Jordan. Once we crossed we were met by our tour guide, driver, and a tourist policeman, who would all accompany us for the day.

"The entry point to Jordan with the poster of King Abdulla looking on"
Photo by Christopher Rajashekar

From the border entry point, our tour bus - which included us and about 18 other tourists (mostly Europeans) - proceeded on the road north to Petra. The drive was about two hours, but the scenery along the way was amazing. We skirted the Wadi Rum area - also known as the Valley of the Moon - which was featured prominently in the classic film Lawrence of Arabia. We also drove through some beautiful back country (there was a detour off the main highway) where we saw many Bedouin settlements.

"Walking through the Siq on my way to Petra"
Photo by Christopher Rajashekar

Upon arrival in Petra, we walked from the parking lot into the archeological site. The path through the entry path, the Siq, took us about 30 minutes. The path winds back and forth through a narrow series of canyons before finally emerging into the most recognizable landmark in Petra, Al Khazneh aka The Treasury. To finally see this amazing architectural site in person was so incredibly cool! What was even cooler though was to realize that this was only the tip of the iceberg in Petra.

"Chris and I stand in front of Petra's fabled Treasury"
Photo by Christopher Rajashekar

Over the next two hours we were mostly free to wander the site and explore on our own. I very quickly was overwhelmed by the sheer size and scope of this settlement. The city stretches over an area over 26 square kilometers - meaning it would be impossible to see it all in such a short amount of time. At its peak, Petra must have been a magnificent capital. It was also one of the most unique - in that almost all the homes, shops, and temples were carved directly into the cliff sides. Unbelievable!

"Me looking out over the expansive Petra site"
Photo by Christopher Rajashekar

Before heading back to the border, our tour group stopped for a bite to eat in the adjacent, modern city of Wadi Musa. Having spent the past ten weeks in Israel it was interesting to compare the similarities and differences in culture - especially given that from a geographic perspective - this town wasn't that far from Israel. All in all, I think their is more in common than either side would admit, but there is definitely many stark differences, too.

"A view of Wadi Musa on the bus back to Aqaba"
Photo by Christopher Rajashekar

The ride back to the border was uneventful. Once we were back near Eilat, the tour guide took us on a ride through the center of Aqaba. Though there is definitely a lot of construction - Aqaba is still a lot quieter than its next door neighbor, Eilat. The number of resort hotels is still significantly lower, and the supporting businesses just aren't there yet. Give it a few years (and enough investment) though and I'm sure Aqaba will catch up.

"Crossing back into Israel from Jordan"
Photo by Christopher Rajashekar

The time to cross the border back into Israel went by fairly quickly - though the Israel custom control definitely asked a lot more questions than their Jordanian counterparts had earlier in the morning. Back at the hotel Chris and I joined the group for dinner. It was a great side trip and we both agree was well worth the time, cost, and effort!

Fun In The Sun, pt2

2010-07-20T14:00:00.009-04:00

On Saturday, the team awoke early again for another hike, this time to the Red Canyon. For Chris and I, this day was an opportunity to travel to Jordan and see Petra - which is about a three hour journey from Eilat. Quite a few members of the group will be traveling on to Jordan after then trip concludes later this week, but since I don't have that option I took advantage of the chance. I'll cover this trip in a later post. Anyway, back to the main group.

"The team explores the Red Canyon"
Photo by Kristin Thompson

The Red Canyon is a gorgeous narrow passageway carved into the desert mountains not far from Eilat. Unlike the hike the previous day, this trek (at least according to the group) was much more relaxed, and also significantly cooler, since a lot of it is in the shade. After a little over an hour, the team had made it through and were back on the road to the hotel in Eilat. Following breakfast, the team had some time for the pool and then headed to a beach area for snorkeling by the coral reef - very near to where I'd scuba dived the day before.

"Gil climbs up from the canyon floor"
Photo by Kristin Thompson

In the evening, many in the group got ready for some late night partying in Eilat. The party started early in the hotel and then migrated out into the city - eventually to the Three Monkeys Pub - a real staple of the Eilat scene. Gil and I both called it a night early (before everyone left the hotel) since we wanted to get up early for some more scuba before leaving Eilat the next afternoon. It's a good thing we did - since people didn't make it back to the hotel until almost four in the morning. What a night they had!

"Anne leads the group in the Wakka Wakka dance"
Photo by Brad Husser

Bright and early on Sunday morning, I returned for two final dives at Marina Divers. Both dives were wreck dives - the first to a small pleasure yacht and the second to the missile boat I'd already seen on Friday. At one point in the dive we saw an octopus (we'd seen him previously) which was pretty cool! I returned to the hotel after diving where the rest of the group was ready to go. Once we'd all gotten our stuff together and checked out of the hotel, we departed for Eilat's underwater observatory and aquarium. They had some really interesting sea life, including sea turtles and sharks, as well as tons of cool fish.

"Anne and Sean look on in awe at some very cool jelly fish"
Photo by Kristin Thompson

Eilat was a great place to see at the end of the trip. It was hot, but very chill, and some of the sights we experienced were definitely one of a kind. With the trip now quickly wrapping up - we have only a few days left. We're now heading back to the north with stops at the Ramon Crater, Masada, and the Dead Sea, before one final night in Tel Aviv.

Fun In The Sun, pt1

2010-07-20T10:00:00.002-04:00

On Thursday the team arrived in the late afternoon to Eilat. Israel's southernmost city, Eilat is a popular resort town on the Red Sea. Everyone was really excited for some time at the beach - though the heat in Eilat (especially at this time of year) is particularly brutal.

Upon arriving at Eilat, Gil and I both went immediately to Marina Divers. Back before he left Israel for college at Maryland, Gil had been a dive master instructor there - so this was definitely the place to set up camp. I got my PADI open water certification back in 2004 in Koh Tao, Thailand, but I was a bit rusty so I needed to get re-certified before I could go out for dives. While I did the hour long course, Gil went out on his own for a solo dive. With my clearance, I was ready to go for the next few days. In the mean time the rest of the group either crashed back at the hotel and/or looked for shopping at the big mall down by the waterfront. Everyone reconnected a little later in the evening for dinner and nargila on the beach. All in all, it was a great first night in Eilat!

"The undersea beauty awaiting just off the coast of Eilat in the Red Sea"
Photo by Aqua-Sport

The following morning we all met at daybreak (6am) in the lobby to depart for an early morning hike up Mt. Zephachot. Adjacent to the coast, this mountain offered breathtaking views of the surrounding desert, as well as the Red Sea all the way from Saudia Arabia and Jordan, back to Israel. Given the heat (pushing 110 degrees that morning) the hike was not a picnic. We were all very sweaty and tired by the time we reached the peak. That being said, the view was well worth the effort.

"The team takes a much needed break after climbing Mt. Zephachot"
Photo by Kristin Thompson

Following the hike, we returned to the hotel for breakfast and a rest. Gil and I hopped a cab back to the dive shop and had a dive. Not more than a few hundred feet off the coast is the shipwreck of an old Israeli missile boat, which was intentionally foundered many years ago. We descended and swam through the boat before heading back to the surface via a coral reef. It was awesome! After our dive, we put away our gear and returned to the hotel where the group departed for a tour along the Egypt-Israel border fence.

"Steven looks out at the Egyptian guard tower near the Taba crossing"
Photo by Kristin Thompson

After the border tour everyone was excited to proceed to our next stop, the Kassui Sand Dunes. Straight out of a movie (think Tatooine or Dune), these otherworldly sand dunes were a lot of fun to play around on. We hiked up the side and found the perfect spot to dive off into the sand - and almost everyone took a turn leaping and jumping off the edge. The only downside to this little escapade was that the sand was hot as hell and stuck to everything. No matter, it was still a lot of fun!

"Brad showing some moves at the Kassui Sand Dunes"
Photo by Kristin Thompson

Post sand dunes, I once again went for another dive, before rejoining the group for our final acts of the evening - water sports at the Red Sea Sports Club. First the group took out the world's slowest motorboats (maybe 5 horsepower). We then got to ride the banana boat (being tugged behind a significantly faster boat). Lastly, some in the group opted to take out kayaks, while the rest of us got drinks at a bar on the beach. It being Shabbat, the group took it easy that night at the hotel. Another successful day in the books!

The Arava Institute

2010-07-20T00:01:00.002-04:00

After finishing our class in Rehovot at Hebrew University on strategic water management, the team packed up and headed into the deep south of Israel and the Negev Desert.

Our destination for the night (and next day) was Kibbutz Ketura - home of the Arava Institute for Environmental Studies. Arriving in the early evening, the team quickly dropped our stuff off at our rooms before heading to a BBQ at the Kibbutz pool. There were all the essentials (i.e. hamburgers and hot dogs, as well as an enormous pool). The Kibbutz was also playing host to a bunch of British birthrighters, who we (actually Asher in particular) challenged to a game of football. We lost a close match - but it was still good times.

"Our living quarters for our one night at Kibbutz Ketura"
Photo by Jessica (at Israelity)

After getting back to our rooms everyone brought drinks to the roof of the lodge to watch the stars and talk. In the desert, the sky at night is really something to behold. Early the next morning, we were up and out of our rooms by 7am. After a breakfast and a quick tour of the kibbutz, we proceeded to the conference room at the institute, where we heard from from the first of a few speakers regarding Arava's mission and activities.

Each of our meetings lasted about an hour. Our first meeting of the day was with Dr. Tareq Abu-Hamed, who is the head of Arava's Center for Renewable Energy and Energy Conservation. Following this meeting, we heard from Roy Kagan of the Arava Power Company. Our third visit was with Noam Ilan at the Regional Energy Commission. Each of these three visits highlighted a different aspect of the Arava mission and some of the pioneering research they are conducting on site at the kibbutz.

"Exploring the Aora Solar Energy Installation"
Photo by Kristin Thompson

In the afternoon we had a visit to the Aora Solar Energy Installation at Kibbutz Samar. The Aora installation is interesting in that it is an experiment in providing a modular point source solar power system - though at this point the power outputs are still negligible. Before returning to lunch at Kibbutz Ketura, we stopped for a small ice cream snack at the Yotvata. The ice cream was good - but for me the real highlight was their chocolate milk. So good!

Upon return to Arava we had a final afternoon meeting with Miriam Sharton the Associate Director of the institute. Altogether, our brief visit was a great experience. With this portion of the trip complete we left the kibbutz to head down to Eilat. As we entered into Israel's southernmost city, we said goodbye to our fearless leader, Asher, who boarded a plane to head back to the US via Tel Aviv. Goodbye Asher!

World Cup Final

2010-07-19T17:00:00.004-04:00

Last Sunday the world stopped for a moment to watch the beautiful game. As an American abroad, getting into soccer/football this summer has actually been pretty cool! Every match - not just the USA matches - has been required viewing, either at the local pubs in Haifa or back at our house in Ramat Eshkol.

Since we were no longer in Haifa for the weekend of the final, the team decided to take cabs into Tel Aviv to watch the match. What better place to see the 2010 World Cup Final than in the country's most party-centric city! After a great dinner - the team migrated to the Paradise Bar - the local Dutch expat bar to watch the game. The mood at the bar (and in the streets surrounding it) was electric. Everywhere you looked, people were gathered around TVs or were standing on whatever they could (cars, benches, etc.) to see the various big screen projectors that had been set up. Some folks in our group found a hole in the wall bar next door to watch the match, while another group (me included) went down the block to a schwarma place to see the game. In the end - the Dutch lost in OT - which was a big disappointment for everyone (me especially) since we'd all been pulling for the boys in orange. That being said, the Spanish played a heck of a game and that final goal was very clutch. Congrats to them.

Hebrew University, pt2

2010-07-19T12:00:00.003-04:00

Our next visit on Tuesday was to the Shafdan Rishon Wastewater Treatment Plant. The world's largest wastewater treatment plant, the Shafdan plant treats almost 500 million cubic feet of water annually - serving a population in the Dan Region (which includes Tel Aviv) of over 2 million people. Operated by Mekorot, this plant's reused water is transferred in large quantities to the agricultural regions in the Negev.

"Exploring the model of the Shafdan Watewater Plant"
Photo by Kristin Thompson

As we came to find out during the tour - Israel reuses almost 75% of their water. The next closest country is Spain at 12%. The USA only reuses a little under 1% of our water. What makes these figures the most appalling is that most wastewater is 99.9% water, and only 0.1% waste. We obviously have a lot to learn from Israel in terms of water management.

"Inside an exhibit on the Shafdan facility"
Photo by Kristin Thompson

On Wednesday, the team had a final class with Dr. Gilad Axelrad, another professor in residence at the School of Agriculture. Over about two hours, Dr. Axelrad discussed the various innovative structures for creating partnerships between government and private industry in order to address public infrastructure projects. Following this class, the team was accompanied by Dr. Axelrad to Palmachim Desalination Plant - the second largest desalination plant in Israel - and one of the largest desalination plants in the world. Our on-site host at Palmachim was Avram Tenne the head regulator for water plants in Israel.

"The team dons hardhats at the Palmachim Desalination Plant"
Photo by Kristin Thompson

The visit to the desalination plant was for me the most interesting of the water company visits we had while at Hebrew University. As we had at the previous facilities, we were given a full tour of the plant, seeing the entire operation from start to finish. At the end of the tour, we got to taste the end product (i.e. purified salt water) which had been in the ocean only 20 minutes previously. Interestingly, the taste wasn't quite what I expected - apparently having to do with the fact that many minerals that are normally in drinking water hadn't been added back yet. Still it was very cool!

