The first panel at The Israel Conference in Los Angeles on Thursday was a discussion about the journey from formation to exit for start-ups. Moderated by Randy Ditzler, partner at Sequoia Capital Israel, the panel consisted of three CEOs who have also created successful exits for prior companies.
The common thread in their presentations was the need to look towards the future and the ability to make changes, whether or not they are foreseen.
Trevor Healy, CEO of Jajah, which provides unified communications solutions for large companies such as Yahoo and Comcast, said that they had to convince their VC firm three times that a fundamental change in direction was required. Their competitors failed to make those changes and failed.
Yoram Novick, CEO of Topio, a data replication and recovery company purchased by Network Appliances for $160 million, said that you can’t plan for change, but you must be prepared for it, and seconded Trevor’s experience. He also said that the odds can look long when you are playing against the big players in your space but that creativity and persistence, combined with a strong value proposition, can fortify you.
Yoav Izhar-Prato of Kenshoo, a company in the search engine marketing and affiliate marketing space, explained how they worked out an initial strategy that involved working around the big players, but when they successfully won a customer from them, they went back and decided to take them head on.
“Differentiate yourself and take on the big guys.”
A side question was asked about President Obama’s speech to the Muslim world today, and whether this signaled a change towards the Israeli-Palestinian conflict and what that could mean for Israeli companies and investment.
Randy said he thought it would have no impact. In other words, “the innovation and the value of the technology exported from Israel will trump political shifts.”
Most of the questions from the audience focused on the early stages of business growth, particularly funding, including one amusing observation that VC firms “never say no. They just ask for more information.”
Trevor favored angel investing as a first resource for entrepreneurs to avoid the friends-and-family or self-funding route and the attendant personal pressures on the CEO.
Yoav seconded the importance of external funding as early as possible because of the networking and support system that VC firms provide.
Randy said they’ve done more deals in the first half of this year than all of last year, so don’t believe what the papers say. Investments are being made.
Renee Blodgett is the founder of We Blog the World. The site combines the magic of an online culture and travel magazine with a global blog network and has contributors from every continent in the world. Having lived in 10 countries and explored nearly 80, she is an avid traveler, and a lover, observer and participant in cultural diversity.
She is also the CEO and founder of Magic Sauce Media, a new media services consultancy focused on viral marketing, social media, branding, events and PR. For over 20 years, she has helped companies from 12 countries get traction in the market. Known for her global and organic approach to product and corporate launches, Renee practices what she pitches and as an active user of social media, she helps clients navigate digital waters from around the world. Renee has been blogging for over 16 years and regularly writes on her personal blog Down the Avenue, Huffington Post, BlogHer, We Blog the World and other sites. She was ranked #12 Social Media Influencer by Forbes Magazine and is listed as a new media influencer and game changer on various sites and books on the new media revolution. In 2013, she was listed as the 6th most influential woman in social media by Forbes Magazine on a Top 20 List.
Her passion for art, storytelling and photography led to the launch of Magic Sauce Photography, which is a visual extension of her writing, the result of which has led to producing six photo books: Galapagos Islands, London, South Africa, Rome, Urbanization and Ecuador.
Renee is also the co-founder of Traveling Geeks, an initiative that brings entrepreneurs, thought leaders, bloggers, creators, curators and influencers to other countries to share and learn from peers, governments, corporations, and the general public in order to educate, share, evaluate, and promote innovative technologies.
