Israeli Prime Minister Benjamin Netanyahu's proposed judicial reforms have the ability to freeze the venture funding availability for startups, argues Crunchbase.
Bessemer Venture Partners wrote in an internal memo that "the current
climate may result in a chilling effect on non-tech foreign investment
and domestic consumption in Israel that goes beyond the challenging
macro environment."
- The
reforms, which aim to give the government the power to override Supreme
Court decisions, have triggered a widespread public backlash.
- Due to the reforms, several startups and VCs have started moving funds out of Israel.
- Israeli
HR and payroll unicorn startup Papaya Global and VC firm Disruptive AI
announced earlier this year that they were moving funds out of Israel.
- Estimates show that roughly $7B to $10B in funds were moved out of the country.
- Bessemer Venture Partners advised portfolio startups in Israel to hold only six months of capital in the country.