Hebrew University, pt1

2010-07-19T01:39:00.003-04:00

After departing Haifa last Sunday, the team headed south to the city of Rehovot for a four day course in strategic water management at the Robert H. Smith School of Agriculture at Hebrew University. Combining classroom instruction from faculty, with site visits to various area water projects in central Israel, the short program was designed as an intense boot camp in all aspects of the water business landscape - both in Israel and globally.

"Dr. Yoram Porat lectures on the structural models of global development"
Photo by Kristin Thompson

Our first visit of the day was with Dr. Yoram Porat, a distinguished faculty member in the field of international strategic planning and project management. Over the course of two multi-hour sessions, Dr. Porat provided a dynamic overview of the models and frameworks that provide the foundation for most global development initiatives - and particularly those in the realm of water management. At times, Dr. Porat lingered on conceptual ideas more than I would have liked, but in total his instruction was useful in providing meaningful dialogue within the team and raising issues we otherwise wouldn't have considered.

"On the roof Ra'anana's offices overlooking their facility"
Photo by Kristin Thompson

On Monday morning we awoke early for a day of company visits. The first visit of the day was to the Ra'anana Wastewater Treatment Plant. Our host, Avital Dror-Ehra - the on-site manager, provided the team with a comprehensive presentation on water issues in Israel, as well as a functional overview of the wastewater treatment system. Afterward, we received an hour long tour of the facility in order to see the system in operation. The Ra'anna plant is not overly large, though the small size was helpful putting the full process into context.

"The team looks at the bio-refiners at Ra'anana plant"
Photo by Kristin Thompson

That afternoon the team visited the Yarqon River Authority for a presentation by general manager (and University of Maryland graduate) Dr. David Pargament. The Yarqon is the major river and watershed in the Tel Aviv metropolitan area. Over the past few decades, as population and industry have increased, both water quality and water volumes have declined precipitously. The Yarqon River Authority is a semi-private, independent body, that was set up to combat the challenges to the Yarqon. It is amazing the success they've had in such a short amount of time - especially due to the multi-layered government bureaucracies.

"Dr. Pargament presents on the history of the Yarqon River"
Photo by Kristin Thompson

On Tuesday the team visited the Ayalon Institute - which though actually non-water related - was still of interest for its cultural (and entrepreneurial) history. Located on Kibbutzim Hill in Rehovot, the Ayalon Institute was the primary (clandestine) ammunition factory for the Haganah (Jewish militia) in the time before and during the 1948 Independence War.

"The exit to the underground bullet factory of the Ayalon Institute"
Photo by Kristin Thompson

Between 1946-1948, over 2+ million bullets were manufactured here. These were nine-millimeter bullets, for the Sten sub-machine gun, which was the primary personal weapon during the war. In many respects, this factory was a precursor to the defense industry and contractors that would arrive after the war. What was most interesting about this factory was that it was hidden almost 30 feet below the floor of the laundry. Very cool!

Elephant In The Room

2010-07-15T16:43:00.001-04:00

We're currently in Southern Israel - having just visited Rehovot and now the Negev. As I've been on the bus for a while I've had time to reflect on the trip. Since arriving in Israel back in May, one topic that hasn't received a significant amount of attention (either from the speakers we've talked to, the companies we've visited, or on this blog itself) has been the issue of the business and economic conditions of both Israeli-Arabs and Palestinians. This is not to say that we haven't covered this issue generally, but this is an issue that (for a variety of reasons) hasn't always been the most comfortable or ready area of discussion.

"Some typical graffiti in the West Bank"
Photo by Stephen Kushner

To a large degree Israel's rapid economic progress of the past twenty years has been directed primarily towards Israel's Jewish communities. Oftentimes, Arabs (both Christian and Muslim) have been on the outside looking in (sometimes by choice and sometimes not) and even more so for the Palestinian populations of the West Bank and Gaza Strip (especially now that they are physically cut off from Israel by the Barrier Wall). This separation is clear when you drill down on the numbers. Income per capita among Arab-Israelis is one third that of the national average. For the Palestinian Territories, income per capita is one tenth that of Israel. It is not inconceivable to think that the future success of the peace process hinges on rapidly improving the economic conditions of these groups.

"A Palestinian woman in the city of Bethlehem"
Photo by Stephen Kushner

Regarding the Israeli-Arab population, Israel is looking to emulate the success of the government backed Yozma venture funds of the early 1990s. As such, they have launched the Al-Bawadir ("buds" in Arabic) fund in cooperation with Pitango Capital (see here). Al-Bawadir will invest approximately $50 million in Arab-Israeli ventures. The government provided $20 million, and Pitango general partners Nechemia Peres, Rami Kalish and Zeev Binman, along with various other private investors, provided the rest. When we met with Chemi Peres last week (see here), this was an area he talked about as being the most critical component of Pitango's strategy going forward - and also an essential path to continued prosperity in Israel over the coming decades. Jerusalem Venture Partners and Viola Partners are also launching similar funds, which will begin investing in the next year.

In terms of the Palestinian population, Thomas Friedman of the New York Times recently discussed (here) the ongoing economic renaissance in the West Bank - which is paralleling the slow, but improving, economic improvements within the Israeli-Arab community - commenting that the changes ...

"initiated in the West Bank in the last few years under the leadership of Prime Minister Salam Fayyad, the former World Bank economist ... has unleashed a real Palestinian “revolution.” It is a revolution based on building Palestinian capacity and institutions not just resisting Israeli occupation, on the theory that if the Palestinians can build a real economy, a professional security force and an effective, transparent government bureaucracy it will eventually become impossible for Israel to deny the Palestinians a state in the West Bank and Arab neighborhoods of East Jerusalem."

One example that Friedman points to highlight the economic revival is the Palestine Exchange Board in Nablus, which was established in 1996 with 19 companies. It now has 41 with 8 more joining by the end of 2010. More to the point, this year the Al-Quds Index, which tracks this market has outperformed most other markets in the Arab world, as well as many markets in Europe and the United States. Hopefully - as I optimistically agree - this recent success - driven in no small part by the reforms of Salam Fayyad - offers positive signs for the rest of the Palestinian economy as a whole.

Over an over this summer, we've heard about the amazing "Start-Up Nation" that is Israel. Further, we've discussed and debated the characteristics that have enabled Israel to achieve its success. This prosperity and success though has been limited in its effect. The political and military conflicts are inextricably linked to economic conditions. For peace to ever succeed, it is in Israel's best interest if they look for ways to export their model to both their own Arab population, as well as to the Palestinian areas. Ultimately, the true success of the start-up nation may actually come in the next twenty years.

Obviously this issue raises many heated opinions on all sides - which I can't even hope (or have the ability) to address on this blog. That aside, I think from an economic standpoint there is a major question both sides need to address. For Israel, they must ask whether they have the desire and willingness to commit resources to improve the economic standing of the Arab populations (both in Israel and the occupied territories), even as they face resistance and hatred. For the Arabs and Palestinians, the question is, can they find positive purpose in a program of concerted economic growth and the building of a functioning economy and government, free of graft and corruption, rather than an existence centered on the negative (i.e. the destruction of Israel).

In both cases, I think the answer is yes. Perhaps I am naive or optimistic. Maybe, but I don't think so. There are at least groups like The Center for Jewish-Arab Economic Development, initiatives like Pitango Capital and Al-Badawir, and success stories like the Al-Quds Index. In the long run, I honestly believe that if Israel's economic success can be replicated (even partially), this will go a long way towards solving a lot of the regions problems.

More Venture Capitalists

2010-07-14T02:00:00.003-04:00

Last Tuesday - July 6th - the Smith team drove down to Herzliya - a suburb of Tel Aviv - for a series of meetings and company visits. Our first stop of the morning was at Better Place, which I've already detailed in two previous posts (here and here). After finishing our meeting at Better Place, we traveled to Benchmark Capital. Later in the afternoon, we had our final visit of the day at the offices of Pitango Capital.

Upon arrival at Benchmark Capital, our first visit was with Shai-Lee Spigelman, the Marketing Manager for Microsoft's Israel R&D Center. Shai-Lee talked with us about the Microsoft experience in Israel. In other words, the when, why, and how they entered the market. She focused primarily on the most relevant aspects related to research and in particular research for a larger multinational corporation. It was my takeaway that Microsoft (as do a lot of other companies) rely on their Israeli team for some of their most difficult problems and tasks. They also see Israel as a focal point for innovation, as exemplified through their ThinkNext conference. All that aside, there are at times difficulties both cultural and logistic in coordinating between headquarters and Israel.

"Microsoft's Shai-Lee discusses R&D in Israel"
Photo by Kristin Thompson

Following our talk with Shai-Lee, we heard a series of impromptu comments by Ellie Wurtman, a general partner at Benchmark. Ellie briefly talked to us about Benchmark's current investment portfolio, as well as the perceived risks he sees going forward for both his firm and also the broader venture capital market, given current conditions. Ellie then introduced us to the second presenter of the day, Avichay Nissenbaum, the country manager for AOL Israel and the CEO of Yedda Inc.

"Avichay Nissenbaum giving his start-up to buy-out story"
Photo by Kristin Thompson

The Yedda story is a prime example of a start-up success - and more specifically a start-up that succeeded through the investment and backing of venture capital. The name Yedda comes from the Hebrew word for "knowledge". Founded in late 2006, Yedda is a website built to share knowledge with others by asking and answering questions. What I believe is most interesting about the Yedda story is that they were not the first mover in this space. In fact at the time of launch, Yahoo Answers, Wondir, and Google Answers were already offering similar services. Yedda differentiated themselves based on a number of unique offerings as well as through selling their service as a Q&A platform for other independent sites. Traffic grew rapidly over the first year and by November 2007 they had been acquired by AOL - which has subsequently integrated Yedda into their existing website(s).

Our final meeting of the day was at Pitango Capital. Founded in 1996, Pitango was Israel's first major venture capital firm. Over the past 14 years they have invested over $1.3 billion in 120+ portfolio companies. Pitango has been involved in many of the most successful Israeli ventures over this time period. Our host was Chemi Peres, co-founder of the firm and son of Shimon Peres, former Prime Minister and current President of Israel. Chemi is one of the most well connected and experienced venture capitalists in Israel.

"The team listens closely as Chemi Peres talks business"
Photo by Kristin Thompson

For about an hour and a half, Chemi provided us a comprehensive overview of the current Israeli economic condition. He definitely had some insights (very pragmatic/realistic) that surprisingly (i.e. Israeli people are notoriously blunt) we hadn't heard yet during our time in Israel. Following this, Chemi then drilled down on the story behind one of Pitango's original venture investments - VocalTech Communications. In many ways, VocalTech exemplifies both a "great" venture capital investment as well as "flawed" investment. It was great in that it delivered a high return on capital. Concomitantly, the venture did not originally go as far as it could have in capturing the value of the space. Other players (e.g. Skype) came late, yet gained more - mostly because they took greater risks. VCs - though they seem risk seeking - are actually as risk averse (if not more so) then most investors. Lesson learned.

Goodbye Haifa

2010-07-13T02:16:00.004-04:00

Friday was relaxed during the day. Mostly it consisted of recovery from the previous evenings shenanigans. That night however we went by taxi to the artist's colony, Ein Hod for drinks and dinner. Our first stop of the evening was at Danny Shlyfestone's Art Bar for some home made beer. Danny - who is quite a character - makes his home brews in giant vats and then bottles them in recycled soda bottles. Really good stuff.

"The brewmaster, Danny Shlyfestone, in his natural habitat"
Photo by Nadav Bloch

Our next stop was to the Argentinian steak house, Doña Rosa. This place is - to this point - the dining highlight of the trip. Steaks (we all shared a mixed grill) came perfectly prepared on mini charcoal grills at the table. If that wasn't enough, the wine was fantastic and desert was amazing. This is one meal I will remember for a long time.

"Hands down, one of the best meals ever"
Photo by Kristin Thompson

On Saturday, everyone had a relaxing and chill final day in Haifa. I spent the majority of the day at the beach - taking in the sun, drinking iced coffees and smoothies, and generally doing nothing of value. In the evening, we ate the remains of the lamb from our schecting (see here). Some we cooked as steaks, the rest as an Irish stew. Altogether, it was delicious. Afterwords, we watched the World Cup runner-up match between Germany and Uruguay.

"Sunset on Karmel Beach in Haifa"
Photo by Stephen Kushner

Sunday morning we left Haifa for the last time. In many ways, it was sad to say goodbye. That being said, the remainder of the trip sounds great! Southern Israel, here we come.

Final Presentations

2010-07-12T00:01:00.007-04:00

On Tuesday, prior to our final presentations later in the week, the team was invited to celebrate the end of the course at a BBQ hosted by one of the VCs. The event was a great culmination to the course and was a really terrific send-off by our professor Uzi de Haan as well as the various other VCs who've been with us since week one. It also definitely didn't hurt that the food (chicken and lamb kebab) and locale were awesome, too!

"I talk with Gil about cross cultural relations at the celebratory bbq"
Photo by Kristin Thompson

On Thursday night we gave our final presentations - on our tech commercialization and business plan projects - to a panel of venture capitalists. Other members of the audience included classmates, professors, inventors, and representatives of the Technion Technology Transfer Office. Our final pitch was a summation of the previous 7 weeks - distilled into a succinct 15 minute pitch. All in all, the shared consensus was that everyone did a terrific job with the presentations. Personally, I'm glad to be done.

