Yossi Vardi : A leading figure in the international venture capital community, Yossi Vardi has been recognized as one of the "100 People Who Positively Influence the Lives of Jews" along with Warren Buffett. He has been hailed by the Israeli media as the "Father of Israeli Technology Venture Capital", and has twice been honored by the Prime Minister of Israel with the "Lifetime Achievement Award in High Technology".
Globes poster by Yossi Vardi
He believes that the history of Israel's founding is like the history of a startup.
In his mind, entrepreneurs have a "mental illness", and those who have it are destined to become entrepreneurs.
The following is part of an in-depth interview with Mr. Yossi Vardi in Israel, conducted by Globemaker's Executive Producer and host, Wu Qing.
Wu Qing: The Jewish people, like the Chinese people, have gone through a lot of suffering and vicissitudes along the way. Many people say that there are many similarities between the two peoples, for example, both are very cohesive, what do you think?
Yossi: First of all, I would like to say that Israel is very small compared to China. Our population is less than half the population of the big cities in China. I think it's history that has honed Israelis to be more cohesive.
Stills from "Globodyne"
For the past 2,000 years, Jews have been forced to live far from their homeland, scattered all over the world, with no place to stay. All Jews have had to help each other and look out for each other, and a social custom has evolved.
There is a natural affinity for a Jew who sees other Jews in a strange land.
This sense of recognition, trust, and responsibility for each other, and the spirit of charity and support for others, is one of the most important reasons for the success of Israel as a nation.
Globetrotters
Wu Qing: Do you think that the Jewish people are naturally born with this kind of business gene? Is Israel's strength in innovation and creativity related to its bitter past?
Yossi: Both of your hypotheses are valid.
First of all, Jews, historically, have always been forced to move from one place to another. Many European countries do not allow us to own private property, and even have restrictions on the range of jobs we can do.
In these circumstances, Jews have had to start businesses from nothing. This is why Israelis are more inclined to be entrepreneurs.
"Big Brother Worldwide" stills
Secondly, according to Jewish teachings, every child of the Jewish faith has to recite a portion of a Biblical verse in public at his or her Bar Mitzvah at age 13. So for the last 2,000 years, little children have been taught to read and write by their parents from the age of 5, so that they can be educated.
Because of this, for thousands of years people of this race have been literate. This also gives us the advantage to engage in business ventures and become entrepreneurs.
Stills from "Globodyne"
If you go back and look at the history of Israel's founding, it's really a history of startups: When the earliest Jews settled in Israel, it was all desert, with no grass, no agriculture, no industry.
With faith, creativity and talent, and a vision of a better life, the people of Israel made it what it is today. If you take a plane ride over Israel, you will find green spaces everywhere, with vegetation accompanied by irrigation and cultivation systems.
Stills from "Globemasters"
Emily Wu: Israel's strategy, its national policy, to promote science and technology, has had a positive impact on innovation throughout the country.
Yossi: Yes, Israel's top institution of higher education and research, the Technion - Israel Institute of Technology, was founded in 1924, long before the establishment of the State of Israel (note: Israel was restored to the country in 1948).
At that time, Israel could not be called a "state", but only a settlement of 30,000 to 40,000 Jews.
Globes
The University of Hebron, founded in Jerusalem in 1925, and Israeli charities were also founded before the state was established. All of this means that, as early as then, it was realized that both science and technology, as well as the humanities, were important foundations on which to build a state, and necessary safeguards for the diversity of society.
Wooking: When did the real takeoff of Israeli science and technology begin?
Yossi: Looking back at the history of high-tech technology in Israel:
The first stage was the 1960s and early 1970s, when the electronics industry had its first small boom. At that time, the Six-Day War took place. During the war, many countries around the world sanctioned Israel and imposed embargoes, especially on weapons.
We had no choice but to develop electronics on our own. I was about 26 or so at the time and founded a software business.
