Israeli consulate’s ‘biz dev’ chief builds high-tech links

At the Sheraton Hotel in Palo Alto in early July, the Justines Room was crowded with people who were standing in order to hear presentations by 10 Israeli information security companies. The 150 chairs had already been filled.

It was a reminder that while the violence in the Middle East has taken over the front page, in the high-tech world, business deals continue to proceed and venture capital still flows -- albeit at a reduced level -- between U.S. and Israeli companies. The conference's main organizer was Amon Agassi, the director of business development at the Consulate General of Israel in San Francisco. His job is to strengthen economic relationships between the two countries by "raising possibilities," as Agassi puts it, for American companies to partner or invest in Israeli companies. "We are supplying the petri dish," he says.

Israel is known for its expertise in high-tech, and this event was received warmly in Silicon Valley.

"It was extremely well-organized, and he managed to get all the right people -- investors, analysts, some customers, " says Hezy Yeshurun, chairman of San Mateo-based ForeScout, one of the participating companies. "We met with people we've been trying to meet for a long time."

Agassi, 36, who comes from Tel Aviv, has been director of what's called "biz dev" for less than a year, but he has already organized two conferences and a third one is coming up. Formerly the COO of a company providing online stock quotes, he holds degrees in economics and law.

He started working at the consulate the week before Sept. 11. "My first thought was, 'Oy vey. This is so horrible.' My second thought was, 'Now people will know what it's like to live in Israel.' My third thought was about business."

There are business opportunities for Israeli companies, despite the general bleakness of the economy. In the aftermath of Sept. 11, security has become a top priority -- and some of the world's leading information security companies are Israeli, Agassi points out. Other sectors with active opportunities include data storage, biotech and medical devices.

At the consulate, Agassi provides current information on industry trends, identifies investment opportunities and answers requests for American as well as Israeli companies looking for strategic partners. Also, he helps set up face-to face meetings, both in the United States and in Israel.

In May, his office arranged networking events for a delegation of 13 Israeli high-tech companies who were on a visit sponsored by the U.S. Embassy. That month it also arranged for the director-general of the Israeli Finance Ministry, Ohad Marani, to meet with American venture capitalists and Israeli enterpreneurs here. The next conference Agassi's working on is a gathering of mostly Indian and Israeli high-tech companies in Silicon Valley; it's called "Building Ecosystems of High-Tech Excellence" and will take place in September.

The precipitous decline of the NASDAQ has been much more significant for the high-tech industry in Israel than the Palestinian conflict. But despite the political and economic turmoil, Agassi is optimistic that Israel will be able to maintain its reputation for high-tech innovation.

"We have gone through harder times than these days," he says. "When you look at the evolution of the high-tech boom in Israel, it started after the embargo on Israel after the Six-Day War -- we had to manufacture our own weapons, develop our own technology."

Israel has more start-ups than any other country in proportion to its population, according to a 2000 study by the Telecommunications Industry Association. Even in the implosion of the tech sector, some Israeli companies have managed to attract substantial funding: For example, Atrica, an optical networking company, recently raised $75 million and semiconductor company Mellanox raised $56 million.

"Look, it's hard to be funded these days if you are Israeli, Pakistani, Jordanian, American or English," says Agassi. "All I know is that there's a full house when these Israeli security companies speak."