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.

Dead Sea Visit

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!

Fun In The Sun, pt2

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.

Hebrew University, pt2

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

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!

More Venture Capitalists

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.

Better Place Ctd

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

Free Weekend

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!

Hi-Tech Israel

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 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.

Venture Capitalists, pt2

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

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.

Political Issues

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

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.