A still from "Globodyne"
The second phase was the 1970s, when, because of the war and the embargo, my compatriots realized the necessity of independent research and development. And so Israeli electronics and defense technology took off for the first time.
The third phase, the 70s and 80s, saw the rapid development of electronics in the defense sector, and a shift in attention to the civilian market, with an increase in the number of people working in image processing, electronics, and medical devices.
The fourth stage is the mid-to-late 1990s, with the emergence and rise of the Internet, many companies to meet the wind to join the Internet industry.
Stills from "Globemasters"
Today, Israel has a healthy startup ecosystem, with 6,000 to 7,000 small startups specializing in digital technology. At the same time, the life sciences sector is doing very well, and the electronics, technology, and communications industries are all thriving.
It goes without saying that the government has played a big role in making all of this happen, but I think it's more the result of the government, domestic investors, foreign investors, and entrepreneurs*** working together.
Since the 1970s, Israeli companies have been going public on the NASDAQ, the US stock exchange, and the number of companies listed is second only to the US and China, and the total amount of financing is among the highest.
Wuqing: You were one of the first investors in the Internet industry, how did you get into this field in the first place?
Yossi: In the mid to late 90's, my son and three of his friends told me they had a great idea that they were keeping under wraps for a while and couldn't tell me about it yet, but that they really wanted me to invest in them. Half-heartedly, in order to support their dream, I gave them a sum of money.
Four months later, they showed me a new product - the world's first Internet instant messaging software, ICQ - which became so popular that 18 months later, America Online approached us and bought the company for a high price.
Stills from "Globetrotters"
This greatly inspired the young people of Israel, who seemed to suddenly realize the infinite opportunities that the Internet presented, and in just one month hundreds of companies flooded the Internet market.
Wuqing: We know that the Internet bubble burst in 2000, and the development of Internet businesses entered a bottleneck.
Stills from "Global Big Brother"
Yossi: Yes, in 2000, the Internet industry went through its first sifting, and a lot of underperforming companies were forced to close their doors. The companies I invested in inevitably suffered as well. A very large number of investors in the Internet space either divested or moved on to other industries.
Queen Wu: Why did you stay in the Internet industry?
Globetrotter: Emily Wu interviews Yossi Vardi
Yossi: Because I believe in the future of this industry.
I have witnessed the ups and downs of the capital markets from the time I founded my first company in 1969 until now, and in fact, many times the volatility of the market does not reflect the change in the true fair value of the company, but rather the volatility of investor confidence.
After seeing ICQ's user base grow phenomenally without any marketing campaigns, I knew that this was an industry with a future and potential.
Until now, I was convinced that the Internet era had just begun. The industry is not yet mature, and it's too early to tell how it will evolve.
"Big Brother" photo by Yossi Vardi
I think the Internet is an important milestone in the history of human culture and development. It has helped people do things that were previously unimaginable, connecting people from all over the world, even those who were once isolated.
Globally, more and more people are using the Internet to receive and learn from a wide range of resources and knowledge.
This is all part of the magic of our time, and it's very exciting to see it happen. This is one of the key reasons I love technology - it's always about witnessing the extraordinary.
Queen Wu: How do you feel about the return of profits for investors?
Yossi: The financial return is very important, no one will invest without it.
Stills from "Big Brother Worldwide"
But there's more to life than financial returns. Looking back, one would hope that one's life and work were meaningful, and that's an important part of what one seeks in life.
For example, what I do is not just for Jews. I go abroad to help people without caring if they are Jewish, Muslim or any other religion.
Wuqing: Many people have said that it was your perseverance in the Internet space back then that prevented the total collapse of Internet development in Israel.
Yossi: I never felt that one person could dominate the development and destiny of an entire industry , but I've always tried to contribute to the development of the industry, and to keep on helping people, and that's the reason why I've often organized different events. This is why I often organize different events. I hope to contribute to the Israeli Internet industry by doing so.
Stills from "Globes Big Brother"
The government often invites me to share my experiences, and I'm happy to be a constructive citizen for the country.
