Most of the news emanating from Israel in the mainstream media inevitably centers on violence, war, and conflict. What many people don’t know is that there’s a thriving startup ecosystem in the country, rated consistently as one of the most innovative in the world. In 2013, there were 61 Israeli companies listed on NASDAQ, more than Japan, Europe, Korea, and China combined. Further, between 2010 and 2013, approximately 381 Israeli startups raised some form of investment, with 88 successful exits at a total of US$8.76 billion. Google’s high-profile acquisition of location mapping startup Waze is one such example.

These figures are even more impressive when we consider that Israeli startups are at a natural disadvantage given their extremely small local market. The total population of the country is only 8 million. Companies are forced, from a very early stage, to look at scaling regionally if they wish to be successful. This doesn’t seem to have affected the entrepreneurial spirit though. Currently, there are approximately 5000 startups operating in Israel, giving it one of the highest rate of startups per capita in the world.

However, while it is still possible to scale operations into American and European markets, it is rapidly becoming difficult to do so due to saturation and a crowding-out effect, says Amos Avner. Avner is a founding partner of StartupEast, a new accelerator trying to introduce Israeli startups and innovation to Asia.

StartupEast has an interesting model. Its acceleration program requires incubated startups to divide their time between Israel and Asia. It also requires startups to have an almost exclusive focus on Asia – and to have a local presence in the region once they graduate.

“It’s important to keep finding new markets and new opportunities,” states Avner.

Amos Avner

Avner is not alone in running the program. Other founders include Amir Ofek and Omri Shamir. All three have diverse backgrounds and experience; ranging from new media, entrepreneurship, and corporate strategy. Avner believes this brings varied knowledge and skill to the table, ultimately helping the startups picked for acceleration.

The idea for StartupEast initially started as a small side project within the Tel Aviv University incubator program – where Avner worked previously. However, once there was increasing interest for the initiative, both from within Israel as well as other countries, the founders felt it would be best served as an independent entity of its own. StartupEast was incorporated approximately eighteen months ago, focusing solely on taking early-stage companies to the next level.

Healthy ecosystems, global appeal

The accelerator is trying to entrench itself in Asia, because of what Avner calls “booming startup activity.” Southeast Asia, China, Japan, and India are all building healthy tech ecosystems, with a wave of funding and acquisition activity, and enough talent to hire the best and brightest in their fields. “We believe it is an ideal opportunity for Israeli startups to take advantage of the existing climate,” he says.

StartupEast has chosen to open an office in Singapore, which, according to Avner, was an easy decision. Its status as a gateway to the rest of Asia, widespread government support for tech startups, and multinational population were factors his team considered closely. “The environment and attitude resembles Israel in many ways. We thought our startups would have no problem adjusting,” he adds.

Funding for the accelerator has come from private capital, as well as a “substantial amount” put in by Samurai Incubate, a Japanese VC firm. StartupEast has also partnered with the National University of Singapore’s Enterprise incubator, solidifying its presence in the country.

The first cohort of startups graduated from the accelerator only a few weeks ago. They were subjected to a unique, four-month-long stint; spending two months in Israel and the remaining time headquartered in Singapore, but traveling extensively across Asia. “We visited Japan, Philippines, and Korea,” states Avner. “The purpose was for the startups to meet with potential investors, partners, and clients thereby getting a feel of the different markets in the region.”

What’s the future?