Israel Venture Network

From the Ashes of Disaster Grow the Roses of Success

"Of course the financial assistance was necessary, but more than that, it was tremendously important for me to know that I wasn't alone. I was amazed and relived to have IVN's support, " says Amos Hevron, owner and CEO of IT IS*, a printed circuit board assembly company located in Rosh Pina.

For the most part, the Second Lebanon War in July 2006 highlighted and exacerbated longstanding difficulties facing the economic structure of

Northern Israel

, but did not directly cause them. This was not true however for IT IS.

Experiencing serious financial difficulties, Amos moved IT IS from Yokneam to the northern city of Rosh Pina in the summer of 2006 because the rent was more affordable. Unfortunately he moved two weeks before the outbreak of the war. Under constant daily attack for a period of two months, IT IS was unable to produce and deliver product in a timely fashion. Things went downhill quickly and Amos found himself once again having to move in order to reduce expenses, but this time to a garage facility in the Bedouin town of Tuba-Zangryia with virtually no hope of salvaging his company.

In April 2007, IT IS became part of IVN's Economic Reconstruction Initiative (IERI), which targets small to medium size businesses with untapped growth potential. The initiative was established to stimulate business growth in Israel's periphery through a model of consultancy, mentoring and micro financing, combined with strengthening and empowering regional business consultants and MATI's (Small Business Development Centers).

Through IERI, the local MATI matched IT IS with business consultant Tzahy Ravel whose purpose is to guide Amos on a strategic level and lead him from a point of barely surviving to economic growth by upgrading the business and economic infrastructure. Tzahy is an independent, regional business consultant with many years of experience in the business arena. Through IERI, Tzahy received additional training and acts as consultant for 7 additional companies within the IERI program.

At the beginning of the process Amos was unable to plan a week ahead, cash flow crises were a daily occurrence and manufacturing processes were unstable. Since then, Amos and Tzahy have met almost once a week and speak often. IT IS is not only economically stable but already in the first stages of growth. IT IS is at the final stages of getting ISO standard; they have expanded from 6 employees to 14; sales have gone up by over 200%; cash flow is stable to the extent that the bank manager notified IT IS last week that the company is no longer under tight supervision; quality control has improved dramatically; the company acquired much more manufacturing equipment; IT IS is slowly absorbing new customers in order to build a stable and varied customer-base.

Amos Hevron says "Tzahy and I developed a relationship based on trust. He taught me, advised me and positively changed the way I look at my business and the work process. As the business owner, I would make decisions based on emotion and instinct. Tzahy gave me perspective and I trusted him and followed his advice. Now that I have learned the correct way to run and expand my business, I can begin building on the stable foundation that IVN has helped me build. "

When asked about the process, Tzahy said, "As a consultant, my role is not only to help reshape and redefine the business, but also the business owner. It hasn't been a smooth ride but we finally reached a point of trust. I may have acted as a guide, but Amos did all of the hard work."

IERI's mentorship program gives the businesses and the consultants the opportunity to learn from the experience gained by those running established, successful companies. The mentor volunteers his/her time. Whereas the consultant is effective on the strategic level, the mentor provides a more managerial overview. The mentor works with the consultant and occasionally meets with the business itself.

Yair Sakov** was matched with consultant Tzahy Ravel. Together they coach and mentor a number of businesses, one of them being IT IS.

"Working with Yair has been great. We defined our roles from the beginning. We have a relationship based on mutual respect and cooperation," said Tzahy

Yair enjoys the time he dedicates to IERI. "I believe in IVN's mission of creating a fundamental and long-lasting change in Israel's cultural and economic infrastructure. IERI gives me the opportunity to be involved hands-on and be part of this exceptional team. I also enjoy teaching. My role as mentor allows me to do just that. Amos is an extremely creative person. Tzahy taught him how to focus and harness that creativity without destroying it. Tzahy is a real professional with very good business sense. My role is to back-up, support and advise the consultant and provide the perspective beyond the day-to-day."

From the ashes of disaster grow the roses of success!

For more information, Amos Hevron can be contacted at:

~ 04-6860564 ~ 052-2568853 ~ itis2007@bezeqint.net

Spotlight on IVN Members

UBS

UBS is one of the world's leading financial firms, serving a discerning international client base. It is the leading global wealth manager, a leading global investment banking and securities firm and one of the largest global asset managers. With headquarters in Zurich and Basel, Switzerland, UBS operates in more than 50 countries and from all major international centers. UBS creates additional value for clients by drawing on the combined resources and expertise of all its businesses. Learn more about Wealth Management Research, a center of expertise within UBS.

Meeting any financial research needs

UBS Wealth Management Research (WMR) analysts and strategists across the globe provide concise, reader-friendly and relevant research to help clients make confident investment decisions. With a uniquely global reach, they offer analysis on a comprehensive range of asset classes as well as in-depth thematic research on social, demographic and geopolitical trends that influence client investments.
Backed by the resources of UBS Wealth Management & Business Banking, WMR is focused on one goal: to identify the trends and events affecting global and local markets and apply this knowledge in the interests of private clients.
http://www.ubs.com

Elan Moriah

Verint Americas Inc.

