A growing trend: Israeli tech companies’ HQ’s migrating to the US

  (photo credit: INGIMAGE)
(photo credit: INGIMAGE)

In recent years, there has been a trend of Israeli tech companies relocating their headquarters, center of operations, and C-suite executives to the United States. While this transition presents a variety of challenges, it also offers a host of benefits that can significantly improve the chances of commercial success for these companies.

One significant challenge Israeli companies may face when moving to the U.S. is adjusting to cultural differences. The U.S. business culture is often more hierarchical and less forgiving of mistakes compared to the Israeli culture, which can be difficult for employees to adapt to. There may also be language barriers or misunderstandings due to different communication styles.

Another challenge is managing operations across two locations in Israel and the U.S. This requires careful coordination and communication to ensure both teams are working towards the same goals. It can also be difficult to maintain company culture and a sense of unity when employees are located in different countries.

There are also operational challenges that may arise when relocating to the U.S., such as navigating different laws and regulations, finding suitable office space, and adapting to different business practices.

Despite these challenges, the benefits of moving to the U.S. often outweigh the difficulties. One major benefit is access to a larger and more diverse market. The U.S. is home to a vast number of potential customers and partners, and being located in the country allows Israeli companies to better tap into this market.

Another advantage is the ability to attract and retain top talent. The U.S. is home to many highly skilled professionals, and being based in the country can make it easier for Israeli companies to hire and retain top talent.

Finally, relocating to the U.S. can provide access to a range of funding opportunities, including venture capital and private equity. This can be particularly important for Israeli startups looking to scale and grow their businesses.

There are several Israeli tech companies that have successfully migrated their headquarters to the U.S. and have seen significant commercial success as a result. Examples include Waze, CyberArk. Waze, a mapping and navigation company founded in Israel in 2006, moved its headquarters to the U.S. in 2013 and was acquired by Google for over $1 billion. Since the acquisition, Waze has continued to grow and has become a popular mapping and navigation app globally. CyberArk, a cybersecurity company founded in Israel in 1999, moved its headquarters to the U.S. in 2014 and went public on the NASDAQ stock exchange. Since going public, CyberArk has seen significant growth and is now a leading provider of cybersecurity solutions globally.

HUB Security, an upcoming unicorn NASDAQ listing, has also announced plans to relocate its headquarters to the U.S. due to the majority of the company's contracts and expected growth coming from U.S. government entities such as the Pentagon and Lockheed Martin. HUB is another Israeli company that has chosen to move to the U.S. to be closer to its clients.

While many Israeli tech companies that have moved their headquarters to the U.S. have been successful, there are also examples of companies that did not achieve the same level of success. Nonetheless, for some companies it seems like a strategic choice that will allow them to break glass ceilings in growth and expansion, the trick, of course, is doing it right. 

This article was written in cooperation with the US-Israel Innovation Alliance