{"id":3984,"date":"2023-06-27T06:49:26","date_gmt":"2023-06-27T06:49:26","guid":{"rendered":"https:\/\/innovationisrael.org.il\/en\/?post_type=report&p=3442"},"modified":"2023-12-06T07:59:06","modified_gmt":"2023-12-06T07:59:06","slug":"entrepreneurship-that-creates-employment-and-change","status":"publish","type":"article","link":"https:\/\/innovationisrael.org.il\/en\/article\/entrepreneurship-that-creates-employment-and-change\/","title":{"rendered":"Entrepreneurship that Creates Employment and Change"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Just like any startup company in its early stages, the biggest challenge for female entrepreneurs and for those from Israel’s ultra-Orthodox and Arab sectors is raising capital. These entrepreneurs typically lack high-tech industry networking contacts from the army, school or childhood youth movements to help them overcome the financing challenge. The Israel Innovation Authority operates a specially designated incentive program for these sectors. This program, incorporated under the Early Stage Companies Incentive Program, offers preferential conditions for female entrepreneurs and for those from the ultra-Orthodox and Arab sectors, and is intended for startup companies interested in developing and promoting an innovative technological initiative and penetrating the market while recruiting investment from the private sector.<\/p>\n\n\n\n

Dr. Ami Applebaum, Chief Scientist at the Ministry of Economy and Industry and Chairman of the Israel Innovation Authority<\/strong>: “Expanding support for technological initiatives of Arabs and ultra-Orthodox entrepreneurs provides a tailwind to their continued successful integration into Israeli high-tech, encourages R&D, and assists us in realizing the Israeli economy’s full innovation potential. There have already been impressive success stories and we want to see even more entrepreneurs benefitting from these specially tailored tools on their path to success.”           <\/p>\n\n\n\n

Inas Said<\/strong>‘s Rise Nano Optics is a good example. Said, the company’s founder and CEO, has 25 years of experience in working with large technology companies such as Nokia, Ericsson, Siemens, Stratus Technologies and ECI Telecom in Germany, the US, and Israel. During this period, Said acquired a broad academic education in electrical and electronics engineering, in business management, communications, science and telecommunications networks, and in international finance and business administration. <\/p>\n\n\n\n

After returning to Israel 15 years ago, Said turned to founding startups. His initial venture was Galil Software <\/a>in Nazareth, a startup in the software field, which was at the time the first initiative of its kind located in the Israeli Arab sector to integrate Arab engineers and academics into the high-tech industry. Said subsequently founded several other companies in the Arab sector, including Amwal Financial Services that focuses on financial services for insurance companies and Sensai<\/a> which uses AI for analyzing network behavior anomalies in data centers.<\/p>\n\n\n\n

Protecting the Eyes of Diabetics<\/strong><\/h3>\n\n\n\n

The startup company Rise Nano Optics<\/a> (until recently called DCV Pro) was founded by Said in late 2017 with the support of the Innovation Authority. The company develops a medical device called Eye Guard that reduces the retinal damage suffered by diabetes patients and protects the eyes against the development of cataracts and diabetic retinopathy \u2013 eye diseases that can potentially lead to blindness. Eye Guard’s innovation is both in the device itself and in the medical method: the device controls and weakens the intensity of the light entering the eye and blocks certain wavelengths via use of a smart optic filter. The first generation of the product was based on a photochromatic filter with a sensor for measuring light intensity and was developed after initial research at the Technion. Although the lenses worked well, their unique and prominent color dissuaded diabetes patients from using them as they easily identified users as diabetics. “Thanks to this support, we were able to invest in development of the product’s second generation that is based on nano-technology and not characterized by a specific color,” Said explains. “The use of nano-technology facilitated the development of a transparent filter coating that meets the medical requirements of reducing the light intensity in a dynamic manner and obstructs wavelengths that are harmful to diabetes patients.”<\/p>\n\n\n\n

“It is important to understand that prior to this development, no-one identified the connection between harmful wavelengths and the development of cataract and retinopathic disease among diabetics,” Said explains. “We achieved this breakthrough together with the Technion’s Faculty of Medicine while the optic breakthrough was made via collaboration with the Nano-Technology Laboratory at Ben Gurion University.”<\/p>\n\n\n\n

“We are currently engaged in studying the transition to mass production, the addition of new characteristics, beginning a clinical trial, and registering two new patents. We have set ourselves a very ambitious goal,” Said says. “We want to try and insert the material into glass and plastic as an in-vivo component of the manufacturing process, so that the glass or plastic will be delivered by the lenses manufacturer with the particles already embedded and without the need for another layer of coating.”
Said takes pride in his success at enlisting investors from the Israeli Arab sector \u2013 accountants, physicians, lawyers, and businesspeople. “The financing comes mainly from investors in the Arab sector of society.”<\/p>\n\n\n\n


