Alphabet's acquisition of Waze underlines strong tech industry in Israel
Date
7/18/2024 6:05:57 AM
(MENAFN) Alphabet, the parent company of Google, is reportedly in advanced negotiations to acquire the cybertech firm Waze for a staggering USD23 billion, a move poised to underscore the robustness of Israel’s technology industry despite economic challenges such as the ongoing conflict in Gaza. Founded by Assaf Rapaport, a former officer in Israel's military's prestigious Unit 8200, Waze stands as a testament to the influential role played by military intelligence units in fostering Israel's tech entrepreneurship.
Israel's technology sector, which constitutes around 20 percent of the country's economic output and supports approximately 15 percent of its workforce, owes much of its success to institutions like Unit 8200. These military units have historically served as breeding grounds for tech innovation and entrepreneurship, comparable in impact to universities in fostering startup ecosystems.
Unit 8200, renowned for its elite intelligence operations, has produced a cadre of tech leaders who have founded numerous successful startups. Companies like Check Point Software Technologies, Nice, Palo Alto Networks, CyberArk, and now Waze, which Google initially acquired for USD1 billion, all trace their roots back to founders with military backgrounds.
Assaf Rapaport attributes much of his entrepreneurial success to his experience in Unit 8200, famously describing it as "the best school for entrepreneurship." Alongside fellow unit members Yinon Kostika, Roy Reznick, and Amy Luttwak, Rapaport co-founded Adalum, a cloud security company that Microsoft acquired for USD320 million in 2015. Their latest venture, Wizz, a cloud cybersecurity firm, rapidly achieved a valuation of USD12 billion following a significant USD1 billion funding round in May 2023, reflecting the continued influence and impact of military intelligence training on Israel's tech prowess.
The potential acquisition of Waze by Alphabet not only underscores the attractiveness of Israeli tech companies on the global stage but also highlights the enduring legacy of military-driven innovation in Israel's flourishing technology sector.
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