Israeli Companies in Global Markets

A Roadmap for Managers in an Era of Change

6/28/202515 min read


Israeli Companies in the Global Arena – Opportunities and Challenges

Global expansion has become a necessity for Israeli companies, not only as a vital growth channel but also as a lever for resilience and risk diversification. The digital nature of many industries, especially in SaaS (Software as a Service), allows Israeli companies to reach a broad global audience without significant physical expansion or high overhead costs. These circumstances, coupled with consistent technological investments, have positioned Israel as a leading startup hub. This report offers a roadmap for Israeli managers, addressing the unique challenges and leveraging Israeli advantages in the international arena.

Despite the complexity and numerous challenges, Israeli technology companies continue to demonstrate exceptional resilience and innovation. They adapt their business models to the changing reality, invest in new technologies, and explore emerging markets.1 This proactive entrepreneurial spirit is a critical asset for success in the international arena, enabling them to navigate a dynamic business environment and turn obstacles into opportunities.


Navigating the International Business Landscape: Key Challenges and Growth Opportunities

Unique Challenges for Israeli Companies Abroad


Expanding into international markets presents Israeli companies with a series of complex challenges, some of which are unique to Israel's situation.


Geopolitical Impacts, Global Image, and Technological Shifts (AI)


The complex global business landscape is significantly affected by internal political instability in Israel and the war in Gaza. Additionally, the global Artificial Intelligence (AI) revolution disrupts old orders and empowers new players, making it difficult for Israel to keep pace with development.2 There is a real risk of a "perfect storm" – a combination of internal instability, a decline in Israel's global image, technological shifts that weaken its advantages, and a potential global recession triggered by trade wars.2

The impact of geopolitical instability is not merely an external factor; it directly affects the daily operations of companies. The Israeli high-tech industry, once perceived as a "nature reserve" immune to politics, is now significantly affected. Companies have had to undertake significant efficiency measures, such as cost reductions and layoffs, to cope with disruptions like prolonged military reserve duty and increased caution from global investors.1 This situation indicates that geopolitical challenges are pushing Israeli companies not only to strive for growth abroad but also to diversify risks and ensure business stability through a strong and distributed global presence. This marks a strategic shift from an "aggressive growth" approach to one of "resilience and distributed growth."


Human Capital and Startup Funding Challenges


In the realm of human capital, a trend that existed for over a decade – a persistent shortage of personnel (estimated at 20,000 unfilled positions) – reversed since early 2023. Today, the share of high-tech job seekers has doubled relative to their presence in the overall workforce. This trend is not unique to Israel, but it is particularly significant given that AI reduces the uniqueness of coding skills, turning them into a commodity. If this trend continues, Israel's competitive edge could erode significantly.2

Another vulnerability is the growing weakness of Israeli startup companies, which historically formed the backbone of the country's innovation and the foundation of the "Startup Nation" brand. The AI revolution demands immense resources – energy, computing power, and sophisticated algorithms for model training – that most startups cannot provide. As a result, innovation is shifting back to large technology companies, academia, and governments, leaving startups struggling to compete. In 2023, for the first time in the industry's history, more Israeli startups closed than were founded. Another sign of decline is the plunge in venture capital funding; according to estimates, Israeli startups were expected to raise $20 billion in 2024, but in reality, raised only about half of that.2

This development indicates a profound shift in the traditional "Startup Nation" model, which was based on independent innovation and early-stage venture capital funding. Israeli companies, especially those operating in resource-intensive AI fields, are now required to consider deeper collaborations with multinational corporations (MNCs) or leverage government funding programs, such as those offered by the Israel Innovation Authority 3, to acquire the necessary resources and achieve significant scale-up. Multinational corporations play a vital role in Israel, with 434 R&D centers employing one-third of the high-tech workforce and accounting for 40% of total R&D expenditures. They represent 60% of Israeli high-tech exports and exhibit a 20% higher productivity rate than local technology companies.4 Additionally, they accounted for 69% of the value of M&A deals in 2024, highlighting their central role as a growth engine and a gateway to global markets.4 This reliance on multinational corporations becomes a critical component of Israeli companies' growth strategy.


