{"id":7171,"date":"2023-12-06T09:05:00","date_gmt":"2023-12-06T09:05:00","guid":{"rendered":"https:\/\/innovationisrael.org.il\/en\/?post_type=report&p=7171"},"modified":"2023-12-06T13:56:26","modified_gmt":"2023-12-06T13:56:26","slug":"barriers-to-scaling-and-growth-faced-by-israeli-startups","status":"publish","type":"report","link":"https:\/\/innovationisrael.org.il\/en\/report\/barriers-to-scaling-and-growth-faced-by-israeli-startups\/","title":{"rendered":"Barriers to Scaling and Growth Faced by Israeli Startups"},"content":{"rendered":"\n
Climate tech startups face unique scaling challenges. They are mostly deep tech, requiring expensive physical assets and equipment, are capital intensive, and have long-term horizons for development from the initial proof of concept stage until commercialization. Until this endpoint, startups need to establish pilot demonstrations and are challenged by the extended period needed to progress from a pilot plant to the sufficient scale and competitive costs required to reach commercial viability. Solutions often address systemic challenges, requiring a collective effort and collaboration between various private and public stakeholders, as well as cross-disciplinary and intersectional thinking. Climate tech solutions can incur both market and technology risks, making the provision of scale-up capital from growth investors a double challenge. A survey conducted among 210 Israeli climate tech companies revealed the main difficulties faced by Israeli companies during their development and growth stages. The distribution of respondents across PLANETech challenge areas was very similar to their distribution among the full data set of climate tech startups, indicating that the respondents were an accurate representation of the broader startup ecosystem. Alternative Proteins was the only sector under-represented in the survey. <\/p>\n\n\n\n
The two primary self-reported difficulties (out of the 13 proposed) were Financing and Capability of Scale Up, followed by Regulation, Distance from Target Market, Pilot Site and Ongoing Operational Costs, in that order.<\/p>\n\n\n\n