The highly entertaining chairman and CEO of Vignette, Inc. Mr. Ross Garber sympathized with the plight of the Israeli who has to adjust to the American culture of doing business. Mr. Garber is an entrepreneur who made it big. The Vignette story is truly one from rags to riches!
Israeli entrepreneurs who enter the market are well aware that one has to be 'first and fastest'. This sentiment was echoed by Rami Kalish, general partner of the Israeli venture capital firm Polaris. Mr. Kalish knows the game well and his firm has notched up many investment 'hits'. However, even his four principles of having 'technology, management, business model and good execution' could hardly impress the listeners.
It may appear that I am being somewhat harsh on the visiting speakers. However, it is likely that what I criticized is far from being their own fault. Undoubtedly, the organizers prompted them and suggested what the content of their presentations should be.
On the other hand, among the more than 100 company presentations, over the two day Conference it was clear that there are many gems and near gems. In fact, it was exciting to come listen to presentation by managers of Comverse Technology and CheckPoint Software. These companies represented a combined market capitalization of about $12 billion.
D-Pharm and XTL Biopharmaceuticals. Internet and Internet related companies such as Top Tier Israel were in abundance and impressed with their sheer technical brilliance and audacity in rushing innovations to a "hot" market place.
For the young Israeli entrepreneur listening to the presenters at the recently held 3rd Annual Hambrecht & Quist/Tamir Fishman Growth Conference it might have been a repetition of yesteryear when listening intently to the wisdom of an overbearing but well wishing father. During the harrowing discussions the son's every weakness was exposed. At some point the remonstrative father did point out that indeed the son has some good qualities but....but...... Every Israeli entrepreneur, worth his salt, especially those "on their second company" know certain facts of the arduous high-tech existence. Among these: no matter how nimble, aggressive, open minded and technologically clever he doesn't even think of how to market his novel system, hardware or software, from the Land of Silicon Wadi. However, Mr. Izhar Harmony undoubtedly a former Israeli, repeatedly hammered a message to the participants at the Conference. Startups are insufficiently market driven. There is not enough experience in having successful companies. There is too much 'meat and potatoes' and not enough 'sizzle'. Israeli entrepreneurs should switch from the 'jungle mode to the 'highway mode', preached Mr. Harmony, He was not the only preacher of How to Succeed. Mr. Clifford Higgerson of Communications Venture, well known in the field of telecommunications investments, must have also been prompted that he should preach to the unconverted audience. The downside, as he put it was that Israel's technical leadership did not have the necessary management skills. Were Messrs. Harmony and Higgerson marketing and management specialists their words would have carried the weight which experienced experts can and should bring to conferences. One only had to be reminded that these individuals were venture capitalists. However, there is no venture capitalist alive that will not proclaim that it is not just money that is supplied but the investee is accompanied, nurtured, introduced and led to ultimate Initial Public Offering and a springboard to wealth and prominence. Well, the Effi Arazis, Uzia Galils, David Rubiners and more recently the Gil Shweds all managed. As Woody Allen once said: Fellows you must be kidding!