Technology with a Significant Impact<\/strong><\/h3>\n\n\n\n

Elisha Cohen<\/strong> is an ultra-Orthodox high-tech entrepreneur with a background in technology products marketing. Cohen, coming from a family of 14 siblings, grew up in an environment in which startups did not exactly enjoy a place of prominence. “I entered the high-tech field at a young age and despite gaps in my education, I was quickly drawn to the field of entrepreneurship”, he says. “What motivated me was the desire to create a technology that would improve our lives, to create an impact.”<\/p>\n\n\n\n

Cohen was determined not to be held back by his initial lack of technological background. “Slowly but surely, I learned by myself how the world of entrepreneurship works,” he says. “First, I acquired technological knowledge, but the second and most important stage was learning how to transform technology from an idea into a product and money.”<\/p>\n\n\n\n

Cohen founded a company in the wedding industry and then another in the video field. This latter venture failed but proved to be an experience that, as he says, taught him an important lesson \u2013 how to bounce back from a failure. “And then, in 2014, I founded RunMaxi<\/a> \u2013 (formerly called Door-Bell). This is a system based on AI, cloud technology and big data to automize the world of property management,” he explains. “The technology we developed enables us to manage assets almost automatically and is completely compatible with all types of property or client. Our idea enables online management of all aspects related to the property asset, including payments, without the need for a large staff.<\/p>\n\n\n\n


The First Computer in the World to Manage Properties <\/strong><\/h4>\n\n\n\n

During the process, Cohen discovered that this is in fact a huge global market \u2013 valued at billions of dollars a year. “We raised capital from several entities, including two banks, and designed a product we called ‘Neighbor’, that allows the digital management of property assets. We started out with four central features and have now expanded to several dozen. The initiative was targeted at independent property managers and subsequently also for companies managing property on a large scale. After two years, when we were already managing several hundred thousand residential assets, we realized that clients need personalized service and we began to develop a new version that will enable each user to select and adapt the system to his individual needs. After launching the new product on January 1, 2018, our client list grew dramatically but then we discovered that even though each client supposedly had individual needs, all of them ultimately reduced their preferences to the same parameters. In other words, they all wanted more or less the same tool. We decided to teach the computer to do everything the clients had been doing and to cut our costs.”<\/p>\n\n\n\n

At this stage, Cohen applied to the Innovation Authority who approved the idea, thereby enabling him to develop a new technology \u2013 a prototype of the world’s first computer capable of managing property assets. “We purchased one of our own clients \u2013 an Israeli management company \u2013 and together offered the property management computer to thousands of clients at half the cost of the traditional property management method,” Elisha says. “RunMaxi’s system is simple and constantly accessible from any location, allowing transparency and user-friendly monitoring of all the financial and property-related data. The uniqueness of our product is that the client doesn’t need to use our specific app in order to benefit from our service. He can do so from any of the existing popular platforms on the market. In practice, Maxi is a ‘bot’ with human understanding that the clients can “chat” with via SMS, WhatsApp or Facebook, and ask it for a wide range of services.”<\/p>\n\n\n\n


Redesigning the Local Community<\/strong><\/h4>\n\n\n\n

In order to save and function efficiently, the company built a business model that allows it to operate according to geographic distribution. “This model uses CRC (Community Running Community), i.e., the ability of the neighborhood to run itself, and the ability of its local resident service providers,” Cohen explains. “This management method creates a tremendous impact. We realized that it is better, both from a business and an economic viewpoint, to order the services of local neighborhood residents \u2013 they will travel less, arrive faster, their costs will be dramatically lower, and they will therefore also lower the price of their service. Furthermore, because they are part of the community, this interaction also creates a broader base of trust, and so, we began creating city bubbles,” Cohen explains. “Initially we created seven such cities and expanded the long-term impact \u2013 when more people in the neighborhood receive service from other local residents, the entire neighborhood functions better economically. We call this redesigning the local community. This is a win-win situation for everyone.”      
According to Cohen, RunMaxi’s technology is mobilized in favor of the local businesses, and not just the giant corporations. When local businesses prosper \u2013 the community prospers. “And none of this would have happened without the special incentive programs of the Innovation Authority,” he summarizes.     <\/p>\n\n\n\n


