A venture capital fund and start-up are set to move their funds out of Israel due to a judicial plan. The CEO of payments platform unicorn Papaya Global, Roy Erez, has expressed his concern over the uncertainty that international economic activity can be conducted from Israel.
Erez claims that this could have a detrimental effect on the Israeli economy as it would make it difficult for investors to bring in money into the country. He believes this will limit opportunities for entrepreneurs and hinder innovation within the nation’s tech sector. Furthermore, he argues that businesses may face difficulties when trying to access global markets or attract foreign investment if they remain based in Israel under these conditions.
The judicial plan is yet another obstacle facing startups in an already challenging environment which includes high taxes and lack of government support for innovative companies operating within its borders. With such restrictions imposed upon them, many are now looking elsewhere with hopes of finding more favorable conditions abroad so they can continue their work unhindered by bureaucracy or political interference.