Israel has proven itself a hotbed for technology. From being a force to be reckoned with in the cybersecurity sector, and a leader in the with nanotechnology it should’t be surprising that the country is also an innovator in the medical devices field.
In late 2015 Steven Schoenfeld, founder and chief investment officer of BlueStar Global Investors LLC, a New York-based firm that specializes in the Israeli capital markets told the Globe and Mail that “Israel, for 30, maybe 40, years has been a leader in basic medical research. They have some of the best practical operating hospitals and research hospitals in the world. They have pioneered all sorts of techniques. The speed of innovation from laboratory to practice is strong.”
In a 2015 study from Israel’s ministry of industry, trade and labour, the country had 725 medical device companies in operation that were leading the country’s growth in the medical devices field. Driving the country’s position in the medical devices field is “a lot of willingness to experiment which doesn’t tend to exist in other societies,” Guy David, a professor of healthcare management at the University of Pennsylvania’s Wharton School said.
Medical device companies in Israel benefit from several options including government support. As MDDI Online highlights, the country’s Office of the Scientist, now the Innovation Authority, provides financial support for research and development programs in all technology fields. The government provides support through incubator programs, which is geared at attracting global expertise to support local start ups.
Likewise, in being a hub for technological innovations, medical technology companies operating in Israel also benefit greatly from medtech giants looking at the country’s enterprise sector for “innovative engineering and medical talent” MDDI Online reports. That said, many established medical technology companies like Johnson & Johnson (NYSE:JNJ), Becton Dickinson (NYSE:BDX)
and GE Healthcare (NYSE:GE) are active in Israel’s medical space, with several even setting up local research and development centers within the country.
Finding funding in Israel for medical devices
For early-stage medical device companies, finding funding in Israel can sometimes be a challenge, as with any market. That said, companies looking for funding do have several options available to them.
Angel investing is quite prevalent in Israel. MDDI Online writes that angels are likely to be successful serial entrepreneurs who bring added value to companies. Likewise, companies always have the venture capital and public market routes to take. And of course, acquisition.