Clear and Present DangerAaron Mankovski: "The whole world never cared who was in government, only that there is a stable political system here that does not affect high-tech"
Clear and Present Danger
Aaron Mankovski: "The whole world never cared who was in government, only that there is a stable political system here that does not affect high-tech"
"All these years the Israeli government did not interfere with the high-tech industry and even helped it, because the government understood its importance. The whole world never cared who was in government, only that there is a stable political system here that does not affect high-tech, because it is an industry that needs conditions of certainty. Now the feeling is that although a reform must be made, it has been done without consulting anyone.
And then what, in the future they can make any change that comes to mind, in taxation for example or in other matters. So there is a fear that political stability is being harmed, that the courts will not be able to protect us - and this threatens the multinational companies that exist here. Clear rules of the game are an important anchor, and if they can change overnight, it could undermine our entire ability to do business. When missiles fell on Israel, our foreign partners were very worried, but we reassured them; It's a hard blow that the balance of the entire system is being broken. It will affect foreign investments, as well as multinational companies that are critical."
Beyond the general concern, in what other ways could the new government's measures harm you?
"There is a shortage of manpower in our industry, and one of the hopes to overcome it was to integrate ultra-Orthodox Jews in the industry. It started with ultra-Orthodox women, and there are also many initiatives to integrate men."
Aaron Mankovski is the Managing Partner at Pitango Venture Capital