Regulatory, Tax, and Cultural Aspects


Establishing a company and conducting business abroad involves a deep understanding of local tax laws. For example, companies registered in Delaware, USA, must ensure that tax reports are filed and taxes paid by March 1st to maintain good standing.5 Beyond that, entering an international market poses many additional challenges, such as cultural differences, compliance with local regulations, complex logistics, and managing cross-border supply chains.6

It is crucial to be aware of local employment laws and regulations in each country, cultural differences affecting communication and interaction among employees, work permit and visa requirements, recruitment procedures, compensation and benefits structures, and tax and payroll laws.6 Ignoring these factors can lead to operational difficulties, legal delays, and damage to the company's reputation.


Growth Opportunities in International Markets


Alongside the challenges, significant growth opportunities exist for Israeli companies in international markets.


Promising Sectors (Fintech, AI, Cyber, Green Energy, Biotech, Smart Transportation)


Opportunities exist across a wide range of sectors in various countries. In Hong Kong, for example, there is high demand for Fintech, logistics, and smart city solutions. In Taiwan, the leading sectors are semiconductors, ICT, and green energy. In China, there is significant potential in artificial intelligence, renewable energy, and biotech. Additionally, the space and aeronautics sectors, as well as smart transportation, offer significant growth avenues.7

Artificial intelligence remains at the forefront of technological development in Israel, and Israeli companies are influencing a wide range of sectors, from AI to digital health, reshaping global industries.1 The Israeli cybersecurity sector is particularly strong, with seven of the world's top ten cybersecurity companies maintaining R&D centers in Israel, leveraging the country's deep expertise in cyber defense.4 This sector raised $4 billion in 2024, more than double the previous year, indicating a significant increase in demand for cloud and AI security solutions.1


International Collaborations and Funding Programs (e.g., Israel Innovation Authority Programs)


The Israel Innovation Authority offers dedicated tracks to encourage international collaborations. The "International R&D and Pilot Collaboration Fund" track encourages cooperation in research, development, and implementation of innovation-based technologies across all fields. This track helps Israeli companies grow through strategic international partnerships, access to knowledge and technology from outside Israel, feasibility testing, and breakthrough and scale-up of their products in international markets. All this aims to increase the competitiveness of Israeli companies in the global market.3

The track is intended for Israeli companies from all industries interested in developing or significantly upgrading technologies with an international partner, or for companies with mature products for pilot programs interested in testing them with an international partner and paving their way to new markets and activity channels.3 Benefits provided under the track include a grant of 20%-50% of the budget approved by the Research Committee, with possible additions for Development Area A and Gaza Envelope regions. Additionally, a matching grant from the foreign government may be provided to the foreign partner, or assistance and investment from the partner in consulting, various services, and access to resources in the form of In-Kind.3 Companies can submit an application in the personal area on the Israel Innovation Authority website, and choose the appropriate track (international R&D programs, pilot programs with international entities, or programs with multinational corporations).3


Global Market Entry Strategies and Practical Tools for Managers


To succeed in entering international markets, a comprehensive strategic plan is required that combines a deep understanding of the market, product and message adaptation, and the use of advanced technological tools.


Building a Comprehensive Go-To-Market Strategy


A market entry plan is not a one-time action, but a comprehensive response to the entire lifecycle of the service or product.8 It is designed to address and focus on the core issues relevant to business promotion and growth. Building this strategy begins with in-depth market research, including understanding market dynamics, consumer behavior, cultural nuances, and competition.6 Existing opportunities in the specific market must be defined, a defined target audience must be focused on, and purchasing processes must be understood, including identifying influencers, decision-makers, approvers, and influential forces.