Increased Grants for Women, Arabs and Ultra-Orthodox <\/strong><\/h3>\n\n\n\n

According to the Central Bureau of Statistics, although women constitute approximately one third of the world’s entrepreneurs, only 14% of Israeli businesses are owned by women and just 4% of them employ other workers. According to IVC figures, only 7% of the technology startup founders in Israel during the last 17 years were women. OECD data reveals that startups managed by women receive 23% less money than companies headed by men and they have a 30% less chance of achieving an exit. Furthermore, more than half the female entrepreneurs in the technology sector choose to influence and promote initiatives in fields considered difficult to finance \u2013 public administration, health, education, and social services. One of the many reasons for this is that initiatives meeting women’s and community needs encounter difficulty in recruiting funding due to a lack of familiarity or a lack of understanding of the potential involved.<\/p>\n\n\n\n

According to Ayala Miller<\/strong>, Head of High-Tech Human Capital Development<\/strong>: “The specially designated program is designed to provide a response to the under-representation of women in the ecosystem and to help them contend with the central challenges facing female entrepreneurs such as recruiting capital from investors, building and leveraging professional contacts networks and others.”     <\/p>\n\n\n\n

The low female representation, combined with other factors, drove the vision \u2013 the Innovation Authority’s strategic decision to promote women and to create a discourse and programs throughout the Authority which promote a diverse and inclusive ecosystem.<\/strong> The Innovation Authority’s support of the incentive programs for women, ultra-Orthodox and Israeli Arab entrepreneurs is supposed to serve as launchpad for a project’s development and commercialization, and for raising further capital from the private sector. The programs’ preferential conditions are expressed by the level of the grant awarded for a period of two years. Entrepreneurs accepted to the programs receive a grant of 75% of the approved budget in the first year, up to a maximum of 2.5 million shekels, and a grant of 70% of the approved budget in the second years, up to a maximum total of 4.5 million shekels. The entrepreneur must own at least 33% of the company’s shares and must be employed in a full-time managerial role. <\/p>\n\n\n\n


A Platform for Smart Beauty Advice and Makeup Tutorials <\/strong><\/h3>\n\n\n\n

Mira Awwad-Khreish<\/strong>, an MBA graduate with more than eight years of experience in the fields of business development and strategy, decided in 2019 to move over to the role of entrepreneur, doing so by founding Mirrori<\/strong> with the support of the Innovation Authority’s special sub-track for women under the Early Stage Companies Incentive Program. “Mirrori is a platform offering personalized smart beauty advice and makeup tutorials that is based on deep learning technology and big data,” Awwad-Khreish explains. “The platform will allow each user to receive a personal video tutorial that incudes tips on how to create the optimum look for her face using the existing cosmetics in her makeup bag.” She was joined six months ago by a technology partner Dr. Matan Sela, a computer scientist and an expert in the field of artificial intelligence and computerized vision. Another of the project’s partners is the Yarin Shahaf makeup school which supplies professional data and knowledge from the beauty world. <\/p>\n\n\n\n

According to Awwad-Khreish, the finance approved by the Innovation Authority enables her to bring the initiative to fruition. “I am against cataloguing people,” Mira says. “I see myself as an entrepreneur \u2013 not as an Arab or as a woman, but I strongly believe in the power of women everywhere \u2013 in the workplace, in business, and in the world of entrepreneurship. I believe that a supportive environment plays a significant role in a person’s decision, and especially that of a woman, interested in becoming an entrepreneur.”<\/p>\n\n\n\n

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Awwad-Khreish tells of how her father firmly believed in her ability and always encouraged her to fulfill her dreams and succeed. “And when you add a supportive husband and my passion for the world of entrepreneurship \u2013 this field just became a natural choice for me,” she adds. “The product itself is very relevant for women and that is why I decided to apply for this specific program. In addition to the support provided by the Innovation Authority, I also raised capital from private investors, and we intend launching the first version of the product in the next few months. We will offer a computer vision-based personalized advisory service that analyzes the user’s facial contours and advises her accordingly on the best way to apply her makeup.”<\/p>\n","protected":false},"excerpt":{"rendered":"

A medical device that reduces retinal damage in diabetics, the world’s first property management computer, and a platform for smart beauty advice and personalized makeup tutorials \u2013 three technological developments launched with the support of the Innovation Authority that promote women, ultra-Orthodox and Israeli Arab entrepreneurs.<\/p>\n","protected":false},"featured_media":4320,"parent":0,"menu_order":0,"template":"","magazine":[179],"geographic_location":[],"class_list":["post-3984","article","type-article","status-publish","has-post-thumbnail","hentry","magazine-impact-investing"],"acf":[],"yoast_head":"\nEntrepreneurship that Creates Employment and Change - English Innovation Site<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/innovationisrael.org.il\/en\/article\/entrepreneurship-that-creates-employment-and-change\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Entrepreneurship that Creates Employment and Change - 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