Startup Nation Central (SNC), a nonprofit organization supported by philanthropists including Paul Singer, Dan Loeb, the William Davidson Foundation, and others, has summoned 65 of its 80 employees in Israel to a hearing before their dismissal.
Founded 13 years ago, SNC is making this move as part of a rethinking of its activities to promote Israel's tech industry. Estimates are that the organization has raised $15-20 million annually to finance its activities.
At this stage, SNC is not closing down and will continue to maintain the building it owns on Lillienblum Street in Tel Aviv, as well as retain about 15 employees who will focus on individual support for certain initiatives in Israel's tech industry.
In recent months, the organization has lowered its media profile, and CEO Avi Hasson, former head of the Israel Innovation Authority, has left his position, which has been filled by a temporary acting director.
Donors who hold pro-Israel positions and inject millions of shekels each year into Israeli organizations will reportedly continue to invest money in Israel in other ways.
"The organization is adopting a leaner structure"
SNC was founded in 2013 by US Jewish philanthropist Paul Singer, CEO of Elliott Management Corp., a hedge fund, and Startup Nation co-author Dan Senor, and Wendy Singer, the wife of Senor's co-author Saul Singer.
Senor remains active on SNC's board of directors today. Singer was later joined by other donors, such as Dan Loeb, founder of the Third Point Ventures (TPV) hedge fund.
Inspired by the 2009 book "Startup Nation," SNC has sought to promote Israel's tech industry by organizing senior delegations to Israel and setting up meetings between Israeli executives, overseas company executives, and senior figures in foreign governments.
In recent years, thanks to the Abraham Accords, the organization has also worked extensively with executives in the United Arab Emirates and Morocco.
The rethinking SNC's founders are conducting of their activities comes during a historic week in which the sale of two Israeli companies, Wiz and CyberArk, for a combined total of more than $50 billion was approved. In such a situation, assistance to the Israeli tech industry, and to Israel in general, might better be provided in different ways.
SNC said, "Startup Nation Central, a non-profit organization that has been connecting Israeli innovation with global corporations, investors, governments, and leaders for over a decade, has decided to strategically change its operating model."
It added, "Due to the maturity of the Israeli innovation ecosystem and its dominance in international markets, the organization is adopting a leaner organizational structure and will now focus on a focused set of high-impact initiatives, aligned with current priorities. This strategic change also includes a reduction in staff, in a way that reflects the more focused scale of activity from now on."
"The organization will continue to serve the Israeli ecosystem and concentrate on focused initiatives where its network of connections, credibility, and experience can provide unique value, support Israel's economic resilience, and continue its leadership in global innovation," it said.
SNC interim CEO Aviva Steinberger said: "Startup Nation Central was founded to meet a need of a certain period, and together we helped shape an ecosystem that is now strong, global, and independent. The evolution we are talking about today reflects this success. As Israel's innovation landscape changes, so must we. By sharpening our focus and aligning resources with today's most strategic needs, we will continue to serve the ecosystem in meaningful and impactful ways."