By Emily Rose
JERUSALEM (Reuters) – Nearly 70 percent of Israeli startups have moved to move some operations out of Israel, a survey released on Sunday by Israeli nonprofits on the government’s planned judicial reforms found.
The Startup Nation Center survey seeks to gauge Prime Minister Benjamin Netanyahu’s far-right coalition’s economic impact plan that would limit the Supreme Court’s power to overturn legislation.
Demonstrators have staged massive street protests for months against plans they say threaten Israeli democracy by removing checks on executive power.
Business groups also cited the proposed changes as a reason for a 70% drop in tech fundraising in the first half of the year.
Israel’s technology sector is a growth engine, accounting for % of economic output, % of jobs, over 15% of exports and 15% of tax revenue. But institutional investors haven’t played a big role in its success, with most of the investment coming from venture capital funds.
The survey, completed by professionals representing 68 companies, said 50% of Israeli startups “have initiated aggressive legal and financial measures such as withdrawing cash reserves, relocating headquarters outside of Israel, relocating employees, and undergoing layoffs.” transfer abroad.
Start-Up Nation Central CEO Avi Hasson said that “trends such as registering companies abroad or launching new startups outside Israel will be difficult to reverse.”
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