"Kristin and Kelley pitch their hydrogen business to the VCs"
Photo by Stephen Kushner

That night, following class, the team went out and celebrated in Haifa until the whee hours of the morning. Our first stop of the evening was The Sleek. Many hours and drinks later everyone relocated via taxi to Haifa beach for dancing and swimming in the late (early) morning hours. Shortly thereafter we caught taxis back to the house. Good times!

Back to Jerusalem, pt2

2010-07-11T06:00:00.002-04:00

On Saturday we woke up at a more reasonable time (leaving Ramat Rachel at 9:30am) for a visit to the Israel Museum. Located on a hill in the Givat Ram neighborhood of Jerusalem, near the Knesset, the Israel Museum is most famous for two amazing exhibits. The first is an enormous and fully detailed (22,000sqft) model of Jerusalem at the time of the Second Temple. The second is the Shrine of the Book which contains the Dead Sea Scrolls discovered in (now) southern Israel in 1947–56 in 11 caves around Wadi Qumran.

"Our guide, Israel, talks with us about ancient Jerusalem"
Photo by Kristin Thompson

Our tour guide, Israel, took us on a full tour of the model. Over about 30 minutes we walked to each side - and were provided a thorough history of the city - as it was two thousand years ago. Incredibly - despite the centuries and the modern construction - the actual city retains a very consistent visual appearance to the model. The colors and layout have not changed drastically over the centuries. After our tour of the model we visited the Shrine of the Book. Interestingly, the outside of the shrine is constructed to visually represent the War of the Sons of Light Against the Sons of Darkness. The white dome symbolizes the Sons of Light, while the black wall symbolizes the Sons of Darkness. The interior of the shrine is like a cave, representing the environment in which the scrolls were discovered sixty years ago.

"The Sons of Light and the Sons of Darkness"
Photo by Kristin Thompson

That afternoon, a few of the team decided to visit the Old City of Jerusalem again, instead of heading back to the hotel. Those who went did quite a bit of shopping (mostly nargilas) before stopping at a bar for drinks and snacks. I (and a few others) opted to return to the hotel for relaxation either inside at the bar or out at the pool. According to a few people, the water slide was pretty amazing, though I didn't get a chance to try it myself. That evening the team went out on the town in Jerusalem - first to watch the World Cup match between Paraguay and Spain and then later to a nearby dance club. It was a very late night.

"Sherwin Pomerantz talks with the group about Israeli business"
Photo by Kristin Thompson

Sunday was focused on company visits and meetings. In the morning we had a meeting with Sherwin Pomerantz at Shelby's house. A 24-year resident of Israel, Sherwin (and three others) founded the Atid-EDI consulting firm. Atid-EDI is a team of economic, research, trade development and planning professionals who understand the nuances and business climates in Israel, North America and the region. Since 1991, Sherwin's firm has functioned as consultants to Israel's Ministry of Industry, Trade & Labor's Investment Promotion Center. He has also represented the trade interests, in the Middle East, of a number of U.S. states, including Delaware, Georgia, Illinois, New Mexico, Oklahoma, and Pennsylvania. As you can imagine, Sherwin had the knowledge to provide for a very interesting meeting!

"The group visits PresenTense to hear from Jewish entrepreneurs"
Photo by Kristin Thompson

After this meeting we traveled to Jerusalem's German Colony to visit PresenTense, a group that aims to foster entrepreneurship and leadership amongst the international Jewish community. While there, we heard business pitches from a group of summer fellows. We made sure to ask them lots of tough questions. The highlight of our visit to PresenTense though was that we got to hear a talk by Saul Singer, author of Start Up Nation (detailed in this previous post). Altogether, it was a pretty cool set of meetings!

"Saul Singer gives a talk on his book Start Up Nation"
Photo by Kristin Thompson

That afternoon, we finished our weekend in Jerusalem by celebrating America's Independence Day, July 4th. Once again, we traveled back to Shelby's house - this time for a BBQ. Hot dogs and hamburgers (sans cheese unfortunately) were plentiful, and everyone was content. Though we weren't able to acquire fireworks, it definitely was a great way to feel like we were back in the US of A. That evening the team hopped in the van for the long trek back to our house in Haifa - one final week of classes left to go.

Back to Jerusalem, pt1

2010-07-10T20:00:00.003-04:00

After a very busy final week in Haifa, I've finally gotten around to writing about our trip last weekend to Jerusalem. It was a pretty packed weekend, so there's a lot to cover. On Friday morning (July 2) we departed very early from Haifa for the ride south to Jerusalem.

"The Old City of Jerusalem just before sunset"
Photo by Stephen Kushner

After a sleepy ride south, our first stop was at Yad Vashem, Israel's official Holocaust memorial and museum. Established in 1953 through the Yad Vashem Law passed by the Knesset, Israel's parliament, the museum is a 45-acre (600,000sqft) complex located at at the foot of Mount Herzl on the Mount of Remembrance in Jerusalem. It contains the Holocaust History Museum and memorial sites, such as the Children's Memorial and the Hall of Remembrance. The origin of the name is from a Biblical verse: "And to them will I give in my house and within my walls a memorial and a name (Yad Vashem) that shall not be cut off". Annually, it is Israel's second most visited site behind the Western Wall.

"Inside the Hall of Remembrance at the Holocaust Museum"
Photo by Kristin Thompson

Even for those among us who had previously visited either the US Holocaust Museum in Washington D.C. or visited the concentration camps in Europe, this was a very somber and sobering experience. As a few of us noted, the internal architecture of the museum felt intentional - leading visitors through a confined and crowded space - with the cement walls seeming to fall inward as one walked through the exhibits - recreating the feel of the concentration camps. In contrast, the exterior grounds were beautiful, with many memorial statues and gardens. All in all it was an experience we will all remember for a long time.

"Looking out at Judea after emerging from the Holocaust Museum"
Photo by Kristin Thompson

After Yad Vashem, the group traveled to the Mahane Yehuda market (the souq) for schwarma and snacks. I had a delicious schwarma with hot peppers and - my new favorite topping - spicy mango sauce. Amazing! Afterwords, I bought some dried pineapple and coconut (which is cheap and tasty) and then grabbed coffee at a small cafe while waiting for the rest of the team to finish. I will definitely miss the food and smells of the souq once I get back to the US. Don't get me wrong - Eastern Market is great - it's just not Mehane Yehuda.

That evening (Friday) the team had Shabbat dinner at the home of our on-the-ground coordinator - Shelby. An American (now having lived in Israel for about a year) Shelby was kind enough to open her house to us for the night. After a great meal we settled in to watch the World Cup match between Ghana and Uruguay. Late that evening we retired to our hotel for the weekend - Ramat Rachel Hotel located in Kibbutz Ramat Rachel. A little bit secluded from the center of the city, the place was located on a hill offering gorgeous views of Bethlehem, Jerusalem and the Judean Hills.

Better Place Ctd

2010-07-10T11:45:00.007-04:00

As I'd mentioned previously (see here), last Tuesday the Smith team had the opportunity to visit Better Place, Israel's innovative electric car company. We departed Haifa around 9am for the drive to their facility in Tel Aviv. Located not far from the freeway (and ocean), Better Place was already humming from the moment we arrived - as tour groups passed through and saw, heard, and drove the Better Place solution.

"Brad investigating Better Place's futuristic showroom"
Photo by Kristin Thompson

As we'd arrived early, we helped ourselves to coffee and tea, while we waited for the tour to start. A little after 11am, the tour began. First we had a brief overview of the Better Place facility from our guide. Next, we were directed into an amphitheater to hear the spiel from a virtual "Shai Agassi". To say that this was a flawless presentation - delivered in a futuristic and otherworldly location - would be an understatement. At the end, the bottom of the stage rotated and the model car was displayed for us to see. Really impressive!

"Virtual Shai Agassi talks to us about the Better Place vision"
Photo by Kristin Thompson

If that wasn't enough, third we were then directed outside to a test track so that each of us could experience the feel of driving a truly 100% electric car - as well as see examples of the charging stations. Among our group, Asher Epstein was able to test drive the single Tesla Roadster on site, while the rest of us were driving Renault's. Though jealous of Asher, I was still lucky enough to be the first in my group to get behind the wheel!

"Better Place's electric cars getting recharged"
Photo by Kristin Thompson

To be honest, it wasn't what totally what I expected - though I don't mean this in a bad way. When I turned the car on for the first time, there wasn't the "normal" experience one expects when a car motor fires up. Instead it was completely silent. Additionally, as I drove out onto the track and increased speed - the car had "perfect" acceleration - as it had no gear box and hence no gears to shift between. All in all it was a very nice drive.

"The team talks with Mike Granoff overlooking the test track"
Photo by Kristin Thompson

After completing our test drives, we then were directed into a meeting with Mike Granoff (a friend of Asher) and the Head of Oil Independence Policies at Better Place. Mike was gracious enough to offer his time to discuss the Better Place model and field all of our questions regarding the company, the technology, and the business model. After a lively discussion (and one last look at the Tesla Roadster) we wrapped up our visit with a demonstration of the proprietary battery changing system that forms the core of the Better Place model.

"A full demonstration of the Better Place battery exchange system"
Photo by Kristin Thompson

Start-Up Nation

2010-07-08T11:18:00.000-04:00

This past Sunday we had the opportunity to meet with Saul Singer, co-author of the book "Start-up Nation: The Story of Israel's Economic Miracle." Saul gave a thirty minute talk to the Smith team, as well as interns from PresenTense, about both his book and also thoughts on what factors have driven the phenomenal success of the Israeli economy over the past twenty years. Here's a clip posted below of Saul talking about his book.

It's funny how quickly Start-up Nation has become the de facto story of Israel. No matter where we've been this summer or who we've talked to - without fail - everyone has spent the first few minutes of each meeting discussing this book. Have we read it? What did we think? It was definitely cool to finally hear this story from the author himself.

Political Issues Ctd

2010-07-07T16:53:00.001-04:00

Israeli politics are back in the news again - specifically in a way that is important to the United States. Since Barack Obama assumed the presidency in January last year, the Israel-US relationship has cooled considerably. After many false starts and canceled visits, Israel's Prime Minister, Benjamin Netanyahu, finally traveled back this week to Washington, D.C. for only his second meeting with his US counterpart, President Barack Obama. See below for a YouTube video of their Oval Office meeting from Britain's ITN News.

Hopefully the Obama and Netanyahu meeting will help begin to diffuse the rising level of animosity that has prevailed for much of the past year. Ultimately though, I'm certain it will take significantly longer for the average Israeli to begin to trust that President Obama has their (and Israel's) interests at heart. As the New York Time's reported yesterday:

Photographers clicked away in the Oval Office as Mr. Obama praised the prime minister as someone "willing to take risks for peace" and blamed the press for reports of discord. Mr. Netanyahu loosely quoted Mark Twain, saying, "Reports about the demise of the special relationship aren’t just premature; they’re just flat wrong."

As an American in Israel, the feeling among the Israelis I've met has been an adamant and clearly voiced dislike for our president. By all accounts, President Obama is persona non grata among most Israelis. Looking at the situation from my American perspective I definitely understand (though don't agree) with their assessment. As I've quickly come to find out, Israelis view our politics (and political leaders) only through the limited lens of how much we support (or don't support) their position regarding the Palestinian situation.

The perception (rightly or wrongly) is that President Obama is taking a more Pro-Palestinian stance than his predecessor George W. Bush. For Israelis that is unacceptable. It will be interesting to see how this issue (i.e. changing US-Israel relations) plays out over the coming months - especially as other more pressing regional issues (unrelated to Gaza, settlements in the West Bank, or the peace process generally) come to a head (e.g. Hezbollah and Lebanon, Iran's nuclear ambitions, American withdrawal from Iraq, etc.).

Video Three

2010-07-07T12:01:00.002-04:00

Our esteemed trip videographer, Stephen Kushner, has released his third video of the trip. Halfway through the program, this video is the third in a series (of five) depicting the Global Technology Entrepreneurship Fellowship for rising second-year MBA students from the Robert H. Smith School of Business at the University of Maryland College Park.

The Part 3 video (posted above) includes: commentary, company visits and interviews, as well as cultural experiences and camaraderie, from weeks 4-6. Once again, Steve's done a superb job distilling the spirit of our trip into 3 minutes of video. Thank you Steve!

Better Place

2010-07-06T10:33:00.006-04:00

Earlier today, the Smith team had the opportunity to visit one of the most interesting companies currently operating in Israel today, Better Place. Launched in 2007 by Shai Agassi, (who we had seen speak earlier this summer at the Technion) the one time future CEO of SAP AG, Better Place has already raised over $700 million dollars in venture backing. The goal of Better Place is to get the world off of oil - focusing on creating an innovative model for the car industry and a new generation of electric cars - whereby the battery is removed from the cost of the car. An idea which has the potential to be a real game changer.

Better Place has already entered into agreements with Nissan-Renault and China's Cherry Automobile to produce full lines of vehicles starting in 2011. Israel and Denmark are the initial target markets - with a planned roll-out in Australia shortly thereafter. In the next day or two, I'll provide some additional debrief and background on our visit (and a full recap of our test drives on their car track), as well as our other company visits. In the meantime here's a video that gives a great overview of the firm and its mission.

