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Boston startups with ties to Israel are hurting – The Boston Globe


The call-up included Yuval Gonczarowski, chief executive of Akooda, a Cambridge-based software startup with offices here and in Israel.

“It’s heartbreaking — it’s devastating,” he said Tuesday in a call from Israel. Members of the families of Akooda employees have been killed and one has been kidnapped in the attacks, Gonczarowski said. Teams in the US and Eastern Europe have kept the business running, he added.

The outbreak of war comes after decades of growth in Israel’s tech sector and a subsequent flow of entrepreneurs to the Boston area. More than 200 businesses in Massachusetts with almost 9,000 employees had ties to Israel, according to a 2015 study by the New England-Israel Business Council.

The conflict erupted on Saturday, the final day of the Jewish holiday of Sukkot, when Hamas forces from Gaza fired thousands of missiles into Israel and invaded border towns and military bases, killing civilians and taking hostages. More than 900 people have died in Israel and over 800 in Gaza, amid Israeli counter-strikes.

At Transmit Security, about 15 percent of the company’s Israeli workforce has been called up for reserve duty, chief executive and cofounder Mickey Boodaei, who has two daughters in active military service, said. “Everyone at Transmit Security knows someone who’s been murdered or kidnapped,” he said. “Many of our employees are volunteering to help the families of people who were murdered or left without a home.”

Most Israel-connected startups in the Boston area have been affected similarly, Roee Nahir, cofounder and CEO of Assured Allies with offices in Boston and Tel Aviv, said. “It is always good to raise awareness about how interconnected we all are as a global community even if, sadly, that is rarely a deterrent to war,” he said.

Akamai Technologies, whose Israeli cofounder Danny Lewin was killed on 9/11, gained a larger presence in Israel with its 2021 acquisition of Guardicore. The Tel Aviv-based company that specializes in fighting ransomware had 300 employees at the time of the acquisition.

“Akamai’s top priority is the safety and well-being of our employees in Tel Aviv,” the company said in a statement. “Company leadership is in close contact with our site leader in Israel and is ensuring the Akamai team has the support needed to endure this challenging situation.”

Snyk, a Boston cybersecurity firm cofounded by Israeli cyberdefense force veteran Guy Podjarny, has offices in Tel Aviv. “At this time, the well being of our Israeli employees is our primary concern, and our thoughts are with them and their families,” chief executive Peter McKay said in an email. “Currently, we’ve kept our office in Tel Aviv open in order for local Snykers to use our resources to remain safe in the days ahead.”

MassChallenge, the nonprofit startup accelerator based in Boston, has had an office in Jerusalem since 2016 and completed its most recent early stage program there in July.

All of the staff and program entrepreneurs at MassChallenge in Israel are safe and accounted for, Cait Brumme, chief executive in Boston, said. A program focused on helping novice Arab entrepreneurs get started has shifted to a fully virtual basis, she said. The impact of the war on Boston’s startup ecosystem reflects the close ties between the two regions.

“There are amazing connections between Boston and Israel and specifically for the startup tech community,” Brumme said.

Cambridge venture capital firm General Catalyst, which has investments in more than a dozen Israeli startups, said it would donate $250,000 to humanitarian efforts. “We have also been in contact with our portfolio companies and partners who are based in Israel and are committed to doing everything possible to support and assist them at this critical time,” the firm said in a statement.


Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him @ampressman.





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