Tag: ISBA

In the past week, we have been lucky enough to visit a number of very well known companies.  Two of my favorite visits have been to AT&T and to Microsoft. While I expected to have very formal lectures at both places, I was pleasantly surprised by the laid back nature of the discussions. We were graciously welcomed into both establishments.  The presenters were wearing jeans and seemed very excited to talk to us. I did not find out until later that one of the speakers at Microsoft was actually a very senior executive who is responsible for running a large part of the Israeli firm. This is more evidence of the casual, and humble nature of many people in Israel.

Guest Blogger: Jessie is a junior at Washington University in St. Louis

Aside from the welcoming atmosphere, I was impressed by the topic of discussion. At both places, we talked about the role these companies are playing in fueling Israel’s startup culture. Both AT&T and Microsoft have programs that encourage young entrepreneurs who have valuable ideas.

More specifically, the AT&T center has its International Innovation Center in Ra’anana, and Microsoft funds a start up program called Microsoft Ventures. The innovation center is a place where a number of innovators collaborate, share ideas, and think of ways to better the experience for an AT&T customer. It is interesting to note, however, that AT&T has no ownership over these companies and they can scale, grow and shift market in whichever way they please.

I found the Microsoft Ventures program particularly interesting because it is a program that pairs a startup with a mentor company in order to help the business grow. This semester, I did a presentation on Arch Grants, and had the pleasure of learning about their entrepreneurial competition. Just as Microsoft Ventures aims to foster the entrepreneurial spirit of Israel, Arch Grants aims to do the same for St. Louis. Just as Arch Grants funds a number of companies located in T-Rex, a center for entrepreneurs to collaborate, both Israeli accelerators give different entrepreneurs a physical space to exchange ideas.

I saw many other parallels in the programs, but he most astounding one was that neither Microsoft nor Arch Grants took any equity in the companies they helped. Although Arch Grants does not currently pair a start up with a mentor company, my team suggested they should. As proven by Microsoft, having a mentor company can give the startup a number of extremely useful resources. They are also both competitions, funding only the winners of extensive rounds of selection. Picking the finest companies and assisting them does great service to both the startup culture and the innovative spirit of both regions.

Today after having class in the morning and discussing the Waze case, we were fortunate to hear from one of the co-founders of Waze, Uri Levine. Seeing him clad in athletic clothing and sneakers, everyone was at first unsure if this was actually one of the co-founders of a more than billion dollar company.

Guest Blogger: Jackson is a sophomore at Washington University in St. Louis

Rest assured, he was. We later learned that Uri biked to IDC to speak to us. In fact, I think this informality, along with his laid-back, almost nonchalant temperament is what most impressed me and what I liked the most about him. This is because, although he definitely does impress, he doesn’t feel the need to do so, often mentioning that everything that he was saying was only his opinion and not to be taken for the final word. That said, I learned much from Uri that I hope to apply to my future work.

With Waze app, you can see other friends also driving to your destination, when you connect to Facebook. Coordinate everyone’s arrival times when you pick up or meet up with friends.

The first lesson relates to the initial steps to a start-up. Specifically, you need to a have a dream or passion about your start-up. Being an entrepreneur is extremely difficult, full of ups and downs, and is never a sure thing. So, it’s very important that you are pursuing your start-up for the right reasons, rather than to chase money. As Uri put it, you need to “fall in love” with your idea.

In addition, you need to find a solution for many users with a problem, and your solution needs to be “big.” In order to determine if your idea is big enough, you should ask yourself: Who will be out of business when I succeed? If you don’t know, the idea is simply not big enough. This notion was very meaningful to me, as my first thought would be that you would want to start small and be realistic. However, he said that when you think big, you have much more drive to accomplish your goals, even if you don’t get there right away.

Next, I learned a great deal about leadership. First, not everyone is best suited to be a leader in a company. Although Uri co-founded Waze, he said that he knew himself well enough to know that he wouldn’t be the right CEO. However, because he told us to reach high, I took some valuable advice away. That is, if you are ever CEO of a company, ego management is critical. As a leader of a company, it’s important not to let your ego get in the way of what is best for your company and its shareholders. In addition, it’s vital to be the type of leader that you would like to follow. This can’t be overlooked, as leaders of companies play huge roles not only in decision-making, but also the overall morale of the workers.

I could go on and on about what I learned from Uri, but these were a couple of the bigger takeaways. Near the end of his visit, I asked him why he decided to sell and leave Waze instead of either continuing to grow it with his team or joining Google once it sold. He responded by saying that he left in order to build a new startup because “this is what entrepreneurs do.” To me, Uri is a role model for any aspiring entrepreneur, and his advice will most certainly be something that I’ll never forget.

*Waze is the world’s largest community-based traffic and navigation app. Join other drivers in your area who share real-time traffic and info, saving everyone time and gas money on their daily commute.

On June 9, we went on our first company visit to Pitango, Israel’s leading venture capital fund. As we pulled up to the Corporate Park filled with beautiful office buildings and great restaurants, I thought I was in New York City. I immediately became even more excited than I was before and curious about what I was going to experience inside one of the buildings.

Guest blogger: Rachel is a sophomore at the University of Michigan.

