According to leading figures in Israeli tech, the UK tech industry can boost its global reach and encourage growth by striking new trade deals with Israel.
Trading relations with Europe have become more complicated since the UK’s exit from the EU. The government has been looking for new trade deals to fill the void left by the loss of free market access to its largest trading partner.
Anne-Marie Trevelyan, the UK’s international trade secretary, announced in July that the UK was in talks with Israel to expand its trading relationship, with a particular emphasis on increased cooperation between the nations’ tech industries.
As eToro’s Daniel Moczulski mentioned, this is an important step in increasing UK tech’s global reach.
“By improving relations between the UK and Israel’s tech scene on a broad level,” Moczulski explained, “we can hopefully encourage more of these promising companies to choose the UK as the first rung of the ladder when it comes to international expansion.”
Moczulski said that the UK tech industry has a significant international appeal due to its “very well-established financial and tech sectors,” but it could benefit from improved cooperation with foreign tech hubs such as Israel. “Because of its nature, Israel has had to take a global approach to solutions, and this approach can help the UK look beyond the local market.”
Moczulski also stated that by reaching out to the international tech community more, “the UK tech and fintech scene can gain exposure to new ideas and products, improving competition and innovation.”
The Tel Aviv-based digital stock trading company was founded in 2007 and has since established a significant presence in the UK, with its European business being managed by its secondary headquarters in London.
According to a Silicon Valley Bank report based on Dealroom data, there are more than 150 Israeli startups with offices in Europe.
Israel has become a leading tech hub in its own right, with over 90 unicorn companies. However, Israeli startups are increasingly establishing a presence in the UK: Gett, a transportation management startup, and Plus500, a fintech company, were both founded in Israel but now have headquarters in London.
Per the Rapyd, an Israeli-founded fintech unicorn that has since relocated its headquarters to the UK capital, London is seen as an appealing option for Israeli tech firms looking to establish a presence.
Investors in Israel are increasingly supporting tech startups in Europe, with the total value of rounds with one or more European investors in Israel-based startups reaching $4.5 billion in the first half of 2022.
As Sarel Tal, VP EMEA at Rapyd commented: The entire world can benefit from hi-tech innovation by fostering collaboration between the thriving British and Israeli tech communities,” and UK tech could benefit from the “availability of talent on both the technology and business sides.”
“The UK and Israel are both modern, hi-tech services superpowers, but our current trading relationship is based on an agreement from 1995,” Trevelyan said of the increased cooperation between the two tech industries. “We want a deal that capitalizes on British strengths while encouraging innovation and expanding opportunities for small and medium-sized businesses across the country.” – she added.