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1The UK-Israel digital & tech opportunity 12/09/2012
The UK-Israel digital & tech opportunity 12/09/2012 2
The UK-Israel digital & tech opportunity
Nitin Dahad12 September 2012
Agenda
• Introduction to UKTI and its services
• Brief overview of Israeli digital/tech environment
• The UK and Israel
• How UKTI can help
• Summary
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INTRODUCTION TO UKTI
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The role of UK Trade & Investment
• Dedicated to helping UK exporters in global markets
• Provide expert trade advice and practical support to UK-based companies
• 2,400 staff in 96 countries, ensuring support every step of the journey
• Support for participation at selected trade fairs
• Sector based outward missions to key markets
• Bespoke market intelligence, market reports
• Last year UKTI helped 25,000 UK companies improve overseas performance
• £30bn additional sales generated through UKTI support in 2011/12
• 90% of companies supported are SMEs, and 2/3 have less than 50 staff
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UK Trade & Investment – also supporting inward investors
• UKTI also supports foreign companies looking to invest or locate in the UK
• The UK is the number one for headquarter operations in Europe
• In 2010/11, UKTI was involved in some 849 inward investment projects
• 3,200+ companies increased UK R&D activity as a result of UKTI support
• In 2009/10, R&D investment into the UK increased by 36% over 2008/09
• Some selected UK facts:
– UK is world’s second largest exporter of TV programmes
– UK has the top four universities in Europe
– London is the world capital wi-fi hotspot use
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A range of services to support export and overseas growth ambitions
• Passport to Export
– Planning advice and support for new and inexperienced exporters
• Gateway to Global Growth
– Strategic review, planning and support for experienced exporters
• Overseas Market Introduction Service
– Tailored market and industry information and identifying potential contacts; or assist in planning an event in market
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A range of services to support export and overseas growth ambitions
• Events and seminars
– Sector specific and market-based activities in the UK and all over the world
• Trade missions
– Helping UK companies to visit a market of interest and have face-to-face contact with prospective business partners and buyers
• High Value Opportunities programme
– Proactively identifying global supply chain opportunities around the world in major projects
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ISRAEL DIGITAL/TECHENVIRONMENT
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Israel – digitally connected
The UK-Israel digital & tech opportunity 12/09/2012 10Source: http:visual.ly, 2011
Israel in the Digital Age 2012 – Google funded study
• Google Israel and Mahshsov Institute study: “Israel in the Digital Age 2012”
• Over 50% Israeli Internet users use social networking at least once a week
• 73% of users age 15-17 use social networking every day
• 25% of teenagers age 15-24 writes a blog
• 12% of older users writes a new blog post each day
• Users age 15-24 spend 20% of Internet surfing time on their mobile phones
• 75% of Israeli web surfers watch videos on the internet
• One third of Israeli Hebrew speakers only visit Hebrew language sites
• Survey sample was 1,200 people of varying demographics
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Israel digital/new media sector
• Over 1000 new media companies in Israel, active in
– Internet applications and services,
– e-commerce and marketing
– Online advertising, entertainment and video
– Search and social networks
• These companies play in key areas including:
– Broadcast, digital & cable TV, IPTV and satellite services
– Content creation, delivery and management
– Gaming and new interface solutions in consumer electronics
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Technologies developed in Israel
• Intel Centrino and Pentium 4 microprocessors
• NDS conditional access and DRM systems
• USB flash drives (M-Systems)
• VoIP invented by founders of VocalTec
• AOL Instant Messenger developed by ICQ
• Wi-Fi and WiMAX solutions pioneered by Alvarion
• Voicemail invented by Comverse
Source: The Israel Export & International Cooperation Institute
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Multinational companies with R&D facilities in Israel
• Intel – one of the first tech investors in Israel in 1974, and now one of the largest private sector and tech employers in Israel with some 8,000 employees
• IBM – employs some 2,000 people in Israel
• SAP – employing about 800 people in Israel
• Siemens – employing about 800 people in Israel
• Microsoft – employing about 600 people in Israel
• Google – employing about 250 people in Israel
• Plus: PayPal, Cisco, Ericsson, HP, IBM and others
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Israeli high-tech funds and M&A 2011/2012
• Total Israeli high-tech exits in 2011 totalled $5.23 billion
