Israel's northern region, long known for its agricultural and technological potential, is undergoing a significant transformation driven by venture capital and innovation. Speaking with Jerusalem Report Editor-in-Chief Tamar Uriel Beeri as part of The Jerusalem Post's Rebuilding the North broadcast, Erel Margalit, Founder and Chairman of JVP and Margalit Startup City, shared his vision for economic renewal and investment in the wake of recent turmoil.
Margalit described how JVP has been instrumental in fostering technological hubs in the region. About five years ago, the organization established a climate tech, food tech, and ag-tech hub near the Lebanese border, built around Tel Hai College. Before the war, the hub housed over 100 companies, but many were forced to evacuate following October's escalation. Despite these setbacks, efforts to restore and expand the innovation ecosystem are well underway.
"Not all the startups, just about 30% of the startups have come back. The students of Tel Hai are coming back, and many people in the kibbutzim and the city are beginning to come back in a big way," he said. With a big impact fund in collaboration with Israel's Innovation Authority, JNF, Bank Hapoalim, and Deloitte, startups focused on food, climate, and agriculture are receiving support to continue their work.
One standout company is Greeneye, a startup developing AI-driven precision agriculture technology that reduces pesticide use by 90%. "They have a camera and a semiconductor chip that distinguishes between the weed and the crop," Margalit explained.
"Think of it like an inkjet for spraying the field, so they save a lot of the chemicals and really have a very accurate penetration just to the weeds." The company, founded by Israeli military veterans, is now expanding into the U.S., demonstrating the potential of Israel's northern entrepreneurs on a global scale.
Looking beyond the North, Margalit emphasized that Israel's high-tech sector continues to thrive despite economic concerns, including credit rating downgrades by Moody's and S&P. "High tech has become not only a business sector, but also a card for diplomacy," he noted, highlighting how Israel is working with global partners such as the UAE, Saudi Arabia, and financial hubs in New York, Paris, and London.
However, he urged the Israeli government to adopt a more business-savvy budget, ensuring a fairer distribution of resources and more significant economic opportunities for all Israelis. "We need a new chapter after the war," he stated. "A great rebuilding in the North and the South, in the center of Israel. And we need a new chapter to connect to the rest of the world."
This article was written in collaboration with JVP.