Another critical component is understanding and analyzing business issues that concern decision-makers, and developing a significant value proposition that provides a marketing, strategic, and business advantage when entering the market.8 The product or service must be differentiated from competitors and existing alternatives in the market.8 Product-market fit is key to success in international marketing, and includes addressing cultural preferences (does the product align with local values and customs?), regulatory requirements (does the product comply with market regulations and requirements?), and pricing (does the price match the economic capability of local customers?).9 A strategic plan ensures efficient and effective use of business resources, and helps identify the required resources – financial, human, technological, and supply chain management.6


Technological Tools for B2B Sales Promotion


In the current era, the use of advanced technological tools is essential for promoting B2B (business-to-business) sales in global markets.


CRM Platforms


Customer Relationship Management (CRM) systems are a cornerstone for creating a results-driven customer experience.10 They enable effective communication with the customer and support business goals. In Israel, companies like Elad Systems are considered leaders in the field, providing CRM solutions based on leading global platforms such as Salesforce, Dynamics 365, and Pega.10 These platforms enable lead management, tracking customer interactions, and automating sales and marketing processes. Companies like Veeva, specializing in software, data, and business consulting solutions for R&D, quality, and commercial fields, also offer CRM solutions like Vault CRM, which enable territory planning, roster management, and customer engagement planning, and integrate AI into their platform to improve customer engagement.


Lead Generation and Sales Enablement Tools


Next-generation tools help build strong relationships with potential customers and maximize B2B sales.11

  • Growbots: A sophisticated artificial intelligence system that combines machine learning and serves as an automated platform for outbound sales. This tool essentially mines a database for relevant leads by analyzing users' pipeline data, generates insights on where people respond better, and learns as it goes. It integrates with CRM systems and allows for creating customer profiles and scheduling email campaigns.11

  • Attach.io: A tool that allows sales teams to see what happens to documents after they are sent. It provides information on who opened the file, which page was read, and to whom the file was forwarded. This information allows efforts to be focused on interested customers and to know when to draw the attention of others.11

  • Leadfeeder: A platform that allows identifying who visits the company's website even without filling out a form. It connects to the Google Analytics account and uses visitors' IP numbers to identify the company they are from, and adds data from the LinkedIn account. This way, visitors from target companies can be identified and potential leads generated from them.11

  • Lusha: Provides access to a global database of business profiles and AI tools to support effective prospecting and outreach, aiming to help sales teams close more deals.


International Digital Marketing


Digital marketing is a central tool in international marketing, enabling reach to diverse audiences through social media advertising, content marketing, and customer relationship management.9

  • Paid Promotion (Google Ads and Facebook): These tools enable the generation of quality leads by displaying precise ads based on keywords and direct reach to decision-makers when they are looking for solutions.12

  • Organic Promotion (SEO): A critical component of a long-term B2B marketing strategy. Creating high-quality and focused content, such as blogs, professional articles, and guides, improves website ranking in search engines and attracts potential customers.12

  • Social Media – LinkedIn: The ideal platform for B2B marketing. It allows direct reach to business decision-makers, and through quality content and targeted ads, the business network can be expanded and credibility built with potential customers.12

  • Email Marketing: Email campaigns provide a direct channel for communication with the business target audience, allowing personalized content such as offers, guides, newsletters, or relevant updates to be sent directly to decision-makers' inboxes.12

  • Content Marketing: Creating personalized content that speaks the language and culture of the audience is key to success.9 It is important to ensure the message is culturally aligned and to build relationships with local influencers or professionals.9


Adapting Israeli Sales Culture to the Global Market


The approach to sales has changed significantly. Many businesses now understand that "force-selling" products is not effective. The preferred approach is to "sell with the mind, not with force" – to appeal to the customer's heart, understand their needs and pain points, and only then offer a solution.13 The proposed solution is the product being sold, but its "packaging" is tailored to the customer's needs. This sales strategy improves the entire process, makes the product more relevant, valuable, and meaningful, thereby helping to reach the customer's heart and wallet.13

Setting realistic goals allows for building a structured roadmap with clear and precise objectives, and helps guide the sales team.13 It is important to focus on the unique advantages of the business and formulate a business story based on these advantages compared to competitors.13 This story can be used in all sales processes, both at the marketing level and during face-to-face sales stages or with sales representatives over the phone.13

The Israeli market exhibits a unique psychology, where the Israeli investor, accustomed to crises, does not price the dangers of the present, but rather the reward of tomorrow.14 Capabilities demonstrated in certain areas, such as defense technology, translate into growing global demand for Israeli technology.14 Understanding and leveraging this perception, along with adapting to cultural nuances in target markets, can be a significant advantage.