• 85 Israeli high-tech companies were acquired or merged in 2011
• Average deal size of $60m in 2011
• Largest deal in 2011 was, however, ad technology company MediaMind, acquired by DG Inc for $517m
• In 2H2012, Israeli high-tech companies raised $453m from venture investors
• Key sectors continue to be Internet, software and communications
• Latest news: Pitango announced $150m raised as part of $250m fund to invest in Internet and media, mobile apps, data storage and enterprise computing, telecoms, software, semiconductors and renewable energy
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Israel, the ‘Start-up Nation’
• Map connecting and promoting tech community in Israel
• Currently lists:
– 754 startups
– 13 accelerators
– 13 R&D centres
– 8 Coworking spcs
– 19 Investors
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UK AND ISRAEL
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UK and Israel
• Bilateral trade is now almost £4 billion: £1.57 billion exports from the UK, and £2.18 billion exports from Israel (2011 figure)
• Majority of trade is in pharmaceuticals, machinery, diamonds and technology
• The UK is Israel’s third largest trading partner (Israel-Britain Chamber of Commerce)
• Israel is UK’s largest partner in Near East and North Africa, and its 32nd largest export market worldwide
• Israel is among top 20 countries investing in the UK
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UK-Israel Tech Hub
• Launched in October 2011, following agreement between Prime Ministers David Cameron and Benjamin Netanyahu
• Objective: to promote economic growth and innovation in the UK and Israel through cooperation between technology companies in both countries
• Positioning the UK as a natural partner of choice for Israel in technology
• Ensuring UK understands and makes use of Israeli R&D and innovation
• Focus of the hub on technology, business and finance collaboration in:
– Digital
– Life Sciences
– Cleantech
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Creating a UK/Israel partnership in technology
• UK Israel Tech Hub supported by UK-Israel Tech Council, co-chaired by UK Minister for Universities and Science David Willetts and Israel’s Chief Scientist Avi Hasson
• The Hub defines key sectors where UK/Israel collaboration could be complementary and fruitful
• Also aims to identify and bring innovative Israeli technology and R&D to UK-based companies
• Positioning the UK in Israel as a centre for technological and services innovation and as a partner of choice for Israeli technology companies
• Tying Israeli technology players into UK capital markets
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TeXchange – a UK/Israel tech and innovation exchange programme
• Launched in August 2012, as an exchange programme between British and Israeli entrepreneurs
• First of 3-4 programmes a year to take place on 26-29 November 2012
– Approximately 15 Israeli entrepreneurs will head to UK for a programme of events to meet potential customers, investors and partners
• November programme focus is internet companies with solutions in gaming, adtech, mobile, e-commerce, social media, video and more
• Future activity will include taking selected groups of British entrepreneurs to Israel with a similar programme to tap in to the power of the Israeli ‘Start-up Nation’The UK-Israel digital & tech opportunity 12/09/2012 21
UKTI in Israel
• Key sectors of activity for UKTI in Israel are
– Creative media, digital
– Life sciences
– Cleantech
– Electronics and electro-optics, and electronics in defence
• Most British companies that come to Israel are looking at life sciences
• Market opportunity in all other sectors of digital/technology is good
• Consider collaborating with local partner for market entry, though not essential
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How UKTI Israel can help
• For British companies, UKTI Israel offers a range of services to help evaluate the Israeli market, identify contacts, arrange targeted visits and engage with potential partners and customers
• For Israeli companies, UKTI helps with advice on setting up a business in the UK, information on locations, finance, recruitment and assistance with finding partners in the UK
• There are over 250 Israeli companies with their own operations in the UK
• In last 4 years, UKTI Israel has helped 60 Israeli companies to set up in the UK and create more than 1000 new jobs
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Summary
• Israel is a digitally connected market, with a good profile of digital users
• Presence of major global tech players + entrepreneurial culture ensures a sound tech ecosystem as potential partners and customers
• Israel has a track record of pioneering globally used technologies
• Israel has a well developed investor/VC ecosystem looking at digital media, Internet, software, mobile apps, communications and electronics
• UK-Israel trading history is strong and growing
• UK Israel Tech Hub designed especially for partnership and collaboration
• UKTI offers a range of services to support market evaluation, entry and growth in Israel
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