But I know that it's not enough to do it on your own; it's a collaborative effort, a team, a community, and even a whole country. This is the culture of cooperation that characterizes Israel, where everyone is in the same boat***, where we all prosper, and where we all suffer.
I like to get into a completely new field every four or five years, it keeps me curious, constantly learning and engaging with new people.
Stills from "Globemasters"
Emily Wu : Being an entrepreneur myself, I'm curious about your thoughts on startups. Why are there so many startups in Israel?
Yossi: It's a reflection of the country's "genetic mutation". When it comes to the reasons for Israel's thriving startup culture, people tend to think of government support and subsidies, the diversity of the economy, etc.
The Globes is a great example of a country that has a lot of startups.
Globes: Israel
But I think there's more to it than that: Creativity is a unique quality in Israeli culture. The entrepreneurial, startup spirit requires three pillars: culture, social structuring and social identity, and human mental attitude.
What Israel and China have in common*** is a willingness to struggle independently, a desire to succeed, a willingness to take risks, and a willingness to take risks.
In Israel, we often joke that the reason there are so many entrepreneurs is because the "Jewish moms" behind them have been pushing them.
Stills from "Globodyne"
At the age of five, the Jewish mom was educating her children by saying "We've paid so much for you, and in return, it's not too much to ask you to come back with a Nobel Prize in the future to repay us, is it?"
In fact, "Jewish mom", there is no race or gender, it describes an attitude of mind.
There are a lot of startups in Israel, and in a startup, everyone has responsibilities and duties and needs to make decisions. The structure of a startup is completely different from a big company.
Because everyone in a startup feels like one of the owners of the company, a participant in the adventure.
Globodyne photo by Yossi Vardi
I believe that culture, social identity, and spiritual attitudes are essential elements of entrepreneurship, and that their combination creates an entrepreneurial society that is unique to Israel.
Startups operate with low barriers to entry, which not only give young people from all walks of life the opportunity to enter the economy, but also reflect the inclusiveness of the society, which makes it easy to create a high degree of cohesion.
It's important to foster a strong community amongst startups so that people are willing to help, encourage others, and share resources***. I call this the centripetal effect of social cohesion.
If you go to downtown Tel Aviv, you'll find that there are a lot of meetups, startup weekends, conferences, and so on. People come together at different events to share their decisions, skills and social resources.
Stills from "Global Big Brother"
Emily Wu : In your previous paragraph, I caught a couple of points of information that startups are small, so it's very important that each one of them is carefully selected, one by one.
Yossi: Right.
The quality of partners and employees is decisive for the growth of a company. Especially in the early stages of a company, the quality of employees is the most important factor. Even if you get investments from all over the world, if the people in the company are incompetent and weak in execution, the company will not be able to achieve anything.
When I decide whether to invest in a startup, I look at the quality of the people who work there, the quality of their character, and the quality of their efforts.
After observing and judging, the startups I'm optimistic about do well, and the ones I'm optimistic about don't do well.
"Big Brother"
Wu Qing: How do you decide to invest? Besides people, what other factors do you look for?
Yossi : When I invest, I don't generally look at ideas. Because I think the key to success is not in the idea, but in the execution.
Of course a good idea is very important, but a good idea is not enough. You have to know how to execute, how to choose, and I think the choice is between a good idea and a bad execution, or a not-so-great idea and a really great execution.
Stills from "Big Brother Around the World"
In order to achieve good execution, you have to have really great people. They have to fulfill three things:
First, they have to be very talented. I think of talent as being able to accurately capture and understand the needs of users, knowing how to create products that engage users, and how to utilize products that trigger **** from users.
Second, the startup team has good virtues. Entrepreneurship is a team effort, so it's important for individuals to have good character and be able to rely on and trust.
Third, it's not easy for startups to raise money, so how entrepreneurs use it is also very important, which means financial responsibility.
Stills from Big Brother Worldwide by Yossi Vardi