From Startup Nation to Scale-Up Nation: The Future of Israeli Tech: A conversation with Avi Hasson and Noam Bardin 

For decades, Israel has been synonymous with innovation. It is a country that has mastered the art of turning cutting-edge research into startups that change industries. Whether in cybersecurity, fintech, artificial intelligence, or mobility, Israeli entrepreneurs have consistently built world-class companies with a global impact. But today, the startup nation stands at a crossroads. 

Founders are no longer satisfied with early exits. Now the mission is to build enduring, independent companies that compete on a global scale. 

This was the central theme of a conversation between Avi Hasson, CEO of Startup Nation Central, and Noam Bardin, former CEO of Waze, during a Leadership Circle Unscripted discussion. Their insights highlight what must happen for Israeli startups to bridge the gap between innovation and scale, shifting from a nation of startups to a nation of global tech giants. 

The Startup Nation Central Leadership Circle is a global forum where investors, business leaders, and policymakers connect to explore and support Israel’s high-tech ecosystem through investment and collaboration. This initiative provides a platform for high level discussions on economic resilience, technological breakthroughs, and Israel’s role in shaping global innovation.  

Leadership Circle Unscripted is an exclusive series for members that offers behind the scenes insights into the trends, challenges, and opportunities defining Israeli tech today. 

Learn more about the Leadership Circle here 

The Shift from Tech to Product Leadership 

When Noam Bardin moved to the United States in 2010 to grow Waze, Israeli startups were known for their deep technology expertise but lacked strong product leadership. The focus was on developing cutting-edge solutions, but there was little thought given to how to package, market, and sell those solutions to a global audience: 

“When I left Israel in 2010, Israel was a factory for technology. We knew how to build great technology, but we didn’t know how to sell it, package it, or understand why we were building it. But coming back, I see that we’ve become a product factory. Founders now think about product-market fit, go-to-market strategies, and scaling—much like their counterparts in Silicon Valley.” 

This evolution has been critical in making Israeli startups more competitive internationally. No longer just a hub for technical breakthroughs, Israel is increasingly producing companies with world-class product thinking. 

Cyber and Fintech: A Scaling Playbook 

Israel’s cybersecurity and fintech industries serve as prime examples of how the ecosystem has evolved. In these sectors, companies are no longer just producing great technology; they are scaling into global powerhouses. 

Speaking to Avi Hasson, Noam Bardin described how cybersecurity has developed into Israel’s most mature vertical, driven by a flywheel effect: elite intelligence units train the best minds, who launch startups, scale them, exit or IPO, and then reinvest their expertise back into the ecosystem: 

“Cyber is our most mature vertical. We now have a system where people come out of the army, join a startup, grow within it, and then leave to start their own companies. Founders create employees who become founders. Investors are experts in it. We’ve built a very mature ecosystem that’s either first or second place in the world, depending on who you ask.” 

A similar transformation has taken place in fintech, where Israeli companies have disrupted global payments, banking, and insurance markets. These success stories show what’s possible when product thinking and scale come together. But they also highlight a fundamental challenge that Israeli startups still face across industries. 

From Tech to Product Leadership 

When Noam Bardin moved to the United States in 2010 to grow Waze, Israeli startups were known for their deep technology expertise but lacked strong product leadership. The focus was on developing cutting-edge solutions, but there was little thought given to how to package, market, and sell those solutions to a global audience: 
 
“When I left Israel in 2010, Israel was a factory for technology. We knew how to build great technology, but we didn’t know how to sell it, package it, or understand why we were building it. But coming back, I see that we’ve become a product factory. Founders now think about product-market fit, go-to-market strategies, and scaling—much like their counterparts in Silicon Valley.” 

This evolution has been critical in making Israeli startups more competitive internationally. No longer just a hub for technical breakthroughs, Israel is increasingly producing companies with world-class product thinking. 

Thinking Bigger: Overcoming the Scale Mindset Problem 

One of Israel’s greatest strengths is its nimbleness and resourcefulness—founders know how to do more with less. But this can also be a limiting factor when it comes to thinking big enough. 

Noam Bardin highlighted this issue, explaining how cultural and geographical constraints have shaped the way Israeli entrepreneurs approach growth: 

“We’re a small country. We think small. We think driving to Jerusalem for an hour is a crazy amount of time. But everything is small, and that impacts how we think about problems. If you speak to an American or Chinese entrepreneur, their smallest unit of measurement is 100 million. We need to develop that scale muscle.” 

In Silicon Valley, founders dream in billions. In Israel, even the most successful startups often aim for a fast acquisition instead of long-term market dominance. This scale gap is one of the biggest barriers holding Israeli companies back from becoming the next Google, Amazon, or Salesforce. 

What Israeli Startups Need to Scale 

Many Israeli startups fail to make the transition from a fast-moving, product-driven company to a global enterprise generating hundreds of millions in revenue. According to Bardin, one of the most significant barriers is leadership. 

While Israeli founders excel at early-stage execution, they struggle to integrate international talent when the time comes to scale globally: 

“When you get to $100 million in sales as an Israeli startup, you need to feel like an international company. You can’t keep it too Israeli. An Italian head of sales who has lived 15 years in the Bay Area needs to feel at home in your company.” 

The key is finding the right balance. Keeping Israel’s fast-moving startup DNA is essential, but founders must also be willing to adapt to global expansion strategies. 

From Startup Nation to Scale-Up Nation 

Responding to Noam, Avi Hasson explained that the question of scaling Israeli tech is about more than just business, it is about Israel’s economic future: 

“Israeli high-tech is more critical to Israel than ever before. We are more dependent on tech than Russia is on oil and gas. Fifty percent of our exports come from tech. Twenty percent of our GDP is tech. And the people who make up that industry? It’s a tiny percentage of the population. If we lose 10,000 of them, the country is in trouble. We are a startup with an army. That’s what Israel is.” 

For Israel to continue thriving, its tech ecosystem must evolve. Instead of relying on early-stage innovation and acquisitions, the next wave of founders must build market-defining companies that last. 

“I think the change that happened in the last decade in Israeli tech was really about mindset. You know, 20 years ago, a successful Israeli startup was one that got acquired quickly and for a lot of money. That was the definition of success. Build something amazing, sell it to an American company, and move on. But what’s changed now is that the really ambitious entrepreneurs are thinking about long-term scale. They’re thinking about taking their company public, about being an independent company, about building a massive business that lasts. And that, to me, is the biggest cultural shift in Israeli high-tech. It’s not just about innovation anymore; it’s about staying in the game and winning it.” 

The Takeaway: Scale or Be Left Behind 

Israel’s startup ecosystem has reached a turning point. The talent, ambition, and innovation are all there. The question now is: Will Israel remain a factory for acquisitions, or will it build its own global tech giants? 

What needs to happen next? 

1. Scaling Beyond the First Milestone 

• Founders must optimize for long-term growth, not just quick exits. 
• Scaling from $10M to $100M to $1B in revenue requires a new playbook.

2. Building Sustainable Tech Giants 

• Instead of selling early, Israeli startups must aim to become the next Google or Amazon. 
• This requires vision, investment, and a commitment to global markets. 

3. Strengthening the Ecosystem for Growth 

• Bridging the talent gap with international expertise. 
• Encouraging second-time founders to build bigger companies. 
• Aligning government and business policy to support scale-ups. 
  

Avi Hasson summed up the challenge ahead: 

“We’ve proven that we can build great products. Now we need to prove that we can build global, dominant companies that go the distance.” 

The next decade will determine Israel’s place in the global tech economy. The seeds have been planted. Now, it’s time to scale.