Cleantech Visits

2010-07-05T00:01:00.001-04:00

Once again the Smith team was on the road for a day of company visits - this time focused on cleantech, medical device, and consumer goods firms. On Wednesday morning, we departed from our home in Haifa. Our first stop of the day was the cleantech (agribusiness) firm, Kaiima. Afterwords, we traveled to Misgav for visits with The Misgav Venture Accelerator and Signal Business Development. Later that afternoon, the team traveled to the Naot Shoe Factory at Kibbutz Neot Mordechai in the Upper Galilee.

After a long drive (due mostly to traffic), we arrived in Kfar Tavor and our first meeting of the day, Kaiima. Formerly - Biofuel International - Kaiima was founded in 2006 and is located in the Galilee region of northern Israel. They are an agro-biotech company that develops and uses proprietary, non-transgenic, technologies to boost inherent crop productivity. In particular, the company has developed a Clean Genome Multiplication (CGM™) technology to produce new, non-genetically modified, crops with dramatically improved productivity and improved land and water-use efficiencies. Use of these high-performance varieties and thoughtful agricultural practices can enable farmers all over the world to generate more food and more energy, while sustaining resources.

Photo by Stephen Kushner

Our host for the morning was Dr. Doron Gal, the CEO and co-founder of Kaiima. Dr. Gal walked us through a presentation on the history of the firm. Financially, the firm is funded by one of the venture capital firms we visited previously this summer, DFJ-Tamir Fishman. After Dr. Gal's presentation, he answered questions on the underlying technology - its current potential - and also possible future research and development plans. Following the presentation, we had the opportunity to see Kaiima's greenhouses in person. After a short 10 minute drive from their offices, we were on-site. In person, the company's technology was even more impressive than ever could be communicated through slides alone.

Photo by Daniel Branscome

From Kaiima we traveled to our next meeting of the day in Misgav. The Misgav Technology Center (now known as The Misgav Venture Accelerator), was founded in 1992 as an incubator with a focus in medical devices, biotechnology, and pharmaceutical companies. Originally founded publicly by the local council in conjunction with Rafael, Misgav was recently partially privatized through a $2 million investment from The Trendlines Group (a seed-stage investment and consulting group). Our host was Steve Rhodes, Chairman and CEO at The Trendlines Group. Steve spent much of our time with him walking us through Misgav's various portfolio companies - explaining their investment from start to finish.

Photo by Stephen Kushner

Misgav currently has 11 incubated companies and 12 “graduate” companies (i.e. pre-revenue). Misgav provides not only capital, but management experience, work space, and legal and accounting services for incubated companies. Their focus is on market research and potential, and in evaluating prospective companies they focus on both the underlying technology, and the market potential. After talking with Steve we then were joined by Tina Ornstein, the CEO of Signal Business Development. The consulting subsidiary of The Trendlines Group, Signal's job is to to provide the structure and market know-how to help Misgav's incubator companies make the leap to the next level. Tina provided a brief overview of a typical Signal engagement and the key factors she focuses on for any given project. All in all, it was a very informative and engaging series of meetings.

Photo by Stephen Kushner

The last visit of the day was to the Naot Shoe Factory at Kibbutz Neot Mordechai. The team arrived at the factory in the late afternoon. Opened in 1942, Naot started out as a small kibbutz factory producing work boots. Currently, it employs 160 workers and designs a new line of footwear every year. Their products include a variety of shoes and sandals for men, women and children with special insoles that conform to the shape of the wearer's foot. Naot exports its products to countries worldwide with eighty percent of its products are sold outside of Israel. Major markets include the United States, Canada, Germany and Australia.

Photo by Stephen Kushner

After a brief (and somewhat impromptu) tour of the Naot factory, a few team members bought shoes, some for themselves and others as gifts. Shortly thereafter, the team hopped in the bus for the ride back to Haifa - another productive day of company visits in the books.

Second Recap

2010-07-03T08:57:00.002-04:00

Another three weeks have passed since our arrival in Israel. The time continues to go by extremely quickly and a lot has transpired in this very short period. As such, I think it's time for another brief summary - for readers both new and old.

Week 4: I wrote about our first class presentations to Israeli venture capitalists at the Technion here. Additionally, the fourth week found the Smith team traveling to Jerusalem during the middle of the week for the Hi-Tech Investment Conference, which I blogged about here and here. Additionally, Israel's Prime Minister made a surprise visit to the conference, which I posted about here. The weekend found the team traveling back to Jerusalem once again - this time for tours of the city's cultural and historical sites.

Week 5: For week five, the Smith team traveled for company visits in Jerusalem (here) and Be'er Sheva (here). Later in the week we went to a speech by Better Place's Shai Agassi at the Technion. This same week I also wrote about our esteemed photographer Kristen Thompson and also posted the latest trip video by Stephen Kushner. Finally, I blogged about the various meetings we've had with entrepreneurs since arriving in Israel. On the weekend, the team traveled to the Galilee and Golan (here, here, and here) - touring Tsfat and rafting the Jordan River. We had a BBQ near Gamla and a water hike at Nahal Yehudia.

Week 6: In the sixth week, the team continued our travels in the Galilee and Golan. We visited Nazareth and the Druze villages, before returning to Haifa. Back in class at the Technion we presented on our "Go to Market" plan. On the weekend, we had free time to travel or relax. Some of us traveled to Bethlehem and the West Bank, while others decided to relax. For me, I used the free weekend to travel and see my wife in Europe. Read about all of our free weekend travels - both inside and outside of Israel - here.

Free Weekend

2010-07-02T11:44:00.000-04:00

After almost six weeks of work and travel throughout Israel, the team was ready for some down time and relaxation! For some of us, that meant an opportunity to travel to other destinations both in Israel (not included in the main agenda) and abroad (e.g. Europe), while for others the weekend was time to catch up on sleep and visits to the beach.

Three members of the team - Stephen, Sean, and Kristin - decided to visit Jerusalem, Bethlehem, and the West Bank. Departing early on Friday morning, the group arrived in Jerusalem after about an hour and a half. In Jerusalem the three went to the local bus station for transfer into the West Bank. The trip south was relatively without incident - though there were two brief stops by the Israeli military - who checked Palestinian work permits. In Bethlehem, the group stayed overnight at a hostel located in the Dheisheh Refugee Camp. Established in 1949, this camp is currently home to about 14,000 residents.

Photo by Sam Mugraby (photos8.com)

On Saturday the group visited the Church of the Nativity, the Mosque of Omar, as well as other local historical sites - before returning to Jerusalem late that evening. In Jerusalem they stayed at the Citadel Youth Hostel - which had an amazing view of Jerusalem's Old City. Sunset on the roof was quite spectacular! Late on Sunday - after some more exploring - the group caught the late bus back to Haifa. All in all, this trip was a pretty cool experience!

Photo by Stephen Kushner

For me, this weekend was an opportunity to see my wife, Kim. After changes to Kim's work schedule, we decided last-minute to meet up in Europe during my free weekend. I flew out from Tel Aviv early Friday morning, arriving in Zürich, Switzerland around 8am (Kim had arrived from the US the previous day). After renting a car, I drove to my wife's hotel. We had a quick breakfast and then hit the road for Lausanne. I opted to take us through the Swiss Alps - from Zürich to Luzern and then on to Gstaad via Interlaken. Once we came down from the mountains, we drove along Lac Léman, arriving in Lausanne around 5pm.

Photo by Daniel Branscome

On Saturday, Kim and I went to Broc and Gruyères - the chocolate and cheese capitals of Switzerland respectfully. After lunch in the town of Charmey, we toured the Cailler factory. Now a subsidiary of Nestlé, Cailler was the first Swiss chocolate company, founded near Vevey in 1819. Afterwords we toured Gruyères Castle and sampled some local cheeses. Dinner was back in Lausanne. On Sunday, we had a pretty casual morning, then an afternoon BBQ at a family friend's place in Lutry. Monday found us on the road to Chamonix-Mont-Blanc - where we had an hour long hike to a beautiful alpine glacial lake.

Photo by Daniel Branscome

On our final day we departed Lausanne after lunch for the drive back to Zürich. This time, we went though the Jura past Lake Neuchâtel. Since we had some time before our flights, we decided to bypass Zurich proper and drive north into Germany to the Rhine Falls. After some time touring the site - Europe's largest waterfall - we returned to Zürich and grabbed dinner. Late that evening, I caught my flight back to Israel. Upon landing in Tel Aviv, I caught the train to Haifa, arriving at our house in Ramat Eshkol around 5am. What a weekend!

Galilee To Golan, pt3

2010-06-30T00:01:00.013-04:00

Sunday morning and we were off to another adventure! From our hotel, we drove to Nahal Yehudia off Highway 87. Nahal Yehudia is part of a reserve, which includes 11 trails, such as Nahal Zavitan, the Meshushim and the Gamla, which includes the remains of the Jewish town that fought against Vespasian during the Jewish Revolt in 66 CE.

Photo by Stephen Kushner

The Nahal Yehudia hike was not extraordinarily difficult - but it definitely required some skill - as there was a place where we had to descend down a shear rock face next to a waterfall and swim across a deep pool before continuing on the trail. The flowers were in bloom and the water was cool. All in all, it was about a three hour trek, but well worth the effort!

Photo by Stephen Kushner

Some of the team had opted out of the hike. That being said, we had already coordinated to meet up that afternoon at Keshet Yonatan, a moshav in the Golan Heights. Keshet has a very interesting history. Established in 1974 shortly after the Yom Kippur War by Hapoel HaMizrachi near the Syrian city of Quneitra, the community is a thriving community in an otherwise uninhabited area.

Photo by Kristin Thompson

Asher and his friend (whose house we were now at) had coordinated over the previous months for a shochet - a religious Jew who is duly licensed and trained - to prepare and slaughter a sheep for a traditional kosher BBQ (shechita). The fire pit had been dug the preceeding day. Upon our arrival, the boy scouts on our team (me included) quickly went to work erecting a tent for the shochet to perform his duty.

Photo by Kristin Thompson

While we waited, our guide, Meni, took most of the team for a tour of the moshav and the surrounding area. I opted to stay back and call my dad - since it was Father's Day. Those that did go, said it was well worth the trip. Located nearby was an abandoned Syrian military outpost - a spooky reminder of the conflicts that have not to distantly plagued these lands. In the distance, the team could see smoke - which was apparently from army maneuvers by the IDF. Interestingly, the team also saw a UN truck while out - as the UN still administers a cease-fire boundary zone between Israel and Syria.

Photo by Kristin Thompson

Back at the moshav, once the shochet arrived he gave the assembled guests a brief overview of kosher laws and traditions. We then relocated to the outdoor tent. The killing itself was almost instaneous. The preperation took another 45 minutes - and quite a few on the team helped in this process. After the shochet confirmed the animal as kosher, we put the carcass on a spit and began the BBQ. Sean Luke did an admirable job tending the fire.

Photo by Kristin Thompson

Four hours later, the meat was finally ready to eat. Don Mayer took over the carving duties and people started to chow down. We had fresh pita, potatoes, fried onions and other fixings. Everything was amazing! In an already busy and exciting weekend, this BBQ was the highlight for many in the group.

Photo by Kristin Thompson

That evening that team was back at the Ha'On guesthouse for our final night in the Galilee. The next morning, Monday, the team departed back to Haifa. Along the way we had a few final stops before our weekend trip concluded. The first stop was in Nazareth. Known as "the Arab capital of Israel," Nazareth is extremely important to Christians, as it the childhood home of Jesus. In Nazareth we visited the Church of the Annunciation, which marks the site where the Archangel Gabriel announced the future birth of Jesus to the Virgin Mary. We also visited The Church of St. Joseph's Carpentry, which occupies the traditional location for the workshop of Saint Joseph.

Photo by Kristin Thompson

Next we stopped in Daliat el-Carmel, which is one of the largest Druze settlements. Home to The Abu Ibrahim Shrine, this was definitely an interesting stop. Just on the outskirts of Haifa, our final visit was to the Morad Winery. Not to be confused with a traditional grape winery, Morad is unique in that it focuses on producing wine spirits from many other fruit sources - e.g. honey, pomegranates, apple, melons, dates, etc. It wasn't for everyone, but the free samples went a long way towards allaying people's concerns.

As we pulled back into our house in Haifa, everyone was happy to be home. That being said, we all felt that it had been an amazing weekend. Looking back, it's hard to believe everything we'd seen and done. Awesome, but exhausting.

Galilee To Golan, pt2

2010-06-28T00:01:00.011-04:00

We awoke early on Saturday morning for another day of touring in the Galilee region. In particular, the plan for the day was to tour the many sites of primary importance to Christianity - as this was the land in which Jesus lived for much of his adult life. After a quick, but tasty, breakfast at our hotel, we were off to our first stop of the day, Capernaum, situated right along the northwestern coast of the Sea of Galilee.

Photo by Kristin Thompson

Our tour guide, Meni, brought us first to the ruins of Capernaum's ancient synagogue, where he gave us a very detailed description of the sites history. Afterwords, we walked to House of Saint Peter. Now in ruins, the village of Capernaum has a long and complex history. Dating originally to 150 BCE, Capernaum factors into the New Testament in numerous places. In the Gospel of Luke it was reported to have been the home of the apostles Peter, Andrew, James and John, as well as the tax collector Matthew. According to Luke 4:31-44, Jesus taught in the synagogue in Capernaum on the Sabbath. In the Gospel of Matthew the town was reported to have been the home of Jesus. According to Matthew 8:5-13, it was where a Centurion asked Jesus to heal his servant.