Mlavsky

First, Dr. Ed Mlavsky, Chairman Emeritus and Founding Partner of Gemini Israel Ventures, spoke to us about the transition of Israel to a high-tech world. The organization of his presentation was timely and precise. Dr. Mlavsky described the days before the Internet to the present, in terms of investing in high-tech companies. He specifically noted that between 1999 and 2008 the Israeli Venture Capitalist Evolutionary process was in a time of “Survival of the Fittest.” This phenomenon occurs when too many funds are established, thus competition is inevitable between them. I found it interesting that the same term I learned about in high school science is applicable to business in the past and present. By 2012, the Israel Venture Capitalist Industry was in maturity.

Another important topic that Dr. Mlavsky thoroughly discussed was the American- Israeli culture gap and how it affects the industry. It is important to consider this dilemma when the firms debate hiring an American or Israeli CEO. After being in Israel for only a few days, the mentality of Israeli business is palpable. Dr. Mlavsky’s discussion was a great introduction to this summer’s adventures and educational experience.

Similarly, Rami, from Pitango, charismatically discussed his take on the industry, his personal experience and methods. Rami put the rather large terms we discussed in class into applicable advice that sparked my inspiration. One survival skill that specially stood out was the need to find your weapon. In other words, one needs to find what drives them in order to be successful. Over the next six weeks I am excited to explore this question further and hopefully will leave here knowing what my weapon is.

The Tel Aviv stock exchange was not what I expected. I imagined a large room, people yelling everywhere, the epicenter of Jewish chutzpah. Instead it was empty and quiet. No one seemed to work there. This was bizarre.

Guest Blogger: Ryan will be a senior at the University of Southern California and is studying Economics.

I later found out all the orders are now automated. Humans had been taken out of the loop in this regard by their own technology. On one hand, it’s great for both buyers and sellers.  They no longer need to pay as much of a fee to brokers given the new technology.  However, the eerie silence that filled a once lively room frightened me.

Computers, algorithms, the latest program, gadget, etc. are all making our lives better in one aspect, only the thought of people no longer being needed really made me think.

Accountants are finding themselves out of jobs due to programs like Turbo Tax.  Translators/ interpreters should enjoy their jobs while they can because Google Translate and others are soon going to make them expendable. Computers can recognize faces, drive cars, and now, we are trusting them to handle billions of dollars in investments.

Knowing the trend of hi tech, the train never stops. Innovation doesn’t go backwards, only forward. So I’m not sure if I am now looking forward to watching technology continue to advance or scared to death. The costs now seem existential yet the benefits are just too tempting. I just know that after the Tel Aviv Stock Exchange I felt like I was in a science fiction movie that captured my imagination, only the morale of the movie was be careful what you wish for.

Getting to Tel Aviv and Israel for the first time is a culture shock. You step off the plane and, instantly, you’re placed into an environment that is entirely foreign to almost everyone outside of Israel. This is the only country with Hebrew as the national language and Judaism as the national religion.

Guest blogger: Leah, a BSBA sophomore at Washington University in St. Louis

So, lets begin with the new language. Not only a new language that you very well might not understand, but also a new alphabet, which creates entirely new obstacles. We may not think too much about it, but the alphabet is very, very important. When in France, or Spain, or other European countries, there are plenty of cognates so that we can somewhat comprehend the signs we see on the streets or a menu of some sorts. Here that all changes.

Being Christian in a Jewish state isn’t so much of an obstacle here, but a reality check. Back in the States, we are surrounded by a Christian society that hangs lights during the Christmas months, some shops close down on Sundays for religious reasons, and many other nuances that seem to be just a part of life for us. But in Tel Aviv, there is a stark difference in the way that things are done. For religious reasons, there is no working allowed on Friday from sundown to Saturday around the same time.

From seeing all of these differences in societal occurrences, I’ve come to ask questions to further understand why some things are done the way they are here, and I’ve found myself becoming more curious about other ways of life than my own. This program isn’t only helping us learn about business in Israel, but also to learn about the culture and to appreciate it.

Bryan, Jared, Leah, Adam, and Marni at a start-up in Tel Aviv.

While there are so many cultural differences here, there are ways to adapt and adjust. For the most part, you can always find someone in the vicinity who speaks at least a little bit of English to help you out, and they are more than happy to do so. Israelis want everyone to understand their culture too, so there are never judgments passed. One specific asset that we have in this program is a peer mentor from the IDC campus. Having a personal connection with someone close to our age who can help us get around and see Tel Aviv the way that they see it as a local is an amazing experience that not many visitors enjoy.

The 2015 Israel Summer Business Academy begins June 4! In Tel Aviv, Israel, 35 undergraduate students are are coming together from six universities around the world for the next six weeks.

They’ll be studying venture creation, business, innovation, and entrepreneurship at IDC in Herzliya. In addition to time in the classroom, they’ll also embark on cultural and academic excursions to visit Jerusalem, Negev Desert, Golan Heights, and the Sea of Galilee.

For more information on ISBA and what to look forward to from this summer’s academy, visit the website and read last year’s blogs here. And be sure to follow the blog for updates on their adventures and follow them on Twitter: @ISBA_Olin and #OlinISBA.