New High Tech vs. Old High Tech at the IVA

Israeli hi-tech may be down – but it certainly isn’t out. That’s the conclusion you would have to reach if you spent time at Tuesday’s Israel Venture Association annual conference. The IVA brings together investors – VC’s and angels – with Israeli companies looking for funding. Over the past couple of years, the organization has been responsible for getting tens of millions in funding for Israeli companies. At the IVA convention, investors and industry folk meet, with the idea that some deals will emerge from the balagan.

While I attended some of the sessions, I found the “startup pavilion” most interesting. While many of the companies presenting in the organized sessions – with sessions on gaming, telecom, cleantech, mobile, and “traditional” areas like semiconductors – were startups too, they were “mature” startups, who were already well funded and, in many cases, already making money. The startups I spoke too were far younger, although some were on the verge of signing contracts (they said) in the areas they specialized in. Some of the more promising ideas: a company that has figured out a way to conduct wide-scale and accurate TV and radio ratings, a better system for oil and water exploration, and an easy way to move pictures between different social network photo sites.

There were also in-depth sessions, as I mentioned, with VC’s choosing companies in their portfolios to present their technology at the show. I went to a couple of them to see the presentations, as did many others. I made sure to check out the Cleantech presentations, sponsored by the California-Israel Chamber of Commerce. Very nice, with discussions of what might be one day great technologies that will save the environment. Of course, with Cleantech a hot area for investments – private and government – the session was jam-packed.

But the discussion was a bit too theoretical for me – lots of “ifs” and “we believes” and “at some point in the futures.” In other words, there are a lot of great ideas and a lot of possibilities – as well as a lot of speculation. A little bored (to tell the truth), I moved on to another session – the one in the next room, called “Semiconductors.”

Well, if I was bored at Cleantech, I’d probably end up taking a nap at Semiconductors! I mean, could there be a drier, less “modern hi-tech” topic for discussion? Apparently, most of the people at the show felt the way I did, because there were barely two dozen people in the room, as opposed to the couple of hundred in the Cleantech room (as well as at the other presentations). As it turned out, though, there was plenty to hear in Semiconductors – plenty of great ideas that are much more likely to change the world – and make their investors a lot more money – far more quickly than Cleantech investments will, at least for now. Let’s just say that the two companies I saw presentations for – Sandlinks, and especially Siverge – have amazing products that will really impact on society.

The lesson? DON’T follow the crowd – it’s usually as lost as you are! For Israel, “old,” tried and true hi-tech is where it’s still at!