What the Facebook IPO means for Israeli start ups

While it might not seem like there is an obvious connection, Facebook’s recent IPO is going to have a massive effect on Israel’s start up community, and here is why…
Ask anyone around here with a start up and they will tell you that money has been tight since 2008.  Even though there are start ups literally popping up between your toes on the sandy beach of Tel Aviv- many of them hit what is called a “Series A crunch.”  (Series A is the name given to the money you need to raise after you get an initial Angel investment.)
These days start ups are cheap and easy to get going at first, but when you need to take it to the next level there just hasn’t been enough money out there to grow.  The spigot has run dry for quite a few awesome start ups leaving them S.O.L.
But now, the Facebook IPO has literally poured billions into the hands of investors and venture capitalists all over the world.  They have gone from busted flat to flush and they are going to start looking for places to invest.
Chances are, they will be looking here.  Fact is, they are already looking here- Investors, entrepreneurs, and the press have been visiting Israel in droves.  With all the companies that they have seen, I wonder which they are going to invest in.

Buckle up start ups- this is about to become a very fun ride.