President & Corporate Officer

Elan Moriah is President of Verint Americas Inc. and Corporate Officer. Prior to joining Verint in 2000, Mr. Moriah held various management positions with Motorola Inc., where he served as Business Development Manager for Europe, Middle East and Africa, Worldwide Network Services Division and as Vice President of Marketing and Sales of Motorola's paging subsidiary in Israel. Before then, Mr. Moriah worked for Comet Software Inc., as Vice President of Marketing and Sales and as Operations Manager. Mr. Moriah holds a B.Sc., cum laude, in Industrial Engineering and Management from the Technion, Israel Institute of Technology, and an M.B.A., summa cum laude, from the Zicklin School of Business, Baruch College - City University of New York.

Spotlight on IVN Events

IVN's Economic Reconstruction Initiative (IERI) holds its

First Business Network Convention

The Israel Venture Network (IVN) was proud to hold its first IERI Business Network Convention at the Lavi Hotel on Kibbutz Lavi on July 6th, 2008, two years after the outbreak of the July 2006 Second Lebanon War.

The war highlighted and exacerbated longstanding difficulties facing the economic structure of Northern Israel, in particular small and medium businesses. IERI was developed in response to the difficulties, and complements rather than duplicates, other efforts in the area. IERI's purpose is the establishment and stimulation of business growth in Israel's periphery through a scalable model of consultancy, coaching/mentoring and lending for small businesses, combined with strengthening and empowering regional business consultants and MATI's (Small Business Development Centers).

The convention was regional (Tiberius and Beit She'an) and was in response to and at the request of IERI-involved business owners in the region in an attempt to create a business forum, develop a network and uncover business opportunities.

80 people attended the convention. For the most part the group was comprised of business owners, consultants and regional MATI employees. In addition, consultants were invited to bring business owners, unrelated to IERI. The convention was prefaced with opening remarks by MATI Manager, Nitzan Aviran. Several of the IERI businesses gave presentations, after which Moria deWitt, of Hatzav-deWitt Advertising, gave an impressive speech on the topic of branding. The final talk was given by Amnon Yacoby, IERI mentor and Chairman of Aternity Inc., regarding the value and contribution of consultation and mentoring to businesses.

The feedback has been extremely positive and IVN hopes to hold additional such regional conventions in the future.

Networking Needs

Take Action  - GO GREEN

Green / Clean Energy Company Tips

~Light - allow outside light in as much as possible, it creates a healthier working environment as well as more energy efficient. Good shading outside a window can reduce direct sunlight, but allow the light to enter the room.

~Light bulbs – change to CFL light, don't use halogen lamps (most energetic inefficient)

~Refrigerators, air-conditioners, computers – get the most energy efficient. It costs more at first, but pays back throughout the lifespan of the product.

~Cooling of servers rooms –apply good insulation to reduce energy consumption for cooling

~Central Controls – automatic switches for turning-off air-conditioning and lights can reduce energy consumption significantly – 14-16%  on average.

~Set air conditioners thermostats to no more than 22oC during the winter, and no less than 25oC during the summer.

For more information on how to GO GREEN contact Yael Cohen-Paran, founding director of the Israel Energy Forum, at yael@energia.org.il or visit her website at www.energia.org.il

Holiday Gifting & Corporate Social Responsibility

Fulfilling corporate responsibility should never just be going through the motions.

Give back to society by buying socially responsible gifts this year.

Margalit Moshe's "Women Embroidering Andanet (Together)"

Margalit Moshe's project was established in 2003 with the intention of integrating unemployed Jewish Ethiopian women into the Israeli society and economy. What started as social gathering, "Women Embroidering Andanet" now consists of 23 Ethiopian women living in Be'er Sheva who do their embroidering during the week at home and once a week meet with guides who help them with design, manufacturing, marketing & sales, etc.. The products consist of items such as chala or matza covers, table cloths, mezuzah cases, place mats and much more.

Please view their products at : http://www.zman.beersheva.biz/index.php?m=pr

Linda Mosek's "Retirement - the Window of Opportunity"

In a “youth oriented society” the aged sector finds itself rejected in a social, economic and cultural climate, which has no room for them. Today they live longer, have the desire to remain productive.

To alleviate this situation, Linda Mosek is creating valued occupational opportunities for the elderly by establishing a unique vocational center in Hod Hasharon in the center of Israel, run by the elderly, which serves the general population. In addition to it’s many services, the center provides work-related prospects in the forms of an organic coffee shop, a plant nursery, ceramics studio, handicraft-manufacturing workshops and a retail shop, which sells amongst other things, gift items and gift baskets.

For more information contact:

Dr Linda Mosek, Executive Director

09-7414974 ~ click2@017.co.il ~ www.click-savi.org.il

Yossi Coten and Smadar Nehab's "Tsofen"

The barrier to entry of Arabs into the high-tech industry is cultural, not economic, yet the demand for qualified engineers is huge and thousands of suitable Arab University hard science graduates are available. "Tsofen" provides a unique solution to this market failure through a high-tech retraining center and R&D offices in Nazareth which trains Arab University graduates in the culture and requirements of the high-tech sector, thereby aiding in their job placement.

