Innovation runs deep in Israel’s DNA, shaping the country into a global leader in technology and entrepreneurship. Few understand this better than Yuval Passov, the head of Google for Startups in Israel, the Middle East, and Africa. In an engaging conversation with Yoel Israel of IsraelTech, Yuval Passov shared insights into the startup ecosystem, the role of Google for Startups, and how the events of October 7th have shaped the future of Israeli entrepreneurship.
The Role of Google for Startups in Emerging Markets
Google for Startups plays a crucial role in bridging innovation and opportunity across emerging markets, which include Israel, the Middle East, and Africa. Unlike traditional startup accelerators, Google for Startups is a dynamic ecosystem where founders can join at any stage, gain mentorship from top industry experts, and leverage Google’s vast technological resources.
“One of the most exciting aspects of working in emerging markets,” Passov explained, “is the sheer diversity of challenges and opportunities. Whether it’s AI-driven healthcare, GovTech, or fintech solutions, the goal is to solve big problems with innovative technologies.”
Africa, in particular, presents a unique opportunity. Passov pointed out that because many African nations lack outdated infrastructure, they can leapfrog directly to cutting-edge solutions, whether it’s mobile banking or AI-driven urban planning. This trend, seen in other emerging markets, positions startups in Israel and beyond to drive significant global impact.
Israel: No Longer an Emerging Market?
Despite being grouped with emerging markets, Israel’s status is a subject of debate. Yoel Israel asked, “How much longer do you think Israel will be considered an emerging market? We’re leading the world in tech, but at the same time, we feel like we’re stuck in between.”
Passov clarified, “I don’t think Israel is an emerging market anymore. The pace of innovation here, the number of successful unicorns, and the deep technological advancements we see daily place Israel on par with leading global tech hubs.”
Google for Startups in Tel Aviv is the most active of Google’s six global startup campuses, including locations in Europe, Asia, and Latin America. The campus supports over 30 founders at a time, providing them with mentorship, networking opportunities, and access to Google’s vast ecosystem, from AI experts to cloud infrastructure.
Building a Startup Community that Thrives
One of the most distinctive aspects of Google for Startups is its emphasis on community. Entrepreneurship can be a lonely journey, and having a network of fellow founders can be a game-changer.
Passov described a unique initiative: the CEO Circle. “Every month, a different founder brings a specific challenge they’re facing. A group of fellow CEOs then work through the problem together, offering insights and guidance. It’s a structured, highly effective way to tap into collective experience.”
Beyond structured mentorship, founders frequently exchange knowledge on practical topics – choosing the right lawyer, structuring international expansion, or handling technical issues. This collaborative approach provides entrepreneurs with an invaluable support system.
The Impact of October 7th on Israeli Startups
The events of October 7th shook Israel’s tech ecosystem, but they also reinforced the resilience of its startup community. “Many founders were called into reserve duty, while others found new ways to contribute through innovation,” Passov shared.
Google for Startups responded quickly, ensuring that their Tel Aviv campus remained open as a safe space for entrepreneurs. Some founders had no bomb shelters at home, making the campus a critical refuge. More than just a workspace, it became a center of support, enabling startups to continue working despite the crisis.
Interestingly, Passov observed a surge in mission-driven startups emerging post-October 7th. “In times of uncertainty, the founders that persist are deeply committed to their vision. Investors recognize this, and many believe now is one of the best times to invest in Israeli startups.”
The Rise of Bootstrapping and Lean Startups
A growing trend in the tech ecosystem is the shift toward bootstrapping, where startups delay fundraising and rely on minimal capital to build their MVPs. Advances in AI and development tools have made this approach more viable than ever.
“We’re seeing founders get much further with fewer resources,” Passov noted. “With AI tools, what once took a 20-person team can now be done by one or two people. This means founders can approach investors with a more mature product, leading to better valuations and stronger negotiating positions.”
He also pointed to a rising trend of “one-founder unicorns,” where a single entrepreneur – leveraging AI and automation – can scale a business that previously required large teams.
Mental Health and the Startup Journey
Tech entrepreneurship is as mentally demanding as it is innovative. Passov emphasized the importance of mental health, a topic increasingly prioritized by Google and other major tech firms. He highlighted several Israeli startups working in this space, including:
- Kai AI, which creates AI-powered virtual agents to assist psychologists and therapists.
- Kimba, a startup developing scent-based therapy to improve sleep quality, particularly for those with PTSD. Their device, developed in collaboration with the Weizmann Institute, releases specific scents at different sleep stages to enhance rest and recovery.
“There’s a growing awareness that mental health is crucial – not just for individuals, but for the sustainability of the entire tech ecosystem,” Passov noted.
Why Israel Excels in B2B SaaS, Not Consumer Hardware
While Israel is a powerhouse in software and cybersecurity, it hasn’t made significant inroads into consumer hardware. Passov attributes this to scalability challenges. “It’s far easier to scale a software product globally than to manage manufacturing, distribution, and logistics for a physical product.”
However, Israel remains a leader in specialized hardware sectors, such as AI chips and medical devices, where innovation is driven by deep tech expertise rather than mass-market appeal.
The Future of Google for Startups in Israel
Looking ahead, Passov envisions Google for Startups expanding its impact. “Right now, we support 30 startups at a time, but I’d love to see that number double.”
A key focus will be on increasing diversity. Google for Startups is actively working with underrepresented groups, including ultra-Orthodox entrepreneurs through the KamaTech Accelerator and initiatives tackling domestic violence through technology.
“We want to ensure that entrepreneurship in Israel isn’t just for the well-connected few. There’s immense talent across all sectors of society, and our goal is to bring that talent into the startup ecosystem.”
Final Thoughts
Google for Startups isn’t just about supporting individual companies – it’s about strengthening the entire Israeli tech ecosystem. By providing mentorship, access to cutting-edge technology, and a thriving community, it continues to be a major force behind Israel’s status as the Startup Nation.
Yuval Passov left us with a powerful takeaway: “Innovation is part of our blood. Israeli startups aren’t just building companies – they’re solving real-world problems at scale.”
As Israel’s tech ecosystem evolves, one thing remains certain: the future is bright, and Google for Startups will continue playing a pivotal role in shaping it.
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