Photo by Kelley Harris

From Capernaum we once again returned to the Jordan River - for the second time in two days - this time to the river south of the Sea of Galilee. This is an area that holds significance to Christians - especially many of the evangelical denominations. It was in this area that Jesus was supposedly baptized by his cousin John the Baptist. After a brief stop here, we stopped at a nearby fresh food market (definitely not a normal tourist stop) where we picked up dates, olives, spices, and my personal favorite - halva. For those not familiar, halva is a sesame based snack - that is often combined with other things like pistachios, coffee, and cocoa. It is a staple of Israeli life and is just plain delicious!

Photo by Kristin Thompson

We then hit the road back to the city of Tiberias. Our activity for the afternoon was an hour long cruise on the Sea of Galilee. The weather was fantastic - clear blue skies - hot, but not totally uncomfortable, especially with the light breeze on the water. Honestly - as an aside - the weather since we've arrived in Israel has been nothing sort of amazing. No rain, sunny every day. To be sure, it's been hot - though nothing a southern boy like myself can't handle. Following the cruise, we stopped for lunch at Kibbutz Ein Gev and then returned to our hotel.

Photo by Kristin Thompson

After a change and a short rest, some people elected to stay at the resort and relax. Most of the team however, departed for the Hamat Gader Springs. These are natural hot springs located in a small sliver of Israeli controlled territory right at the territorial junction of Syria, Jordan, and Israel. To get there you drive down a very steep and winding road - on both sides are the remains of the many battles that have been fought there in the Six-Day War and Yom Kippur War. Signs warning about land mines were everywhere.

Once one arrives at the hot springs, one quickly forgets the dangers surrounding it. Used as a natural spring even during Roman times (the ruins are on site) the current springs is a more modern facility constructed in the late 1970s. Smelling slightly of sulfur, the pools were almost 120+ Fahrenheit - over 20 degrees warmer than the current outside temperature. Interestingly, strange as it may seem, once one gets into the water, it quickly becomes very comfortable. I really liked it - and I'm pretty certain I wasn't alone among the team.

For dinner that evening, the team hopped into the bus back to Tiberias. This time, we had an opportunity to see a little bit of the town as we searched for a restaurant. We eventually settled on a hole-in-the-wall kabab shop. Unbelievably smokey, the place was a real find! The place didn't really have any good options for us to sit together, but Meni and Gil, our two Israeli experts said, "grab tables and set 'em up on the sidewalk." A few minutes later and we were ready to go. A great end to another terrific day!

Galilee To Golan, pt1

2010-06-26T00:01:00.005-04:00

Another weekend, another tour! Once again the Smith team was off to explore Israel. This weekend was one many of us had looked forward to from the very beginning. From start to finish, our three night trip was packed with activities, concluding late Monday evening.

Photo by Stephen Kushner

Early Friday morning, we left our house in Haifa for the trip east to the Galilee. Our first stop of the day was the city of Tsfat (also known as Safed), where we had a walking tour of the old quarter. Tsfat is one of the highest cities in Israel - and has been the capital of the Galilee region for many centuries. Interestingly, Tsfat is a city that wears many hats. It is a very religious city - and since the 16th century has been considered one of Judaism's Four Holy Cities, along with Jerusalem, Hebron and Tiberias. Most importantly, it is home to The Abuhav Synagogue (which we visited). More recently, Tsfat has also become known for burgeoning artist's colony that is located along its many dusty alleys.

For lunch many on the team (myself included) grabbed a bite to eat from an Yemenite Jewish food vendor. He and his wife were definitely characters - singing and having a great time - even as he prepared our food. The dish, lahuh, he served had a similarity (at least in shape, though not in flavor) to pizza - though the spices that he ladled liberally onto it had a tremendous kick. Quite possibly one of the spicier dishes I've ever had. It really took a long time for the heat to finally wear off.

After lunch we headed north and east from Tsfat for the Jordan River. Our next activity - and one that we were all pretty excited about - was a two hour rafting trip. Our group divided into a few separate rafts and rowed lazily down the currents. By the end we were all completely soaked. The river was definitely more akin to a stream (at least in comparison to the Potomac), but it was still a lot of fun.

From the rafting take out point we rejoined our tour guide, Meni, who took us to the final stop of the day, cycling in the Hula Valley. The Hula Valley is a gorgeous part of Israel. Focused almost entirely on agriculture - and formed after the Israeli government drained local swamps in the 1950s - the area lies in a depression between the Galilee to the west and the Golan to the east. The team arrived at a small nature reserve - collected rented bikes - and went for an hour long ride. Given the stifling heat, the bike ride was quite a work-out, albeit one everyone seemed to enjoy.

Photo by Kelley Harris

That evening we arrived at our lodgings for the weekend - the Ha'On Village - a tourism and resort kibbutz located on the southern shore of the Sea of Galilee. The place - though nice - had a decidedly 1970s vibe to it. The Lost fans among us all immediately commented that it looked like the Others village. That being said, we were all still pretty content!

Our Tag Cloud

2010-06-25T15:35:00.000-04:00

After - now four weeks in Israel - the Smith team has seen and done a lot! If you can believe it, with my most recent post, I passed the 12,000 word mark for the blog. That's a lot to wrap my mind around (it's equivalent to over 35+ pages) especially given that at this point we're only a little under half-way done with the program. I guess 30,000 words isn't out of the question. Anyway, to put this in perspective, I came across a cool web app - Wordle - that I think helps capture the essence of what we've been up in an interesting way. Enjoy!

Image by Daniel Branscome

As you can see, there are some key themes that keep appearing (not accidentally I might add) over and over. This program - though it has provided access to a wide variety of activities and events - has maintained a core focus on technology and entrepreneurship.

The Entrepreneurs

2010-06-24T00:01:00.004-04:00

Over the past few weeks, the Smith team has benefited from a number of impromptu on-campus meetings and events at the Technion. I've covered some of these in previous posts - such as the bi-weekly e-club meetings, the business ethics seminar, and the Shai Agassi speech. Additionally, in two other instances we've been able to meet with a pair of established Israeli entrepreneurs and discuss with them, both their current and future ventures. These two meetings were very interesting and I think it's definitely worth relating a little about each meeting and describe each entrepreneur.

Photo by Stephen Kushner

A few weeks back we had a chance to meet with Gil Perlberg. Formerly a VP for Business Development at Traceguard, an Israeli military and defense technology firm, Gil is currently the CEO & Founder of a new start-up, Ceronyx. This firm, Ceronyx, develops ceramic nanocomposites that address the increasing demand for advanced ceramic products in high growth fields, such as ceramic armor, cutting tools and medical applications, including ceramic implants for the hip and knee joints. Ceronyx's development is based on a proprietary technology platform developed by Prof. Wayne Kaplan, from the Technion - Israel Institute of Technology. This is still very early stage - which made all that more interesting.

Last Thursday, we met with Dr. Ze'ev Ganor. Currently an adjunct professor (and one of our judges in class) at the Technion, Ze'ev has been a successful entrepreneur for many years. Over the course of an hour, Ze'ev walked us through his many past ventures, covering both his successes and failures. After his stint in the Israeli military and college at the Technion, Ze'ev began his career at Computer Consoles Inc. (CCI) a US-based voice processing and computer software firm. Through a connection at CCI, he was a principal investor with a start-up that developed a new medical technology, Digital Subtraction Angiography (DSA). This technology - a precursor to the MRI - was sold to Elscint for $70 million after 4 years. After this success, Ze'ev had the entrepreneurial bug. Other significant investments and start-ups Ze'ev has been involved with have included ChipX, Nanomotion, and Fiberzone.

Altogether, these meetings were a great opportunity for the Smith team to talk one on one for Q&A with two highly active entrepreneurs. Both Gil and Ze'ev - though they come from very different backgrounds - offered us a terrific inside look at the many diverse challenges faced by entrepreneurs and early stage investors.

Company Visits, pt2

2010-06-22T00:01:00.004-04:00

After our meeting with Glen Schwaber from Israel CleanTech Ventures, we departed Jerusalem for the trip south to the city of Be'er Sheva. As we drove, the group debriefed from our earlier meeting and also prepared questions and exchanged information in preparation for our two upcoming afternoon company visits.

Photo by Kristin Thompson

At the time, unbeknown to the team, our group's driver had mistakenly taken an unintended detour on Israel Highway 60, which cuts directly through the heart of the West Bank, past the cities of Bethlehem and Hebron, before reentering Israel proper just outside Be'er Sheva. We were all definitely caught off guard when - after two hours of very fast driving - we entered an armed checkpoint to reenter Israeli controlled territory. Definitely an interesting experience, to say the least! I would write more, but that story is for another time.

After a quick schwarma lunch at a local mall, we arrived at our second meeting of the day, Netafim. Founded in 1965, Netafim is jointly owned by three kibbutzim - Hatzerim, Magal and Yiftah. As of June, 2010 they have over 2,000 employees, operate in 112 countries, and have annual sales over $400 million. Netafim is the global leader in smart drip irrigation solutions for a sustainable future. Since introducing the world's first drip irrigation solutions they have led the way by developing products that help our customers optimize results.

Photo by Kristin Thompson

Our host and guide at Netafim was Naty Barak, the Head of Sustainable Development and a 30+ year veteran of both Netafim and the Hatzerim kibbutz. Naty offered the Smith team a fantastic overview of Israel's first cleantech firm (before anyone even knew about sustainability or clean technology), its history and its future. After a 20 minute presentation, covering the technology of drip irrigation, as well as a few current case studies of its use and impact in global agriculture, we departed for a tour of the Netafim factory. We walked the production floor, inspecting up close each machine along the way.

Photo by Kristin Thompson

Our next visit was to Yitran Communications Ltd., another Be'er Sheva based company. Yitran is a company based around power line carrier technology. In particular, they produce fabless semiconductors and integrated circuits that allow for command and control applications including Energy Management, Automatic/Remote Meter Reading, Home/Building Automation, Switching and Lighting, HVAC Control, Street Light control and more. Now 10+ years since its creation, Yitran is still looking for its first big win.

Amit Grauer, Yitran's current VP of Product Management played host to the Smith team during our visit and walked us though Yitran's short, but eventful history - walking us through its ups and downs - and explaining the path they see to eventually achieving success in the future. As many in our group aspire to become entrepreneurs in the future - it was certainly interesting understanding the false starts, missed opportunities, etc. that come with any new venture. Yitran is certainly an interesting company with a valuable product. The question is twofold though: 1) Can they convince the right industry players to adopt them as the standard? and 2) Can they stay afloat long enough to see the first part become reality?

The weekend in Jerusalem and Be'er Sheva was highly rewarding. By the time we rolled back into Haifa late Sunday night - without a doubt - the whole team was exhausted. That being said, everyone agreed that they wouldn't have missed anything we'd done.

Company Visits, pt1

2010-06-21T00:01:00.003-04:00

Once again, I'm a few days later than I'd like writing about one of our many events. As is probably already evident, we've had a really packed schedule this summer in Israel. It seems like at any moment we've been on the road - always either heading to or from our next engagement. From technology conferences and historical sightseeing, to company visits and business meetings, the Smith team has been busy, busy, busy!

Anyway, on to the issue at hand. Last Sunday, June 13, we had the opportunity to engage with three different Israeli companies. In our first meeting we met one-on-one with a founding partner of an Israeli venture capital firm at our hotel in Jerusalem. In the other two we did so through on-site meetings and visits at each of the other two company's headquarters, both located in the city of Be'er Sheva.

Photo by Kristin Thompson

Our first meeting of the day was with Israel CleanTech Ventures (ICV). Established in 2006, ICV is the first Israel-focused cleantech venture capital fund - dedicated to providing value added growth capital to entrepreneurs specializing in energy, water, and environmental technologies. ICV raised $75 million for its first fund in 2007, drawn from a diverse (predominantly European and American) client base, which included Robeco, Piper Jaffray, as well as other institutional investors and family offices.

Our guide to Israel CleanTech Ventures was Glen Schwaber, a founding partner and originally a native of Boston, who emigrated from the United States to Israel in 1994. Glen has a wealth of experience in the Israeli investment community, having begun his career at Jerusalem Global, a private equity firm for Israeli hi-tech start-ups before transitioning to Jerusalem Venture Partners, one of the most successful venture capital firms in Israel, and then later founding ICV with two other initial partners.

Unlike a few of our previous VC meetings - where our hosts spent a significant portion of the meeting talking generally about the market in Israel - Glen dove right into a detailed discussion of a few current portfolio company investments - as well as the Israeli cleantech sector in general. Over the course of about an hour, Glen walked our group through an analysis of ICV's strategy, including a thorough breakdown of their investment criteria, market approach, and screening process.

There were two portfolio companies I found particularly interesting. The first was CellEra, which is a a fuel-cell company with a revolutionary new type of fuel cell, the Platinum-Free Membrane Fuel Cell (PFM-FC). CellEra's solution eliminates major cost components in current fuel-cells, such as very expensive platinum. The second investment was in a firm, Scodix, which has developed a revolutionary Digital UV Embossing press. The machine and associated process are inherently environmentally friendly - the process requires no plates or silk, minimum electricity power, and results in virtually no printing waste.

