Israel sets up hi-tech accelerator program in China
Israeli hi-tech firms can apply to participate in an accelerator program in Beijing designed to help them expand in the gigantic Chinese market, the Economy Ministry announced.
The firms will get all-included professional support from the Sheng-Jing Group – one of China’s largest management consulting and private equity firms – Sheng-Jing senior partner Sherrie Wang told The Jerusalem Post last Sunday, while the Israeli firms pick up the tab for personal expenses and the Israeli government pays for office space.
“The next step for us to further engage with the Israeli ecosystem is naturally the opening of the Israel-China Accelerator Program. We are proud to partner with the Israel Ministry of Economy and Industry in this initiative,” Wang said.
Any Israeli hi-tech company can apply – with a deadline by the end of October – and five firms will be selected for the inaugural program, Wang said, which is expected to start in December. Some 15-20 Israeli employees will then spend half a year based in the Chinese capital.
The ministry and Sheng-Jing will select companies that don’t necessarily offer the most innovative and exciting technology but that are most likely to succeed and expand in China with a business plan.
“The Chinese market is a huge potential market for Israeli start-ups, but it is one of the more complex markets in which to operate. Cultural barriers, language barriers, different business practices, a different set of rules are just some of the obstacles facing an Israeli company, especially a technology company that is trying to succeed in China,” said Ofir Gur, the Israel Embassy’s commercial attaché in China.
Some 50 Israeli firms are expected to apply for the program, ranging in fields from software to medical devices to TMT (technology, media & telecommunications).
The selected companies will each receive a specialized mentor, and the Israeli employees will spend the first three months learning about Chinese business culture and regulatory concerns. For the last and more immersive three months, the Israelis will devise business development and marketing plans, along with meeting with potential customers and investors as they tour innovation hubs such as Shanghai and Guangzhou on road show-based trips.
“Sheng-Jing’s cross-domain network of industry experts and leading CEOs, combined with the investment ecosystem of Peak-view Capital, position the new accelerator program as a unique opportunity for Israeli hi-tech companies aiming to enter the Chinese market with success,” said Wang, adding that the program’s Rolodex of Chinese entrepreneurs and senior management teams would prove invaluable to an Israeli start-up.
Sheng-Jing, via its Peak-view investment arm, has already invested nearly $100 million in Israeli start-ups in the past few years, along with providing funding for Israeli venture capital and private equity firms like Jerusalem Venture Partners, Vintage Investment Partners, Viola Group and Canaan Partners.
The Chinese equity firm has also hosted the Global Innovation Awards Competition, which Israeli startups won in 2015 and 2016. Some 180 Israeli start-ups previously entered the local stage of the GIA competition in order to win awards worth $1.5m. and gain exposure to leading Chinese investors.
Sheng-Jing has invested a total of RMB 20 billion ($3b.) in major Chinese tech companies such as Alibaba – which is the Chinese version of Amazon – and Baidu, the dominant local search engine. The firm has also trained some 30,000 Chinese entrepreneurs.