Proof that hi-tech success goes beyond record investment figures

Every quarter, Israeli media and tech investors hail another three months of healthy, multi-billion dollar and sometimes record-breaking venture capital funding. Mega-deals and lucrative foreign investments are regularly cited as the key measurements of start-up success.While periodic investment reports contribute to understanding investment trends, and certainly make good headlines, they also ignore the successes of the founders that opt to make it all happen on their own and without help of external capital. Such start-ups, commonly known as “bootstraps,” rely on internal cash flow and personal finances.Established in 2009, Tel Aviv-based intent marketing company Natural Intelligence has not raised a cent to date. The firm, which employs approximately 400 workers at its city center headquarters, has delivered double-digit growth year after year. Last year, revenues stood at about $300 million, and 2019 looks certain to bring major growth.“The way to evaluate the economy or companies is vast and there are many methodologies – the amount raised in hi-tech is just one aspect of company success,” Yoav Tzuker, Natural Intelligence Chief Innovation & Ecosystem Officer, told The Jerusalem Post. “Here we offer the other side of the coin. We are a very successful company and we didn’t need investors,” he said.Natural Intelligence is behind a series of online comparison websites, aiming to offer unbiased and succinct information enabling consumers to make confident and informed decisions. The company operates in a wide range of industries, ranging from dating sites to personal loans.“The bottom line is that you have to look at what the company generates – it generates profits,” said Tzuker. “A lot of companies sell dreams, which is good, and through the dream they know how to make people follow them, invest and buy the dream.”According to a report published last week by IVC Research Center and the international law firm ZAG-S&W, Israeli hi-tech companies raised $2.24 billion in the third quarter of 2019, the highest quarterly sum since 2013. Firms have raised a total of approximately $6b. since the beginning of the year.For Tzuker, relying solely on profits rather than opening the door to investment – complete with board members and external pressures – has both advantages and challenges.“We’re focused only on driving our business results and what will make our company grow. We are doing it out of our own pockets, so you have to be much more clever and focused, and understand where to go after checking all the options,”he said.“When you have investors and you have a board, some of them come with really good intentions of helping the company grow, but there are several thought-processes and sometimes that can be difficult for a founder.”Last month, Natural Intelligence was named by Dun’s 100 as the seventh best hi-tech company to work for in Israel, one place behind Facebook. While many hi-tech companies are known for their workplace perks, Tzuker says creating an innovation-friendly environment has been key to ensuring employee satisfaction.“We understand that innovation is a key element for talented people to work in a company. They are looking to challenge themselves,” he said.As part of its efforts, Natural Intelligence has launched an innovation forum, offering workshops and lectures to employees. In addition, the company has opened an innovation laboratory for workers, providing a space to explore and interact with new technologies – including the ability to create virtual reality and 3D experiences.Emphasizing the culture of innovation instilled in the company, 95% of all employees participated in the company’s last hackathon.“There are a lot of moving parts that contribute to the brand called Natural Intelligence, and [they] help us keep our growth momentum,” said Tzuker.“The way we do it, we give the tools to employees to think creatively and innovatively. They’re not only doing it in the innovation forum. We give them the tools to work in their organic teams and implement innovative thinking in their day-to-day work.”