"Tsofen" is seeking collaboration with High-tech companies in the following:

* Companies requiring high quality R&D services in the way of “inshore centers”.  Tsofen engineers are all university graduates with degrees in exact sciences.

* The Tsofen center is now furnishing its training and R&D facilities. We are looking for good quality PC’s, PC screens, and furniture.

For more information contact:

Ms. Smadar Nehab

~Smadar.nehab@tsofen.org ~ Office: 04-6000500 ~ Cell: 054-4830418.

Crisis - Running Out of Time and Energy - The Israel Energy Forum Fights Back

• World oil will end in 41 years according to currently known reserves.
• Within 15 years, about 85% of those oil reserves will be in the Middle East, which presents a strategic problem for Israel.
• The price of petrol is rising globally.
• Israel is in the middle of an electricity energy crisis. Blackouts will increase over time.

"On the one hand, Israel has almost no natural resources of its own but on the other hand Israel has no clear sustainable energy policy to deal with either climate change nor the global and domestic energy crisis," says Yael Cohen-Paran, founding director of the Israel Energy Forum – a new initiative to achieve and implement sustainable energy policy in Israel.

Yael is one of IVN's 2008-10 Social Entrepreneur (SE) Fellows. Initiated in 2004 in partnership with the New Israel Fund, IVN's SE Fellowship Program supports and incubates entrepreneurial individuals, such as Yael, dedicated to developing and implementing innovative and sustainable social/economic solutions in Israel and beyond and empowering people and communities to create positive, sustained change. However, they often lack the resources and support mechanisms to achieve their goals. The Fellowships enable SEs to dedicate 100% of their time to their projects during the 2-year period of the Fellowship, growing and expanding the projects.

Over the past two years, the global political agenda has dramatically shifted to focus on the issue of global warming and the climate crisis. As the severe environmental, health and economic consequences of the intensive use of fossil fuels are revealed, the urgent need to significantly reduce carbon emissions has become clear. Of no less importance is the question of the imminent peak in world oil production and the ensuing energy crisis. Oil prices have recently increased to an all-times record and are expected to increase even more.

Yet very little is being done in Israel with regard to climate change and the rapidly approaching energy crisis.  In fact, following the blackouts of the summer of 2007, which are expected to significantly increase in 2008, it can be stated that Israel is already in the midst of an energy crisis and its ability to provide it's citizens with steady supply of electricity is now cast in doubt.

"It is hard to underestimate the importance and urgency for Israeli society of the conversion from lavish fossil fuels to a low intensity, alternative energy economy - securing Israel's energy independence is becoming an existential question," says Yael. "Some of the world's most advanced research on solar energy is conducted in Israeli academic institutions, and Israeli companies have become world leaders in renewable energy production, yet almost none of this knowledge is implemented internally."

Although many governmental and non-governmental institutions in Israel deal with different aspects of energy management, these bodies have differing agendas and rarely interact with each other thus no clear policy is in fact set. The lack of a coordinating body to bring these institutions together and set forward a clear, achievable policy is the gap the Forum,  supported by a group of Israel's leading scientists and energy experts, as well executives from the industry, aims to fill.

For more information on how you can get involved, write to Yael at yael@energia.org.il or visit her web site at www.energia.org.il

IVN's Active Citizenship in Tuba Zangariya

IVN believes that only in a democracy can the individual be an active partner in shaping the public space, thereby making full use of his/her talents as well as making a contribution to strengthening the society. Launched in 2004, the Education for Active Citizenship program, a strategic partnership of the Israel Venture Network and the New Israel Fund, was designed to address these issues.  The program is unique in that it provides students in Israeli schools grounding for a rich and life-long engagement with and commitment to the issues of civil society, democracy and community activism
The program was launched in the Bedouin village of Tuba Zangariya, located in the Galilee, in 2006.

Within the framework of the Active Citizenship program and with the cooperation between IVN and the Department of Education at the Nachum Guttman Museum of Art, the museum's team was hosted in the Bedouin village of Tuba Zangryia.  Over a period of 4 days, an arts event for 3rd and 4th graders, themed "Your Environment", took place. The children were exposed to the varied works of the artist and to the values he represented – love of the place and of man. Under the guidance of the museum's team and the inspiration derived from Nachum Guttman's art, the children created paintings, illustrations and sculptures, which examined their identity, both as individuals and as part of something larger. The highlight of the 4 day event was the huge wall drawings on the school walls, the result of joint work between the professional illustrators from the museum team and the students. The wall drawings are based on the event theme "Your Environment" both in the past and future, depicting regional imagery and  as well as images reflecting their Middle Eastern way of life and their personal, social and national yearnings for a better world in the future.

We welcome our members to come and visit our projects onsite. If you are planning a trip to Israel, we would be happy to coordinate a short visit to one of IVN's projects.

For more information, please contact Anat Samet at anats@ivn.org.il