All together, our meeting with Glen was really interesting, and no doubt about it, ICV's current portfolio investments (and investment strategy generally) are really cutting edge!

The Electric Future

2010-06-19T00:01:00.001-04:00

This past Wednesday we had an opportunity to attend a speech at the Technion by Mr. Shai Agassi, founder and CEO of Better Place. Before starting Better Place, Shai was previously the President of the Products and Technology Group at SAP AG. He resigned from this position in March 2007 to pursue interests in alternative energy and climate change - ultimately leading to his founding of Better Place. Per TED's online profile:

[Shai's] approach to solving the puzzle of electric automobiles could spark nothing short of an automotive revolution. Through his enthusiastic persistence, Agassi's startup Better Place has signed up some impressive partners - including Nissan-Renault and the countries of Israel and Denmark.

The topic and the content of Shai's address was very compelling. Additionally, since the Smith team will be visiting Shai's company, Better Place, later this summer, his speech was a perfect introduction prior to our visit. To give you a taste of what we heard, Shai gave a speech very similar to one he had given previously at TED, which I've posted below.

Thousand Words

2010-06-18T00:01:00.001-04:00

Over the past month, I've tried my best to report on all aspects of our Smith team's Israel journey. Without a doubt, my efforts would have been significantly weaker had I not had access to the amazing photography of Kristin Thompson. Time and time again, Kristin's photos have brought to life our trip in ways my words never could.

"Our illustrious photographer - working her craft"
Photo by Anne Bisso

Kristin is an accomplished photographer, who has an real eye for the craft. Her skill behind the camera is apparent to almost everyone, even after only a cursory look at her photos. To see more of her work (both regarding Israel, as well as other projects) please check out her website at www.kristinthompson.com.

A Video Record Ctd

2010-06-17T16:24:00.001-04:00

Since arriving in Israel, one of our team members, Stephen Kushner, has been hard at work producing a video series, introducing the program, interviewing team members, and capturing the sights and sounds of our trip to Israel. Part 2 of the video series (posted below) includes: commentary, day-in-a-life, pitching to venture capitalists, company visits and interviews, hi-tech conference highlights, cultural experiences, and camaraderie. Enjoy!

Jerusalem Visit

2010-06-15T17:50:00.009-04:00

After a day back in Haifa for our weekly class at the Technion, on Friday morning the Smith team was back on the road for a full weekend of touring and sightseeing. In the morning we were met by our guide, Israel, who gave us a preview of the days activities as we sped down the highway to our first stop of the day, Caesarea.

"Our guide Israel weaves a story about ancient Caesarea"
Photo by Kristin Thompson

Planted firmly against the coast, halfway between Haifa and Tel Aviv, Caesarea is an ancient port city that dates to the time of Herod the Great – about 22 BCE. The ancient city itself is no longer inhabited - as the last occupants, French crusaders under Louis IX - were forced to flee when the city was put to fire by Baybar invaders in 1251 CE. Literally lost to the sands, the city was rediscovered and its secrets uncovered in the 1940s due to the financial generosity of Baron Edmond Benjamin James de Rothschild.

"Modern concerts in Caesarea's ancient amphitheater"
Photo by Kristin Thompson

Our first stop in Caesarea was the Roman aqueduct that provided fresh water to the city for over a thousand years. From there we proceeded to the old city itself, where we visited the Roman theater, hippodrome, and palace (which was possibly the former residence of Pontius Pilate). As we walked back to the van, we passed through the city walls and across the moat, which were both constructed by the Crusaders. All in all, Caesarea was awesome!

"Driving through East Jerusalem"
Photo by Kristin Thompson

From Caesarea we drove directly on to Jerusalem. Since it was Friday, a lot of tourist sites were closing at sunset for Shabbat, so we were in quite a rush to get into town. We drove into the Old City and parked right next to the City of David – where the Biblical King built his palace and capital in 1000 BCE. The key attraction at this famous archaeological site is Hezekiah's Tunnel. This tunnel, which runs for a little under half a mile is filled with about three feet of water at all times. We walked (in my case barefoot) through the tunnel before emerging on the other side in East Jerusalem. Following our underground trek (which seemed to go on and on), we proceeded to the promenade overlooking the city.

"Looking out at Old Jerusalem from the Haas Promenade"
Photo by Kelley Harris

We went next to our hotel for a brief rest before Shabbat dinner. Max and Sue Singer (parents of Saul Singer, the author of Start-up Nation) were kind enough to invite the entire Smith team into their home to participate in this weekly Jewish tradition. Dinner began with the serving of homemade challahs. Afterwords, this ritual was followed by Kiddush, the blessing of the wine. Max and Sue then led us through a number of other songs and readings before we finally began the meal in earnest. Altogether, everyone had a great time!

"Shabbat dinner with Max and Sue Singer"
Photo by Stephen Kushner

In the preceding days, I had been coming down with a bit of a cold. A bug of some sort had been making its rounds around the team - and unfortunately my time arrived sometime late Friday night. I woke Saturday morning feeling pretty horrible - so somewhat reluctantly I opted to skip the tour that morning. I did get a pretty good report from the team later that evening though, when we all convened for dinner.

"Old Jerusalem near the Jaffa Gate"
Photo by Kristin Thompson

On Saturday the group met our guide, Israel, at 9am in the hotel lobby. From there the group went to the Old City, this time for a more thorough tour of its many historical sites. The team walked the Via Dolorosa, visited the Church of the Holy Sepulchre, and shopped (and ate) in the Muristan Souq. From there they climbed the ramparts and walked the city walls, emerging just next to the Western Wall. The last stop of the afternoon was a short drive to the Mount of Olives – a site significant to both Jewish and Christian traditions.

"Fresh food at the always busy, Muristan Souq"
Photo by Kristin Thompson

I was feeling a bit better that evening so I opted to join everyone for dinner at Asher Epstein’s place. Altogether, the group was feeling pretty fired up about everything we’d seen and done so far this weekend. Additionally, this evening was especially important to everyone, as it was the England vs. USA World Cup match. Americans (myself included) have a funny habit of completely ignoring the sport of soccer (nee football) for 4 years and then suddenly remembering when the Cup comes around again. It may be the world’s sport, but it certainly isn’t America's sport. Anyway, the game started at 9:30pm, so many in the group decided to head to the The Lion’s Den pub to watch.

"Everyone celebrates as the USA battles back against England in the World Cup"
Photo by Kristin Thompson

Ninety minutes later the game was over and we (the USA) had forced England to a 1-1 tie. I’ve read that this was a fantastic result – as everyone had expected England to prevail. That being said, I have a hard time getting excited about a tie game. I mean, really? A tie? I think this fact alone is what makes it so hard for Americans to get behind this game. Someone has to win. Without a winner, what’s the point?

Anyway, one other cool outcome from the game: our esteemed photographer, Kristin had the previous photo featured in the Washington Post. Congrats, Kristin! All in all, Jerusalem was a blast! We got to see some fantastic historical sites, eat wonderful food, and watch the USA beat up on our cousins across the pond. It would be hard to ask for much more – well maybe the USA could have won rather than tied - but I digress.

The Prime Minister

2010-06-14T11:02:00.010-04:00

As promised, here is Israeli Prime Minister Benjamin Netanyahu addressing the 2010 High Tech Industry Association Conference last week in Jerusalem. The second part of Netanyahu's speech is posted in full at our team's YouTube site.

Hi-Tech Israel Ctd

2010-06-14T10:42:00.005-04:00

Early last week, the Smith team visited Jerusalem to participate in the 2010 High Tech Industry Association Conference. I covered our visit to the conference here.

Our video blogger, Stephen Kushner, captured some great highlights from the conference, including two panel discussions, as well as Prime Minister, Benjamin Netanyahu's keynote address (posted here). I've posted the two panel clips (with descriptions) after the jump.

In the first clip, Gil Sharon, President and CEO of Pelephone Communications, speaks about the challenges of being an Israeli company managing clientele around the world.

In the second clip, Yossi Vardi moderated a session on "The Role of Social Networks". The panel was composed of professionals ranging from the inventor of ICQ, one of the first instant messaging platforms, to the inventor of the "Away Message".

This video primarily concerns the privacy content of social network platforms and the role of protecting user content once a company does an initial public offering (IPO).

Hi-Tech Israel

2010-06-10T17:26:00.002-04:00

Well it's been a few days since my last post and the Smith team has been as busy as ever! After a relaxing weekend, we departed Haifa before sunrise on Tuesday for the drive down to Jerusalem to participate in the 2010 High Tech Industry Association Conference.

The conference, which ran for two days, was held at the Jerusalem International Convention Center and brought together industry professionals, technology experts, and venture capitalists. Starting at 9AM, the event kicked off with Israel's Mister of Finance, Dr. Yuval Steinitz, as well as other honored dignitaries remotely starting the Tel Aviv Stock Exchange.

"The opening bell of the Tel Aviv Stock Exchange"
Photo by Stephen Kushner

Topics covered during the conference ranged from the future of mobile computing to strategies for market entry into high-tech in China and India. Additionally, there were a number of headline speakers during the two day event including, the godfather of Israeli high-tech venture capital, Yossi Vardi, and Israel's Prime Minister, Benjamin Netanyahu.

"Prime Minister Netanyahu talks about Israel's technology future"
Photo by Stephen Kushner

During the two day event, the Smith team had an amazing opportunity to hear from key thought leaders in Israel's high-tech and investment community. Given our ongoing tech commercialization projects at the Technion, some of the contacts we made and presentations we heard had an immediate and practical resonance. Other speakers we saw were interesting more from a general professional development standpoint.

"The Smith team at the hi-tech conference"
Photo by Stephen Kushner

Given the compressed schedule during the two days in Jerusalem, we didn't have too much time to explore outside the conference. That being said, we did get a brief tour of the Old City (courtesy of the conference organizers) on Tuesday night - where we were to have a preview of the Festival of Lights (which was unfortunately canceled due to technical difficulties). We met our guide just outside the Jaffa Gate and then walked past the Church of the Holy Sepulchre, ending at a rooftop overlooking the Wailing Wall. Really impressive!

"Steve captures the Western Wall at night"
Photo by Stephen Kushner

On Wednesday night, after the end of the conference, the team met on Ben Yehuda Street - one of the more popular shopping streets in Jerusalem. We spent about an hour shopping and window gazing. Afterwords, we walked up to Sami's restaurant for a final dinner before hitting the road back to Haifa.

"The team enjoys an amazing schwarma dinner in Jerusalem"
Photo by Stephen Kushner

All in all, it was a very successful two days in Jerusalem! We'll be heading back for a more historical and culturally centered visit tomorrow.

First Presentations

2010-06-09T18:27:00.001-04:00

As I discussed back in the first week of our trip (here and here), groups of one or two of our Smith team have been partnered with an equivalent number of MBA students from the Technion. Together, our combined teams have been assigned technology patents - for which we are creating commercialization strategies. Last Thursday, June 3, we made our first presentations in class at the Technion. Our first presentation was focused on five potential applications of the technology, evaluating possible customers, suggesting hypothetical value propositions, market sizes, technological issues, and building revenue models. Our analysis was meant to establish a baseline for our project going forward.

"Me - surrounded by Asher and the VCs"
Picture by Stephen Kushner

Our presentations were conducted in front of a panel of Israeli and American venture capitalists. The Israeli culture (and the VC culture also for that matter) that we'd been told so much about, but hadn't quite experienced was in full effect. Time and time again during the night, each of us was put us on the spot, our analysis and assumptions totally dissected. We hardly had time to explain our next point before we were barraged with another set of questions. Everyone was definitely feeling the pressure!

"Don, looking pleased after presenting about his UAV tech"
Picture by Stephen Kushner

Despite the tough treatment, the presentations overall were still really well received. One VC, who had judged the same class the previous year said that the presentations were significantly improved. One or two of our Israeli classmates shouted out that this was because of "the Americans", which was a nice compliment. At 10pm, after the last team had finally finished presenting, we were all pretty wound up by the experience. That being said, everyone seemed to agree that it was one of the best experiences we've had so far in Israel.

First Three Weeks

2010-06-06T08:48:00.006-04:00

As we approach the end of the our first three weeks in Israel, I think it's probably as good a time as any to provide a recap of where we've been so far. I'll try and do this a few times this summer in order to fill in any new readers on anything they may have missed. Anyway, the past weeks have certainly gone by quickly. We've seen and done quite a bit. In fact, it's actually hard to believe how much we've been able to fit in to such a short amount of time.

Pre-Departure: in the weeks leading up to the trip I blogged here and here about the reasons why I believe Israel is important and what are the unique characteristics that have lead to Israel's economic and technological achievements of the past few decades. Start-up Nation - the unofficial handbook of our trip - was mentioned on a few occasions. On April 29, the team celebrated the beginning of the program, while also recognizing the contributions of the program's many generous donors, at an evening reception in Washington, D.C., hosted by Miles Gilburne and Nina Zolt.

Week 1: After months of planning and hours of travel, the Smith team finally arrived in Tel Aviv, Israel, passed through customs, and then made the hour long drive up the coast to Haifa - our home for the summer. The first few days were set aside for us to get acclimated to our new surroundings. The fact that we'd arrived during the holiday of Shavuot certainly helped keep things quiet that first night. By Thursday we'd had a chance to settle in and proceeded to the Technion for our first class and to meet our Israeli teammates. The projects were finalized and the patent creators presented on each of their technologies. On the weekend we toured the city of Haifa - the German Colony and the Baha'i Gardens - and then traveled north for visits to Rosh Hanikra and Acre.

