The global legal tech industry is a well-established one. There are already several players who control much of the metaphorical board. Naturally, a challenge to any of them would be incredibly exciting to watch. So when Israel started to gain traction as being a force for positive change, people sat up and took notice.
There's a lot to talk about when it comes to Israel, and we're pretty interested in looking at the country, and the impacts on the world it's left in more detail. So let's get right into it, and take a look at what's going on.
Setting the Bar High
So, it’s pretty obvious that Israel is focused on matching the pace of the rest of the word when it comes to global legal tech. They’ve made some incredible leaps and bounds forward over the last few years, and establish themselves as being a powerhouse when it comes to startups.
So, with a $70 billion market cap and over 100 countries traded on NASDAQ, as well as the most significant percentage of startups per capita in the world, you can begin to see why this is the right place for startup companies as well as capital funding. It’s also true that Israelis have managed to create more startup businesses worth a billion dollars than or more than any other country in the world. It’s enough to make you stop and think.
"Given how essential data protection, privacy, and confidentiality are to the legal sector, Israel's reputation for robust cybersecurity is also a potential strength for legal tech startups," said Harold Li, vice president of online privacy and security company ExpressVPN. "Startups can capitalize on this by making sure that they have the right technology and policies in place to protect client data, whether at rest or in transit."
Furthermore, what you’ll also come to notice about the Israelis is that they have a mentality firmly based in ingenuity and resilience. This is because the entire country still operates under the principle of mandatory military service, so all young people spend three years training and living a very disciplined lifestyle. One might argue that this lends itself well to the world of business, where sharp focus and discipline are required to get the best results.
According to Nelia Kovbasa, CEO of GTM Plus and co-founder of Startup School University Edition, “the importance of outsourcing has never been higher, and the Israeli business sector is a good place to look first. With their incredible focus and determination, they can be a valuable asset to any company. It’s a wise decision to make an investment to outsource work, R&D, or even just legal advice to Israeli business, who are rapidly becoming the experts in their industry”.
Are There Challenges?
Despite their steady progress in the global tech industry, Israel still suffers from a few challenges which need to be addressed for the country to prosper truly. Despite being one of the most prosperous countries in the world when it comes to generating start-ups which are worth more than $1 billion, the amount of capital which is being invested into businesses in the country is still lacking in comparison to places like the UK in the USA.
Another issue is that despite being very developed industry, the Israel tech area which is focused on legal capabilities is not exceptionally well known. For the promising entrepreneur in Israel to find an angel investor who is prepared to sync the money into an Israeli based venture, there are considerable challenges ahead. The knowledge that further compounds this particular issue that the majority of the angel investors don’t have the same experience working with Israeli legal tech companies as they do with other industries; therefore they lack the understanding of how best to help their new partners become more well-known on a global scale. On a fundamental level, a core problem for Israeli legal tech industries is simply the lack of influence that other companies use to their advantage every day.
Another issue which can be addressed quite easily is that despite there being an abundance of access to funding for startups in Israel, as the entire country is very pleased to have them, the support isn’t specifically tuned to try and help the particular challenges faced by Israeli startups. A more esoteric form of assistance is vital for making sure that these companies reach their maximum potential, and it’s just not available right now. X has gone on record and said that…
The Hidden Advantage
Yes, there are challenges to overcome when you’re an Israeli entrepreneur. However, there are a couple of advantages that this ever-growing group of people have available to them.
In part owing to perhaps the very goal oriented and results-focused lifestyle which comes from serving in the military, a lot of Israeli entrepreneurs emerge into the industry knowing precisely what they want and how they want to do it. This means that any interactions investors have with them are going to be straightforward and honest, which can be incredibly refreshing in the modern business world. Tech start-ups and lawyers are much more likely to be risk-averse, and will instead opt for a more blunt approach which can work out better.
A lot of Israeli legal tech enterprises are more often than not founded or co-founded by a lawyer, which gives them access to a superior business strategy right off the bat. It’s also worth noting that the majority of Israeli tech startups operate on a B2B basis, with only an estimate of 40% of the industry being a B2C. They also have a robust presence of women in the industry, which provides a new mindset and a new approach to things. While they aren’t necessarily a majority by any means, they do occupy high-level positions and have the power to make radical changes if they’re going to be suitable for a modern company.
At a basic level, it’s this ingenuity and innovation which lends entrepreneurs an advantage over the rest of the world. This is a group of people who know exactly what they want, have been trained to do whatever is necessary to get it, and at the same time have a strong sense of duty and obligation. This can make them ideal partners, or associates, because you’re more likely to have an honest and results-oriented interaction with them. It’s made them a powerful player in the world of legal tech, and while they may not be as developed as other countries in terms of a fully-formed industry and resources, this is a group who are more than willing to catch up.