Israel’s northern region, long recognized for its agricultural and technological potential, is experiencing a significant transformation fueled by venture capital and innovation. In a recent discussion with Jerusalem Report Editor-in-Chief Tamar Uriel Beeri, Erel Margalit, Founder and Chairman of JVP and Margalit Startup City, outlined his vision for economic renewal in the wake of recent turmoil. He emphasized the role of JVP in cultivating technological hubs in the area, particularly through the establishment of a climate tech, food tech, and ag-tech hub near the Lebanese border, centered around Tel Hai College.
This hub, created about five years ago, was home to over 100 companies before the recent escalation of conflict forced many to evacuate. Margalit noted that while only about 30% of the startups have returned, there is a noticeable resurgence, with students from Tel Hai College and residents of nearby kibbutzim beginning to come back. This revitalization is supported by a significant impact fund in collaboration with Israel’s Innovation Authority, JNF, Bank Hapoalim, and Deloitte, which is providing vital resources to startups focused on food, climate, and agriculture.
Among the promising startups is Greeneye, which is pioneering AI-driven precision agriculture technology that dramatically reduces pesticide use by 90%. Margalit described their innovative system, which utilizes a camera and semiconductor chip to differentiate between weeds and crops, likening it to an inkjet printer that selectively sprays only the weeds. Founded by Israeli military veterans, Greeneye is now expanding its operations into the U.S., showcasing the global potential of entrepreneurs from Israel’s northern region.
While Margalit remains optimistic about the high-tech sector’s resilience amid economic challenges, including credit rating downgrades by Moody’s and S&P, he stressed the importance of a more business-savvy approach from the Israeli government. He called for a fairer distribution of resources and greater economic opportunities for all citizens, asserting that Israel needs a new chapter of rebuilding in both the North and South, as well as in the central regions. Margalit highlighted the significance of Israel’s high-tech industry as not just a business sector but also a tool for diplomacy, fostering connections with global partners in the UAE, Saudi Arabia, and major financial hubs worldwide. The ongoing efforts to restore and expand the innovation ecosystem in northern Israel reflect a broader commitment to economic resilience and collaboration on the global stage.
