VC funding elements in US-Israel case and application to China-Korea

Abstract

The success of the startups ecosystem that Israel has built has become powerful even in a global context. How could it be possible for such a small country to claim a reputation as the "Startup Nation", and how could the small startups from Israel gain international competitive power and expand their business in the global market successfully? The primary purpose of this study is to identify the elements that brought success to Israeli startups in the global market, especially related to the relationship with U.S. venture capital firms and to find the takeaways to apply to startups in South Korea - specifically, related to the relationship with Chinese venture capitals. The study compares the similarities and differences between the circumstances that Israel and South Korea face and analyzes the Israeli startups' success elements, researching three Israeli companies in depth. The research shows the strong relationship between successful Israeli startups and investors from the United States who placed huge roles in bringing the startups to the global market. Through analyzing the position of Israeli startups in the global market and the relationship with U.S. venture capital firms and conducting interviews and surveys with entrepreneurs in South Korea, the study finds three takeaways from the relationship between Israeli startups and U.S. venture capitals with potential to create more synergy between Korean startups and Chinese venture capital firms.