TLV Strategist - Issue #2
We’ve become the Silicon Valley’s farm system. How a tax loophole backfired. English events in the capital just got better.
Here’s what you should be reading:
Light Weights
If you thought the Tel-Aviv Stock Exchange couldn’t get any less relevant, you were wrong. The bourse’s recent changes in the mix and weighting of local stocks in its key metrics make it so the local indexes no longer represent the true nature of the market. In fact, one could interpret the move as forcing all of Israel’s capital markets to trade in smaller and less liquid stocks as to give the appearance of increased liquidity of those smaller stocks. Reading time: 3.5 minutes here.
Arab-preneurs
With only an estimated 100-150 Arab startup entrepreneurs active in Israel (out of a population of 1.7 million), there’s obviously room for improvement. A new startup accelerator in Haifa opens to assist Arab startups. Reading time: ~2 minutes here.
K Street, Jerusalem Style
The number of registered lobbyists in Israel has nearly doubled in the last 18 months to 177, according to the recent annual report on the state of Knesset lobbyists. Along with Anglo-Dutch foodmaker Unilever (in the aftermath of a food contamination crisis at its Telma unit), other interests represented include the Israeli bitcoin industry and makers of psoriasis treatments. TLV1’s The Promised Podcast offers insights. Listening time: 11 minutes here.
The Price Is Right
Israel’s annual consumer price index rose in January for the first time since 2014, led by energy and food prices. Inflation remains well below the Central Bank’s target range of 1 percent to 3 percent. Reading time: <3 minutes here.
Staying Power
Israel’s entrepreneurs are learning sahv'lanoot (patience). Quick M&A deals are becoming less popular for startups. Late stage financing accounted for 60 percent of total funds invested in 2016 and the average time to exit for startups increased to more than 7 years. Reading time: ~5 minutes here.
High Tech
Some 25 years after medical cannabis use was first approved in Israel, a government committee this month made a key move to allow the export of products. The nascent industry has global ambitions in medical marijuana forecast to be worth approximately $20 billion within a decade. Reading time: <6 minutes here.
Skewed
One big deal in the other M&A scene (in contrast to startups, see above) was enough to cause a blip in tax collection. Part of the 16% increase in revenues from direct taxes last year are directly related to the one-time collection of NIS 1.2 billion the sale of 80% of Keter Plastics in July. Reading time: <3 minutes here.
Emotional Rescue
The field of emotional analytics has arrived. Emolytics’s major customers might be advertisers, but applications have been made to focus on employees, healthcare and disease progression, as well as linguistic analysis. Reading time: <4 minutes here.
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