Waze Deal Primes Israel’s Silicon Wadi for Wave of InvestmentJun. 13, 2013
Google’s acquisition of mobile map developer Waze Inc. marks one of the most lucrative outcomes for an Israeli technology startup, and is poised to fuel a wave of investment and entrepreneurship in the country.
Waze was bought for about $1.1 billion, a person familiar with the transaction said earlier this week, making it one of a handful of companies with roots in Israel to fetch more than $1 billion. The company has offices in Ra’anana, Israel, where it was founded, and Palo Alto, California.
Israel has rallied around Waze, a service initially built and funded by locals and used by millions of its residents. The company’s success is helping to validate the rise of Silicon Wadi, the technology community that takes its name from an Arabic term for valley. The injection of Google’s money could trickle down to the next generation of startups in the country, said Izhar Shay, a general partner at Canaan Partners.
“People who worked at this company will go out to invest and create their own companies, and will help mentor other entrepreneurs,” Shay, who is based in Herzliya Pituach, Israel, said in an interview. “It will also help attract additional venture money into Israel.”
For the full Bloomberg story click here.