Israeli venture capital firm Disruptive AI is moving funds from its bank account out of Israel, citing the nationwide protests over Prime Minister Benjamin Netanyahu's overhaul of the country's judicial system.
The firm affirmed that it is not moving operations out of Israel, just the bank accounts.
- The VC firm was joined by unicorn startup Papaya Global, which also moved its funds overseas.
- Papaya CEO Eynat Guez believes that the changes proposed by Netanyahu's administration are set to "harm democracy."
- Disruptive AI's foreign investors showed concern over their ability to invest in Israel if the reforms pass.
- Netanyahu's proposed reforms include stringent oversight of judicial appointments and reducing the influence of the Supreme Court over government decisions.
- Finance Minister Bezalel Smotrich addressed economic instability concerns by saying that their economy is "strong and profitable and investors are smart."
- Israel's economy is expected to slow below 3% this year, half last year's growth rate of 6%.