Legal Business

Israel: ‘Early exit’ controversy

Yigal Arnon’s Barry Levenfeld discusses tech sector exits.

Do Israeli companies exit too early? Some, primarily government officials, but also esteemed academics, think so. Israeli technology companies should resist being sold, they say. Instead, the companies should develop into global giants, employ thousands of Israelis – including those without advanced computer science degrees – and thereby enhance their contribution to the Israeli economy. The most recent salvo came from Manuel Trajtenberg, a Knesset member and respected economist, who warned at a conference: ‘The exits we applaud today are a disaster for the state of Israel.’ And then, twisting the knife further, he added: ‘A handful of people grow rich by selling the future of the nation.’