It’s hard to believe that a minuscule nation, in terms of both size and population, in the Middle East manages to produce more technology startups and draw more venture capital per capita than any other nation in the world, but that’s exactly what Israel does. But how? How the hell does a country with around 8 million people and virtually no natural resources achieve something like that. The answer si actually quite simple: the Israeli Defense Forces.
How does Israel, a small country with roughly 8 million people, produce more tech startups and receive more venture capital per capita than any nation in the world? Why does a country with few natural resources have more companies listed on the NASDAQ than Europe, Japan, Korea, India and China combined? To understand Israel’s innovation success, look no further than the Israeli Defense Forces and the country’s mandatory policy of service for young adults. For me and thousands of Israeli entrepreneurs like me, our startup journey began in the technology units of the Israeli Defense Forces. One unit in particular has become a prolific technology incubator, particularly in the field of cybersecurity: IDF Unit 8200. The 8200 is a special unit, and in many ways, it’s run like a high-tech startup. It begins with finding the best talent. IDF scouts comb the nation’s high schools to identify high-potential candidates at an early age. They target students with superior analytical capabilities, who can make quick decisions and work well in a team environment. Only the best and brightest are routed to this elite cybersecurity group.