Week 2: The second week began slowly - with Monday through Wednesday working at our office at the Technion. I blogged about the Israeli business culture here. On Wednesday we had a presentation from the Technion Entrepreneurship Club. Then on Thursday, we had our second class with presentations from the Technion incubator and our project leader Asher Epstein, among others. At the end of the week we departed Haifa for a weekend visit to Tel Aviv. Friday morning we had a brief meeting with Israel's Warren Buffet, Yossi Vardi. Later that afternoon, we went on a guided tour of the city - from Jaffa and Neve Tzedek to the Hacarmel Market. Saturday we were free to explore on our own - or head to the beach - as a few folks did. It was awesome! Before heading back to Haifa, on Sunday we had meetings at two venture capital firms, Tamir Fishman and AquAgro Fund, where we met with Moshe Levin and Hillel Milo respectfully. Altogether it was a busy but exciting week!

Week 3: At the beginning of the week a political and military incident drew the eyes of the world to the coast off of Israel and the Gaza Strip. Early on in the week, our resident video blogger, Stephen Kushner, posted the first (of five) major trip videos on the site. Wednesday found us once again at the Technion Entrepreneurship Club for a presentation by one of our program's benefactors, Rick Zitelman. Rick gave a talk on business ethics (here) from a Jewish perspective, as well as comments on investing in general (here). On Thursday we had our first major presentation of the trip. In class we gave 30 minute presentations on our technologies and five potential markets to a panel of local Israeli venture capitalists. [More on this event to appear later this week]. On Thursday, my photo from our house in Haifa was featured on The Atlantic. This weekend the team has been enjoying free time at the beach, while getting ready for next week, when we'll be heading to Jerusalem for the High Tech Industry Association Conference.

Ethical Investing, pt2

2010-06-05T14:43:00.010-04:00

In my previous blog post, I covered the first half of Rick Zitelman's presentation to the Technion Entrepreneurship Club on ethics and investing. After concluding his discussion of Jewish business ethics, Rick transitioned to a more general presentation on investing in Israel and investing overall.

"Anne, Kelley, and Don chatting with Rick Zitelman"
Photo by Kristin Thompson

For many years, Rick has been an investor in companies - as a venture capitalist - as well as a principal advisor to other investors and investment firms. Further, he has been (and currently is) an investor in Israeli companies. As such, he has a wide range of hard won advice to offer to investors - especially those looking to invest in Israel.

In regards to investing in general, Rick offered nine "rules" to live by ...

There is money and then there is SMART money.
Smart investors invest in people - passion and potential are critical.
Remember, it ALWAYS takes longer and costs more.
It's better to have more capital than less.
It's better to have a small piece of a big pie, than a big piece of a small pie.
Protect your IP, but remember, it takes a lot of money and time.
Play to your strengths and learn to work with your weaknesses.
There are three types of investors: Lead, Co-, and Passive.
Valuations are never easy. Take your time and do your homework.

As you can imagine, hearing Rick's thoughts about investing in Israel (specifically his views on the American perspective) was also of keen interest to the Israeli Technion students in the audience - especially those involved in high-tech start-ups - or those considering starting their own ventures. For them, Rick had a few key pieces of wisdom.

Investors look for reasons not to invest. Don't let poor communication be why.
Time differences can play havoc. Be prepared to work odd hours.
When dealing with America, Shabbat removes a significant portion of the week.
As a deal develops, it becomes good to have partners in both the US and Israel.

Rick concluded his talk by discussing a final criteria for new ventures in Israel. According to Rick, the Israeli government's Office of Chief Scientist (as well as many other local incubators) offer lucrative sources of early stage financing. However, he indicated that investors and firms should really do their homework before signing onto one of these partnerships, as there are significant pros and cons to following this path. The avenues available for exit can narrow if a firm accepts investment from these entities.

Rick's talk was really well received. He offered both the Smith School and Technion students a great overview of Jewish business ethics, investing, and investing in Israel.

Ethical Investing, pt1

2010-06-04T17:31:00.021-04:00

This past Wednesday, the Smith team had the opportunity to listen as one of our program's benefactors, Rick Zitelman, presented to the Technion Entrepreneurship Club. Rick - who maintains an apartment in Jerusalem - is in Israel for the next few weeks and took time out of his schedule to give a talk on three topics close to his heart, 1) business ethics from a Jewish perspective, 2) investing in Israel, and 3) investing in general. In fairness to the amount of information Rick covered, I'm splitting my coverage into two posts.

Owner and president of the The Zitelman Group (TZG), a Maryland merchant and investment bank, Rick has over 30+ years experience in the financial services sector. TZG provides asset management, investment and merchant banking, investment advisory and active investor services. Additionally, Rick is a principal at Valuation Services, a Washington, D.C. financial valuation firm. He speaks frequently on the topic of business ethics and corporate social responsibility. Further, Rick is a strong advocate for the University of Maryland, the Robert H. Smith School of Business, the Dingman Center for Entrepreneurship, Judaism and Israel.

The presentation kicked off with Rick leading a discussion on business ethics from a Jewish perspective. This topic was definitely of interest to our team - especially in light of the fact that we had all just completed Professor Lele's business ethics and social responsibility course this past term. As we came to find out, business ethics has long been considered an integral component of Jewish written law. From the Mishnah and Gemara to the Talmud and Mishneh Torah, all contain concrete advice on behavior in certain business situations.

"Individuals have a responsibility to conduct themselves in an honest and forthright way. Organizations, even while increasing profits, need to recognize some form of corporate social responsibility." - Business Ethics: A Jewish Perspective

Rick's presentation also incorporated a business case study as well. The meeting's participants (us included) broke out into separate groups and analyzed the case, as well as attempted to answer a few questions that had been provided.

"Rick Zitelman talks with an ethics breakout session"

Photo by Kristin Thompson

After a few minutes to confer with our group - and discuss the case in breakout sessions with Rick himself - he led us through a discussion of the case and possible options. Rick then supplemented this with the proscribed actions from a Jewish perspective. Altogether, it was definitely enlightening to explore and discuss this topic - and it helped us gain insight into an integral aspect of the Jewish and Israeli business mindset.

View From My Window

2010-06-04T04:23:00.020-04:00

For the past few years, I've been a regular reader of Andrew Sullivan's blog at The Atlantic. Andrew's political and social analysis is top notch, and though I don't always agree with everything he writes, I am always impressed by his thought provoking articles and the discussions his blog fosters.

Back in May 2006, Sullivan began a daily feature on his site that he called The View From Your Window. Originally started as a week-long experiment of reader submitted photos, the project quickly became a favorite of regular readers and has continued on ever since. Per his blog, here is the goal of this daily feature:

The point of the project is not to document snow fall in New Orleans, the aftermath of a hurricane in the South Pacific, or a beautiful sunset in the Arizona desert. The best window views are those depicting what you see everyday when you look outside. So show us - and every other reader - your world. Don't pretty it up; just show it as it is - a glimpse through the looking glass of a blog, at the world its readers live in.

This is really all it is - an opportunity for people to get brief looks into the daily lives of others throughout the world. Ultimately, this feature has been so successful, that last year it was turned into a book.

Anyway, what is the relevance for Smith in Israel? Our team has a pretty amazing view from our place in Haifa, so earlier this past week I submitted a photograph taken from the top window of our team's house to Andrew's blog. I really didn't think it had much of a chance to make the cut. Yet, lo-and-behold, out of the many hundreds of photos received daily, he selected mine for his Thursday post!

"The view from my window"
Photo by Daniel Branscome

Though my photo goes uncredited on his site (as are all other photos submitted to this feature) I think its still pretty cool that the Smith team's view of the world - at least for 9 weeks this summer - got to be shared in this way.

Venture Capitalists, pt2

2010-06-03T01:00:00.006-04:00

Following our successful vist with Moshe Levin at DFJ Tamir Fishman, we hopped in our bus and drove across Tel Aviv for our second meeting of the day. After a quick lunch, we made our way upstairs and into the offices of AquAgro Fund. This fund, which is a subsidiary of one of Israel's largest conglomerates, Gaon Holdings, is a venture capital fund focused on cleantech technologies and investments.

Our meeting was facilitated by one the fund's primary managing partners, Hillel Milo. Like our previous speaker, Mr. Milo is about as experienced as one gets in the Israeli venture capital industry. He co-founded one of the earliest VC firms in Israel. Further, he has a wealth of other venture and industry experience. Hillel has quite a presence in a room. He was able to present non-stop for 45 minutes, with no notes - easily calling up data and information from his mind - while at the same time keeping us captivated. By the end of our meeting we all wished we'd had more time to pick his brain.

"The team meets with Hillel Milo of AquAgro"
Photo by Kristin Thompson

Unlike the previous meeting we'd just attended, Hillel decided to focus specifically on a few of the current cleantech investments that AquAgro is engaged in right now. Further, Hillel gave us a great breakdown of the specific sectors that he believes constitute the cleantech market. Lastly, he gave us an overview of the primary criteria he (and his team) utilize when evaluating potential investments.

If our previous meeting had been about where Israel has been, our meeting with Hillel was about where Israel is going. For example, AquAgro is invested in a firm, Desalitech, which has invented a revolutionary method to create affordable and scalable water desalination. Another investment is in Evogene, a biotech firm that has created (and patented) over 400 novel genes to radically improve crop yields. One final company we discussed is Variable Wind, who has a technology that brings wind energy costs into parity with fossil fuels.

Altogether, our two meetings were both highly engaging and highly informative. Both were great introductions into the Israeli venture capital market. Further, each touched on both traditional and emerging investment spaces (e.g. cleantech). Next week, the team will be heading to Jerusalem to participate in a two day business conference focused on high tech.

Venture Capitalists, pt1

2010-06-02T14:43:00.006-04:00

I'm definitely quite a bit late in getting a post out about this, but every time I thought I'd have a free moment to start putting down my thoughts, I'd get distracted by something else. Anyway, better late than never!

This past Sunday, May 30th, the team visited two venture capital firms in the Tel Aviv area before returning back to Haifa in the late afternoon. Our meetings at both locations lasted a little over an hour, and in both instances we were given an opportunity to ask questions. Given the differences in each visit, I've decided to break up my coverage of each into two separate posts.

The first meeting was at DFJ Tamir Fishman, the local affiliate of Menlo Park, CA based Draper, Fisher, Jurvetson (DFJ). DFJ and its worldwide partner organizations (including DFJ Tamir Fishman) manage a portfolio of companies and assets worth approximately $6 billion. DFJ Tamir Fishman itself is actually the venture capital subsidiary of the larger Tamir Fishman Group, which is a full-service financial management firm.

At DFJ Tamir Fishman, our host and point of contact was Moshe Levin. Currently a managing general partner, Moshe is a 25 year veteran of the Israeli venture capital industry, having previously served as a partner at Pitango, Israel's largest VC firm. It was pretty clear from the get go that Moshe would be able to offer us a wealth of information and experience - and we were not disappointed.

Moshe's presentation was in some respects a recap of Start-up Nation. That being said, his presentation did dig into some prime examples of Israeli created technologies that many of us had not been aware prior to our meeting. I realize I've already gone into some of this in previous posts, but it still bares repeating.

It is quite extraordinary how many technologies - upon which our current global economy is based - that were created in Israel. To be honest, these contributions are drastically out of proportion relative to the size of this country, its population, or its economy. Listed below are a just a few of these technologies as well as the Israeli (or Israeli subsidiary) that was responsible for each creation.

Pentium PC - Intel
Centrino - Intel
IP Networking - RadWare, Allot
Flash Memory - M-Systems
Stents - Medinol
Generic Drugs - Teva
Voice Mail - Comverse
Instant Messaging - ICQ (Acquired by AOL)
Cable Modems - Libit (Acquired by TI), Terayon
Cordless Phones - DSPC (Acquired by Intel)
Cellular - TI
3G Cellular - Modem Art
VoIP - Vocaltec, AudioCodes
AntiVirus - Symantec
Firewalls - CheckPoint

Seriously, it is astonishing the range of technological innovations that have emerged from Israel over the past twenty years! From the internet, to personal and portable computers, to telecommunications, and medical devices, each of the above technologies was critical to the development and evolution of these markets and industries. Given their impacts, it would be hard to imagine a world in which these technologies had not been invented.

A Video Record

2010-06-02T03:45:00.027-04:00

Photo by Kristin Thompson

Separately, Stephen has also begun producing smaller videos related to specific company visits and speakers. The first of Stephen's videos, a series of brief comments from one of our first speakers, Yossi Vardi has been added to that previous post.

All subsequent videos will be displayed on this blog and also on YouTube. Part 1 of the video series is after the jump. Enjoy!

Political Issues

2010-06-01T19:22:00.003-04:00

As I'm sure everyone is now aware, a flotilla of ships heading to the Gaza Strip territory was raided yesterday by a team of Israeli commandos. The world media is now debating the legitimacy of the action, as well as the long term viability of the blockade of the Gaza Strip territory. Tensions are high and opinions on both sides are heated.

Given the growing significance of this incident over the past 48 hours, in the Mediterranean off Israel, I think it's worth taking a moment to offer some brief comments as to its affect on 1) our group, 2) our program going forward, and 3) on business in general in Israel.

