Photo: founder of Startup Grind Education and global startup ecosystem builder Shahar Matorin
Israel’s rise as a global innovation hub is often attributed to its strong startup ecosystem, access to venture capital and technological expertise. However, experts say one of the country’s most important advantages is cultural: a willingness to embrace failure as part of the entrepreneurial journey.
Speaking to News.Az, founder of Startup Grind Education and global startup ecosystem builder Shahar Matorin said Israel’s innovation success is deeply rooted in a mindset that encourages risk-taking and views setbacks as valuable learning experiences.
“In some countries, when you fail, you’re ashamed. You lose face and don’t know how to talk to your family or friends about it. In Israel, closing a company is often seen as a natural step in the entrepreneurial journey. Today you shut down a company, tomorrow you start a new one,” Matorin said.
According to him, failure is not viewed as a stigma but as a source of practical knowledge that helps entrepreneurs become stronger and more resilient.
“You cannot become a successful entrepreneur without failing several times. People openly share their failures and explain what went wrong. Others learn from these experiences and avoid making the same mistakes,” he noted.
Matorin stressed that this culture is shaped not only by education but also by family values, social openness and military service, which gives young Israelis significant responsibilities at an early age.
“The military teaches young people how to solve problems, make decisions and take responsibility under pressure. When they enter the business world, they already have real-life experience. That’s why it’s not unusual to see a 22-year-old Israeli entrepreneur selling enterprise software to major international companies,” he explained.
The expert also highlighted the role of government support in the development of Israel’s technology sector. He recalled that in the early stages of the country’s startup ecosystem, the government actively encouraged investment by matching funds raised from foreign investors.
“If entrepreneurs brought one dollar from the United States, the government would add another dollar. This helped establish Israel’s first venture capital funds and laid the foundation for the country’s high-tech sector,” Matorin said.
Today, institutions such as the Israel Innovation Authority continue to support emerging technologies, particularly deep-tech, biotechnology and healthcare projects that require longer development cycles and are often less attractive to private investors seeking quick returns.
Matorin emphasized that Israel’s innovation model relies on cooperation between government, academia, the military and the private sector.
“It’s an ecosystem where everyone works together. Universities and research institutions help transform scientific discoveries into commercial products, while investors and entrepreneurs bring those ideas to the global market,” he said.
The expert noted that a major shift occurred after 2014, when Israeli founders became more confident in building and scaling companies domestically rather than selling their technologies at an early stage.
“For many years, we created technologies and sold them quickly. But over the last decade, more entrepreneurs decided to build global companies from Israel. As a result, the country has produced more than 100 unicorns despite its small size,” Matorin added
News.Az
By Faig Mahmudov
