Why Israel is leading fintech innovationOct. 6, 2015
Avi Zeevi of Carmel Ventures writes in VentureBeat:
Over the past couple of decades, Israel has developed a strong fintech ecosystem thanks to continued overseas interest, a local commitment to innovation, and a community that’s dedicated to addressing the emerging needs of this industry.
The Israeli fintech industry continues to grow so impressively that it is attracting more and more entrepreneurs and increased funding from global investors. Take, for example, companies like FundBox, which raised $90 million in two rounds, Payoneer, which attracted a similar amount, and eToro, which raised $40 million, all in the past year.
In addition to the long list of successful fintech companies that have gone public or been acquired by leading players, many more Israeli startups are addressing emerging fintech sectors including payments; trading and investing; lending and financing; cryptocurrency; customer engagement; personal financial planning; anti-fraud; banking and insurance; and more. For us at Carmel, fintech has been an important focus since the fund’s inception, and we have recently created this map outlining Israel’s fintech landscape.
Why is Israel at the forefront of finteech Innovation?
1. It has mastered the relevant technologies. Israel has a great deal of fundamental experience and knowledge in technologies that are becoming increasingly relevant to the modern world of fintech, which is more personalized, consumer-friendly, and mobile, and aims to reach populations that aren’t able to get adequate financial services. Such technologies include expertise in real-time analytics, algorithmics, big data, risk management, anti-fraud, and security.
2. It has a legacy of successes. Israeli fintech companies that have become leaders in their respective fields, such as Actimize in the area of fraud prevention, FundTech in the area of transaction banking solutions, Retalix in the area of point-of-sale, Trusteer in the area of cybercrime prevention, and Sapiens in the area of insurance. As a result, the local startup ecosystem has massive amounts of knowledge regarding the global fintech industry, its requirements, and its business practices. Those successful fintech companies grow and nurture entrepreneurs and executives, giving them a great deal of go-to-market expertise. The ecosystem also benefits from a growing group of “second-time” entrepreneurs who have already built a successful company in the past and are now onto their second fintech venture.
For the full article by on VentureBeat click here.