Israel has long been recognized as a breeding ground for innovation, particularly in the tech industry. The country’s unique environment has fostered the growth of countless startups, many of which have gone on to achieve global success. At the heart of this thriving ecosystem is mentorship, collaboration, and a focus on building sustainable companies that can scale internationally. Barak Schoster Goihman, a partner at Battery Ventures, met with IsraelTech‘s Yoel Israel to provide an insider’s perspective on how Israeli startups are navigating through this landscape and the role Battery Ventures plays in their success.
The Global Reach of Battery Ventures
Battery Ventures is a global fund with a strong presence in Israel, focusing on helping companies scale from $1 million to $1 billion in revenue. “Battery is a great fund,” says Schoster Goihman, summarizing its impact. With over 40 years of experience and six offices worldwide, Battery Ventures has a vast network that Israeli startups can tap into. This network is invaluable for Israeli entrepreneurs who are often global-first, targeting markets in the U.S. and Europe.
Schoster Goihman explains that being a global fund means more than just having offices in multiple countries. It involves leveraging a network of advisors, potential hires, and prospects across the globe to facilitate the right go-to-market strategies for startups. “We try to help with those networks to facilitate the right go-to-market motion for those companies,” he says.
The Unique Role of the Israeli Office
While Battery Ventures operates globally, its Tel Aviv office has a unique role. Schoster Goihman humorously notes, “We are the team that looks the best out of the six offices.” But beyond appearances, the Tel Aviv team is deeply embedded in the local startup culture, which is crucial for developing strong relationships with entrepreneurs. “It’s easier to develop a strong relationship with someone who’s about to be your partner after an investment,” he adds. This close-knit approach allows Battery Ventures to better support Israeli startups on their journey to global markets.
Mentorship and Knowledge Sharing
One of the standout features of Battery Ventures is its emphasis on mentorship. Schoster Goihman, who was an entrepreneur before joining Battery, highlights the importance of having access to a network of experienced operators. “We have people with a lot of experiences on building great companies on different go-to-market roles,” he says, referencing industry leaders like Max Schireson, former CEO of MongoDB, and René Bonvanie, former CMO of Palo Alto Networks.
This mentorship extends beyond Israel. Battery Ventures facilitates connections between its portfolio companies, allowing them to learn from each other’s successes and challenges. “We’re trying to help our portfolio companies,” says Schoster Goihman, emphasizing that while mentorship isn’t mandatory, it’s a natural part of the collaborative culture at Battery Ventures. This culture of shared knowledge helps elevate the entire network, fostering innovation and growth.
The Israeli Startup Ecosystem: Strengths and Opportunities
Israel’s tech ecosystem is known for its ability to innovate around hard problems and distribute solutions globally. Schoster Goihman cites Akamai, a company that essentially built the internet’s content delivery network (CDN), as an early example of Israeli innovation with global impact. But while Israel excels in areas like cybersecurity, developer tools, and business applications, Schoster Goihman believes there is still room for improvement.
“From a certain scale, you need to stop being a startup and have governance in place to build a good public company,” he explains. This transition from startup to a public company is a challenging one, and it’s an area where Battery Ventures’ institutional knowledge can be particularly valuable. By bringing in experienced operators, Battery Ventures helps Israeli startups navigate the critical phase of growth. They also foster good governance practices to guide this transition.
A Day in the Life at Battery Ventures
For Schoster Goihman, no two days are the same at Battery Ventures. His role involves everything from meeting with entrepreneurs to providing strategic guidance, reviewing financials, and helping startups hire key executives. “Every day is substantially different from the previous one,” he says. This variety keeps the job exciting and allows him to continuously learn from the innovative minds he encounters.
Schoster Goihman also spends a significant amount of time building relationships with large corporations, which can become clients for the startups in Battery’s portfolio. “In some cases, the company does not need my help and they are very good without me,” he admits. But when his assistance is needed, he’s there to facilitate introductions and support the company’s growth.
The Importance of Empathy in Investment
Reflecting on his journey from entrepreneur to investor, Schoster Goihman underscores the importance of empathy. “The main thing that I would have told myself is more empathy,” he says, stressing the need to understand the challenges faced by entrepreneurs, employees, and partners. Having been through the startup grind himself, he brings a unique perspective to his role as an investor. “I think that the beautiful thing about funding a startup is that you don’t really understand how hard it’s going to be on the first day,” he adds.
This empathy extends to his interactions with other investors. Schoster Goihman believes that a good board should include both professional investors and operators who have firsthand experience building companies. “Everybody is on the same side and wants to build a great company and help it succeed,” he says. By combining financial expertise with practical, operational advice, Battery Ventures provides comprehensive support to its portfolio companies.
Looking Ahead: Battery Ventures’ Future in Israel
As Battery Ventures continues to deepen its roots in Israel, Schoster Goihman is optimistic about the future. The firm’s goal is to identify the best companies in Israel and support their global scaling. “Our goal is to find the best companies here and help them grow,” he says. With a focus on sectors like developer tools, enterprise infrastructure, fintech, and business applications, Battery Ventures is well-positioned to continue driving innovation in Israel’s tech ecosystem.
For Israeli entrepreneurs looking to make their mark on the global stage, the support of a firm like Battery Ventures can be invaluable. Through mentorship, strategic guidance, and a robust global network, Battery Ventures is helping to shape the future of Israeli startups—one successful company at a time.
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