Back In The USA

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.

First Three Weeks

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

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

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.

Celebrating The Future

Last night, myself and my fellow program participants joined donors, faculty, program supporters, and other guests, for a reception at the home of Miles Gilburne and Nina Zolt. The event offered us a chance to honor and thank our gracious benefactors. It also gave us time to share, not only an overview of this amazing program, but also relate what we each of us hopes to take away from this tremendous opportunity.

After about an hour of mingling and small talk, we moved directly into the heart of the event. First, we had a brief introduction from our host, Miles Gilburne. This was followed in short order with some remarks by the Smith School's current Dean, G. “Anand” Anandalingam. Next, Asher Epstein - head of the Dingman Center for Entrepreneurship and leader of this expedition - provided a window into his vision and strategy for the program.

After all of that, it was time for us - the students - to shine! Everyone spent a moment formally introducing themselves. Then myself, Chris Rajashekar, and Steve Kushner each made some broad comments on all the various aspects of the summer program.

The long and the short of it, is that the reception went off without a hitch! We met some fascinating people and made some fantastic connections. Altogether, it's clear that the enthusiasm we have is matched in intensity (and in a few cases, perhaps even exceeded!) by the many donors and supporters in the DC-Baltimore area.

After all the fun it's back to classes for another week, then finals, and then on to Israel! We're not there yet, but each day the anticipation builds. Only a very short time to go now ... t-minus 17 days and counting!