Measurement and Evaluation: Key Performance Indicators (KPIs) and Goal Setting


Systematic performance measurement is essential for success in international markets. Key Performance Indicators (KPIs) provide a clear picture of the effectiveness of sales strategies.


Key Performance Indicators (KPIs) for Sales Development Representative (SDR) Teams


Sales Development Representative (SDR) teams play a critical role in lead generation and driving growth. Measuring their performance is essential.

  • Quota Attainment: The average for Sales Development Representatives in Israel is 57.5%.

  • Operational Metrics:

  • Touchpoints per account: A range of 8-16 touchpoints per account.15

  • Accounts and leads owned per rep: 75-125 accounts per rep, and 100-300 leads per rep per month.15

  • Accounts touched per month: Approximately 80-101 accounts per month.15

  • Calls per day/week/month and call connection rate: It takes 18 or more dials to connect with a potential customer over the phone, and call-back rates are less than 1%.15 Reps see an average of 4.4 connections per 100 touches.15

  • Emails sent: 70 tailored emails per week.15

  • Email response rates: Most cold emails receive a response rate of 1% to 5%.15

  • Meetings booked/scheduled: 5-25 meetings per month.15 Outbound SDRs generate 15 meetings per month, with an 80% show rate, leading to 12 meetings held per month.15

  • Qualified leads/sales accepted leads/sales accepted opportunities: The lead-to-opportunity conversion rate for SaaS companies is 12%.15 58% of SDR-qualified leads become opportunities.15

  • Strategic Metrics:

  • Pipeline generated: SDRs generate between 46% and 73% of the pipeline.15 For companies with an Annual Contract Value (ACV) below $25k, SDRs generate $191k in monthly pipeline. For companies with a higher ACV, they generate $600-700k in monthly pipeline.15

  • Closed revenue from qualified leads: 22% of SDR-sourced opportunities result in closed-won deals.15

Consider the SDR:AE (Sales Development Representative to Account Executive) ratio, where the average is 2.6 Account Executives for every 1 SDR.15 Also, consider separating Inbound and Outbound roles, with 36% of companies using hybrid roles, and generally there are two Outbound SDRs for every one Inbound SDR.15


Success Stories as Inspiration and Role Models


Success stories of Israeli companies in global markets serve as inspiration and demonstrate the potential inherent in international expansion.


Examples of Israeli Companies that Succeeded Abroad


Israel is known as a startup powerhouse, and this can be seen across a wide range of industries:

  • Consumer and Industrial Products: Many Israeli companies have succeeded in exporting textile products, cleaning products, gardening products, and household goods to markets like the USA, through distributors and large retail chains.16 Examples include irrigation product companies that entered new online sales categories, and locking product companies that signed distribution and manufacturing contracts with leading global companies.16

  • Cosmetics: The Israeli cosmetics industry enjoys significant international success. Companies like Dr. Fischer, Lavido, Christina, Kamedis, Sebocalm, SR Cosmetics, Premier, and HL Cosmetics are well-known names globally.17 Dr. Fischer Group, for example, employs over 1,000 people and has an annual turnover of approximately $100 million from abroad, with products sold in the USA, Australia, Cyprus, and Europe.17 Christina produces 25,000 products daily and markets to 62 countries, sold in luxurious spas worldwide.17 SABON was acquired by the French cosmetics giant Yves Rocher for over 100 million Euros, and its products are sold in the USA, the Caribbean, the Far East, and Europe.17

  • Technology and SaaS: Israel is an innovation hub in the SaaS sector, with leading companies like monday.com, Bringg, vcita, Orca Security, HiBob, Snyk, and Lusha. These companies provide solutions in project management, logistics, cloud security, human resources, cybersecurity, and customer relationship management for small and medium-sized businesses.

