“The reason you’ve survived layers and layers of difficulties and you’re still here is not because of the soil but because you’re made of good quality. It’s the people, folks!” Mayor Eric Adams poignantly remarked in front of start-ups and venture capitalists in Tel Aviv at the end of his 72-hour trip to Israel last week.
Of course, he’s right. As someone who had the honor of accompanying Adams on his UJA-Federation-sponsored trip, in my capacity as the former highest-ranking Jewish elected official in New York City and as the current CEO of Met Council, the largest Jewish charity fighting poverty in the United States, I can affirm the vital significance of our less-publicized engagements with Israeli businesses, start-ups, and venture capitalists – and what impressed us most: the people of Israel.
Much of the news coverage of Mayor Adams’ trip was understandably focused on his diplomatic overtures, including his meetings with the prime minister, the president, and the mayors of Jerusalem and Tel Aviv, as well as the mayor’s forceful condemnation at Yad Vashem of antisemitism.
Yet some of the most important meetings the mayor had were related to future investments in Israel, learning about innovative Israeli technology, and promoting trade with New York and the United States during this challenging time.
US-Israel trade while venture capital funds are down
Particularly striking is the alarming data which shows that venture capital funding of Israeli start-ups is down 74% so far this year. While investments in start-ups have dropped globally due to a variety of factors, including rising interest rates, the investment decline in Israel is 50% greater than the rest of the world. This stark disparity is widely attributed to the controversy surrounding proposed judicial reforms.
Mayor Eric Adams and the New York delegation participated in a series of significant meetings that explored these concerns while also focusing on how we can collectively boost Israel’s economy.
From discussions with Israeli start-ups to dialogues with venture capitalists and officials from the Bank of Israel, we explored the multi-dimensional challenges posed by the impending judicial reforms, and listened intently to both proponents and protesters with an eye on the future of Israel’s economic health.
ONE HIGHLIGHT of our trip was a luncheon on food tech in Tel Aviv, hosted by UJA-Federation and the Ministry of Economy and Industry. This was an incredible lunch at the Sheraton Hotel, where all the ingredients in the seven-course lunch were from Israeli food tech companies, featuring sustainable fruits and vegetables and vegan options like kosher prosciutto (yes, it was delicious)!
Given my role in leading America’s largest kosher food bank through Met Council, and the more than 20 million pounds of free food we distributed this past year, this luncheon represented an opportunity to explore synergies between Israeli innovations and the needs of food distribution networks in the United States.
The bilateral relationship between the US and Israel has ramifications beyond geopolitics; it’s integral to the economies of both nations. American investments drive Israeli innovation, while Israel’s technological advancements offer significant contributions to various sectors in the United States. This interconnectedness underscores the urgency for both countries to confront and navigate the judicial and economic challenges looming over Israel’s start-up ecosystem.
Mayor Adams closed his trip with words that encapsulate the resilient spirit needed to overcome these challenges: “Don’t stop believing, Israel. All of you who are start-ups, you believed in something. The original start-ups were your parents and grandparents; they believed in something. Israel is a unicorn because of them. Don’t abandon what they built.”
Adams’ visit was about far more than diplomacy or even fighting antisemitism; it was about actively boosting Israel during a time of critical need. This proactive engagement is what sets Mayor Eric Adams apart as a true friend of Israel. As both nations face the uncertainties of proposed judicial reforms and a hyper-partisan political climate, reinforcing the longstanding America-Israel investment relationship becomes more critical than ever.
Given the high stakes, our visit to Israel with New York City’s mayor serves as a significant step toward maintaining and fortifying the strong bonds between Israel and the US. Israel’s best years can still be ahead of it – because the determination, hard work, and talent of its people are still its most valuable asset.
The writer is former chair of New York City’s Land Use Committee. He is a political strategist who serves as CEO of Met Council on Jewish Poverty and an adjunct law professor at Brooklyn Law School.