First, as to any immediate impact on our group, there is none. In Haifa, where we are based, we are about as far from the Gaza Strip as one can get in Israel. Additionally, as of right now, there have only been limited protests in Tel Aviv, Jerusalem, and the occupied territories. The feeling is, as of right now, that cooler heads will prevail. Hopefully, this will now be resolved purely through diplomatic channels.

Second, as to the long term impact on the program, this is also a non issue. To be sure, we as a group are watching and following the news with care. That being said, the direct impact on us in Haifa is muted. From my perspective, these issues could conceivably be happing on the other side of the earth - as opposed to down the coast in Gaza.

Lastly, business as usual goes on in Israel. In this part of the world, things happen. If one were unable to quickly adjust, then one would get nothing done. For example, in Haifa during the 2006 Lebanon War, over 6,500 Qassam rockets fell throughout the region. My teammates at the Technion related that they continued going to work and university throughout this period, despite the threat. For myself as an American these reactions seem cavalier and reckless. For Israelis, it's a given. Life goes on.

I will be watching with interest and with care as this issue develops over the following weeks. For now however I will follow the example of my Israeli teammates, push forward and continue working.

Tel Aviv Weekend

2010-05-30T16:01:00.007-04:00

Once again, the Smith team found ourselves on the road - off to explore another part of Israel. Friday, after an early morning departure from Haifa, a relaxing drive down the coastal highway, and a morning meeting (detailed in the previous post), we were guided on a visit of Tel Aviv and the surrounding area.

The commercial and modern cultural center of Israel, Tel Aviv is a study in contrasts. The city itself is only slightly older than the modern state of Israel itself. Indeed, it was only founded a little over 100 years ago by a group of industrious Jewish settlers - literally built on top of a series of inhospitable sand dunes. However, Tel Aviv is directly adjacent to (and incorporates) the significantly older port city of Jaffa.

"Me, Sean, Anne, and Kristin by the seashore in Old Jaffa"
Photo by Kristin Thompson

It was in Jaffa that we spent the afternoon, strolling about and seeing the sights. In Jaffa, we saw St. Peter's Church, the Old Minaret, and the Ottoman Jailhouse. We walked past winding alleyways and half forgotten neighborhoods. Jaffa is no longer an active port, but its amazing location on the waterfront provides a beautiful view from the Mediterranean Sea back towards Tel Aviv proper.

"Me with the city of Tel Aviv in the distance"
Photo by Kristin Thompson

Adjacent to Jaffa is the Neve Tzedek neighborhood. Fashionable and trendy, this was a favorite section of Tel Aviv for many among us. Our walk back towards central Tel Aviv led through one of the city's largest open air souqs, the Hacarmel. In many ways, the market is no different from any other one might find in the world. Loud and crowded, and filled with all varieties of merchandise, both local and foreign in origin, markets like this one are a true experience for the senses.

"The sights and sounds of Tel Aviv's Hacarmel market"
Photo by Stephen Kushner

What really sets one market apart from another though is the local foods. For myself, this is the aspect of travel that has the most resonance. Really, look at these olives below and try and tell me it doesn't make you hungry! From vendors selling fresh produce and spices, to sidewalk chefs hawking hundreds of varieties of street food, this is where a market really differentiates itself. In Israel this means schwarma, falafel, and burekas. Not to miss out, I made sure to sample all three! Delicious.

"Some delicious looking olives in the Hacarmel market"
Photo by Stephen Kushner

To be honest though, these are really only the tip of the iceberg when it comes to Israeli street cuisine. As such, over the next few weeks myself and a few other adventurous teammates will be looking to try as many others as we come across. Personally, I can't wait!

Following our tour, we headed to our hotel. Our lodgings in Tel Aviv were pretty cool, too. Our hotel, the Hotel Cinema, was built in the famous Bauhaus style, and for years served as a movie theater (actually the city's first). After briefly showering and changing we headed out to sample the night life. Dinner was at Mike's Place - directly adjacent to the US Embassy. Then, we schlepped quickly across the street to La Mer - for nargila and drinks on the beach - a true Tel Aviv experience, not to be missed.

"The team enjoys dinner out at Mike's Place in Tel Aviv"
Photo by Brad Husser

On Saturday, we were free to explore the city. Some in the group opted to head to the beach, while others (myself included) decided to walk the promenade from Tel Aviv to Jaffa. Having toured the city with a guide the previous day, we had a chance to retrace our steps in greater detail. It was hot and sweaty, and though many shops were closed for Shabbat, we were definitely glad to get a chance to see the city for a second day.

"Chris, Kelley, Brad, and Don - looking like the A-Team"
Photo by Stephen Kushner

As we departed on Sunday, I believe the shared consensus among the group was that our tour of Tel Aviv was a great success! Without a doubt, Tel Aviv is a cool city - equal parts Miami, Rio, and Israel. It is a place to see and be seen. We'll be back.

Israel's Buffett

2010-05-29T15:30:00.024-04:00

On Friday morning, after arriving in Tel Aviv, we went directly to a meeting with one of the most esteemed - yet understated and humble - entrepreneurs in Israel, Yossi Vardi. Our meeting took place at a local primary school in Tel Aviv, where we had a brief, but rewarding conversation with Yossi. The school, which is government run, had been at risk of closure five years ago. However, with the help of Yossi and other generous benefactors, the school has prospered enormously - improving its performance across the board.

"Children playing at the local school sponsored by Yossi Vardi"
Photo by Stephen Kushner

The school draws its students from both locals, as well as the children of foreign workers. Its student body is a veritable United Nations, with pupils from Africa, Asia, and South America. Unfortunately, many students are the sons and daughters of undocumented immigrants, and are at serious risk for deportation. This issue remains an enormous challenge and as such, Yossi and others are leading the charge to quickly and fairly address this issue by bringing their cause to the governments attention.

"Anne makes some new friends"
Photo by Kristin Thompson

In many ways, Yossi is the consummate entrepreneur. Some might even call him Israel's Warren Buffett. Interestingly, I think Yossi is like Buffett - less because of investing - but more because both individuals come across as very down to earth and very connected to real life. To be sure, Yossi talked with us about key trends in the technology and internet markets. However, he made a serious (and well received) argument about social entrepreneurship as well. According to Yossi, incorporating social values significantly and measurably increases the overall value of a venture.

"The team shoots the breeze with Yossi Vardi"
Photo by Kristin Thompson

At a conference in 2007, Yossi quoted Teddy Roosevelt - drawing a clear analogy between Roosevelt's speech and current entrepreneurs - which I think is worth sharing.

It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

Yossi definitely has a presence - and though known for his lighthearted nature - can also be quite serious (as I think his words, deeds and actions reveal) when he needs to be. Over the course of our meeting we learned a little bit about Yossi's philosophy. Additionally, Yossi made a pretty compelling case for being involved in (and selecting) investment projects that fit the dual criteria of creating both social and economic value. All in all, it was a highly rewarding visit. For some additional commentary on our program from Yossi himself, there's a short video after the jump.

The Israeli Salaryman

2010-05-28T12:00:00.000-04:00

Many years ago my dad brought back a book, The Japanese Salaryman, from a business trip to Japan. Over the past ten days this book popped back into my mind. The book attempts to explain the unique characteristics of Japanese workers, as opposed to their counterparts in the US and Europe. To be sure, there is something special about how Japanese business and business professionals operate. As I've come to find out, Israel has its own special variety of workers too.

In many ways the common characteristics of Israeli workers couldn't be more diametrically opposed to those of the Japanese model. Israel is a nation driven by individualism. More importantly, the average Israeli is bereft of pretense - fully disinterested in surface trappings. Suits and ties are no where to be found. In Israel, business people move quickly, don't shy away from giving their opinions, and always seem to have an opinion to share.

As an American, it has been a bit of a challenge to adjust to Israel's unique business culture. Nevertheless, I'm starting to embrace the frankness. There's actually something comforting about an operating environment where people are willing to constantly challenge existing notions. It means that though oftentimes there is contention, the final results are better off as a result. As far as I know, no one has yet written (or is writing) a book on the Israeli salaryman. If they ever do though, I'll be the first in line to pick it up.

At The Technion

2010-05-27T06:00:00.010-04:00

Yesterday, on Wednesday we worked hard at our offices at the Technion. During this first full week in Israel, each team is busy meeting with our various technology inventors/partners, as well as meeting with our Israeli teammates. Preliminary work plans are due at the end of this week and our first class deliverable (an analysis of five potential markets) is coming up on the following Thursday.

"The team working hard at our Technion office space"

Photo by Kristin Thompson

With all of this work, we also had an opportunity at lunch to meet and socialize with the Technion Entrepreneurship Club (e-club). Every other Wednesday, the e-club arranges for afternoon speakers to talk on key topics of interest. This week, two Technion students presented on their technology start-up concepts - the first a novel personal online networking tool and the second an innovative game concept for mobile devices.

Heading North

2010-05-24T19:20:00.006-04:00

This weekend found the team on the road to Northern Israel. Waking up bright and early on Sunday morning, we had a quick breakfast and then departed for a day long guided excursion to see the sights and attractions of Haifa, Acre, and Rosh HaNikra.

After a quick drive up the coast from our base in Ramat Eshkol, first up was a quick tour through Haifa's German Colony and then up the side of Mount Carmel to the most impressive (and beautiful) view in Haifa - the Bahá'í World Centre and the Shrine of the Báb. As you can see from the picture below, the Bahá'í Gardens are gorgeous.

"View of Haifa from the top terrace of the Bahá'í Gardens"
Photo by Daniel Branscome

Leaving Haifa, we headed further up the coast to the ancient city of Acre. One of the oldest sites of human habitation, Acre has been a site of many conflicts over the past millenia - and has changed hands repeatedly. As such, Acre is home to many interesting sites, chief among them, a buried Crusader Fortress, an Ottoman Citadel, and the Khan al-Umdan.

"inside the main hall of the Knights Hospitaller at Acre"
Photo by Kristin Thompson

No doubt about it, these places were big hits with the group and had the Dan Brown fans among us thinking back to what we'd read regarding the Knights Templar and Knights Hospitaller. Very cool stuff.

By this time, the group was getting hungry - and boy oh boy - the tour guide did not disappoint. This brings us to what I'd say is currently the odds on favorite for highlight of the trip to date - lunch in Acre. After trudging through back allies, we found ourselves in front of a packed little hummus joint in the middle of Acre's Arab souq.

"Our tasty hummus lunch in Acre's Arab souq"
Photo by Kristin Thompson

If its not already obvious, the team really liked lunch - even as it only really consisted of warm pita, veggies, and hummus. The restaurant - whose name I never quite figured out how to pronounce - was instantly dubbed by the group as the "Ben's Chili Bowl" (Hummus Bowl?) of Acre. It was just that good.

Leaving Acre, we departed for the final site of the day, Rosh HaNikra. Directly on the border with Lebanon, these white chalk cliffs and coastal grottoes are known as the gateway to Israel. Taking a cable car down to the sea edge, we were able to explore the inside of the caves - and get up close and personal (my wet t-shirt is a testament to how close I was) with the waves that have been crashing and forming this site for ages.

"The team enjoying the seaside sights of Rosh HaNikra"
Photo by Kristin Thompson

This was a great way to end the day - and got us all excited about the adventures to come! Next up, this week we'll be working at the Technion in Haifa. Then on Friday we depart for a weekend in Tel Aviv.

Straight To Work

2010-05-21T18:53:00.006-04:00

After a free day to rest and recover, on Thursday we had our first class at the Technion. Around 4PM, we left our place in the Ramat Eshkol neighborhood to head to the campus.

Upon arrival we had a reception and had our first chance to meet our Israeli classmates (and teammates) for the summer. It seemed clear from the get-go (at least to me, and I believe to the other Smith students as well) that our Israeli teammates are just as excited as we are to get started. Our Israeli counterparts are all current students at the Technion, though many are also still employed during the week, mostly in the high-tech, aviation, and defense industries. To be sure, their diverse technical expertise will come in handy!

Class began promptly at 5PM with our professor, Uzi de Haan, spending a few minutes introducing the material, outlining the course, and setting expectations. Uzi - a professor at the Technion since 2003 and formerly CEO of Philips Electronics Israel seems like a real "no nonsense" kind of operator. He offered the class a pretty stark assessment of the challenge in front of us. Also, he didn't sugarcoat the assignment by shying away from the reality that some of the patents we'd be looking at wouldn't necessarily be "ready for prime time".

At 7PM we moved to a different classroom to hear presentations from each of the various patent inventors, scientists, and researchers regarding their technologies. Over the course of the next 2+ hours, we were given a terrific introduction to each of the patents. Some were already in a prototype stage, while others were still merely conceptual. Some had clear problems they looked to address, whereas others were still solutions looking for the right question. Regardless, what was clear was that each was very different and thus, would require teams to undertake multiple approaches.

With our teams formed and our patents assigned, the next two weeks will see us driving towards our first deliverable. Using both outside research, combined with team brainstorming, we must determine five potential markets or end users for our technology. We will then create presentations and come prepared to defend our selections.

The Smith Team

2010-05-19T10:14:00.007-04:00

Team Members, From Left to Right

Back: Kelley Harris, Kristin Thompson, Asher Epstein (Program Director), Sean Luke, Daniel Branscome, Anne Bisso, Brad Husser, Chris Rajashekar

Front: Donald Mayer, Stephen Kushner, Gil Sharon