  • Tondo Smart: An Israeli company developing smart lighting solutions for urban environments, transforming streetlights into intelligent and energy-efficient systems, and integrating additional smart city applications.1

  • Cyberark: A global cybersecurity company specializing in identity security and privileged access management.1

  • Navina: A digital health platform that raised $55 million in a Series C funding round, used by over 10,000 healthcare professionals in 1,300 clinics.1

  • Xtend: A startup that gained international attention for its AI-powered drones used in military operations.1

  • AppsFlyer: A leading unicorn company in marketing and sales, enabling brands to enhance customer privacy while providing exceptional experiences.18

  • Lightricks: Develops popular video and photo editing apps, including the well-known Facetune.18

  • SolarEdge Technologies: A global leader in DC power optimizers in the solar market.18

  • Elementor: A leading website builder platform on WordPress, serving over 5 million websites.18

Israeli technology companies continue to demonstrate exceptional resilience and innovation in 2025, adapting their business models to the changing reality, investing in new technologies, and exploring new markets, despite geopolitical tensions and economic challenges.1


Conclusions and Practical Recommendations for Israeli Managers


Expanding into global markets is an essential strategy for Israeli companies, not only for growth but also for strengthening business resilience and diversifying risks. The current business landscape presents complex challenges but also holds significant opportunities.

Here are practical recommendations for Israeli managers seeking to succeed in the international arena:

  1. Develop a Resilience and Distributed Growth Strategy: Given the geopolitical impacts and volatility in the local capital market, Israeli companies should adopt a strategy that emphasizes risk diversification through a strong global presence. This includes not only expanding sales but also exploring more flexible operational models that can cope with internal disruptions.

  2. Leverage Collaborations with Multinational Corporations and Government Programs: The traditional "Startup Nation" model is changing, and venture capital funding alone is insufficient, especially in resource-intensive AI fields. Israeli managers should proactively seek strategic partnerships with multinational corporations (MNCs) interested in Israeli innovation, and utilize the funding and support programs of the Israel Innovation Authority, which offer grants and access to global markets and knowledge.

  3. Invest in In-Depth Market Research and Cultural Adaptation: Before entering a new market, it is crucial to conduct thorough market research that includes understanding cultural nuances, consumer preferences, regulatory requirements, and local pricing structures. Adapting the product, marketing messages, and sales strategy to the local culture is critical for success.

  4. Adopt Advanced Sales Technologies: To maximize B2B sales potential in the global arena, companies should invest in leading CRM platforms and AI-powered Lead Generation and Sales Enablement tools. These tools enable efficient lead identification, focused customer relationship management, and accurate tracking of sales performance.

  5. Develop a Targeted International Digital Marketing Strategy: Judicious use of paid promotion, organic promotion, LinkedIn, email marketing, and content marketing, while adapting to different languages and cultures, will enable companies to reach broad target audiences and build credibility in new markets.

  6. Adapt Sales Culture to a Customer-Centric Approach: Sales teams should adopt a "sell with the mind, not with force" approach, focusing on understanding customer needs and pain points and offering tailored solutions. Setting clear goals, focusing on competitive advantages, and formulating a compelling business story will strengthen sales capabilities.

  7. Data-Driven Performance Management: Implementing clear Key Performance Indicators (KPIs) for sales development and sales teams, and systematically tracking them, will enable managers to identify strengths and weaknesses, make data-driven decisions, and continuously optimize sales processes.

Implementing these recommendations will enable Israeli managers to successfully navigate the changing global business landscape, leverage the unique advantages of Israeli innovation, and ensure sustainable growth in international markets.

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