Author: Ido

Against the backdrop of recent heatwaves in Europe, which have made the climate crisis tangible, Ido Sabag, founder of a consulting firm for startups, wonders why investments in green-tech startups aren’t growing significantly, and highlights the green startups he believes are poised for major success.

In recent weeks, it’s been impossible to ignore the heatwaves in Europe. Roads melting in England, rains in Germany, and many other phenomena that can’t be explained without acknowledging the climate changes we are experiencing. On the surface, investing in green startups—those that help all of us transition to green technology or at least reduce the damage we’re causing—sounds promising, but that is far from the reality.

And yet, only recently did the Israeli government, after nearly a year of work by various government ministries, decide to formulate a plan to promote climate technologies. The plan was budgeted at close to 3 billion shekels, most of which will come from existing budgets of the involved ministries, with an additional supplement of several hundred million shekels.

In contrast, a report by Viola Ventures examined the distribution of venture capital investments in the first half of 2022. This kind of data shows us what investors are looking for and where they’re putting their money. According to the report, the cyber sector accounted for 24% of venture capital investments and continued to be the leading investment sector—even though it too suffered from an absolute decline in investment. Relatively speaking, the percentage of investments in cyber increased: 18% in 2020, 20% in 2021, and 24% in 2022. Meanwhile, the fintech sector, which was the second leading investment area in H1 2021, dropped to third place with 10% of investments in January–June 2022. Second place was taken by the IT/DevOps sector with about 13% of investments, and it was also the only one to grow in absolute fundraising volume. The retail sector, which constituted 9% of investments in 2021, disappeared from the top five, as did biotech and medical devices, which accounted for 8% and 9% respectively. The health sector remained at 7% investment volume; in 2021 that placed it fifth, but in 2022 it rose to fourth. So, where is green-tech? Are investors not feeling the heat?

And what’s happening globally? The research firm CB Insights, which conducts research on startups, fundraising, and more, predicts a roughly 20% drop in total venture capital investment from Q1 to Q2 across all sectors—including green energy. According to them, the funding decline mainly impacts entrepreneurs trying to bring innovation in climate sectors. They claim that green companies are finding it increasingly difficult to raise money for large-scale innovative projects, mainly because most investors still associate “impact startups”—those that require significant capital to lift off—with high risk. Therefore, they recommend green startups sharpen their strategies for raising venture capital, whether by approaching dedicated funds or general VC firms. Funders of such startups tend to support companies that have already demonstrated a realistic ability to scale, aligning with the level of investment.

There are quite a few green startups around the world that are very interesting and, in my opinion, will make a significant breakthrough soon. They work well, are managed properly, and enjoy the trust and backing of investors.

For example, Biome Makers, which deals with restoring soil health. The startup, founded in 2015 by Alberto Acedo and Adrian Ferrero in Silicon Valley, works to improve global soil health so that farmers can enhance their cultivation methods and land use worldwide. The startup implements artificial intelligence technology supported by the founders’ expertise in agronomy to create a “virtual assistant” capable of helping farmers increase soil yield and crop quality.

Another interesting startup is Aurora Solar. As demand for alternative energy sources grows, solar energy companies are gaining more prominence. The startup provides solar energy companies with software to design and sell solar panel systems to customers remotely. Aurora Solar raised $50 million in its Series B funding round, and with the U.S. government planning to invest nearly $2 trillion in the industry, this will certainly help the company and the sector expand.

Another startup with a different, more educational concept comes from Germany—Viva Maris GmbH. This startup is committed to protecting oceans through our diets, education, and raising awareness of human impact on the ocean. To that end, it creates food products using a marine ingredient—seaweed. Beyond their tasty seaweed-based products, the startup also prioritizes protecting ocean biodiversity, providing employment for former fishermen, and helping to preserve natural seaweed habitats.

In conclusion, not everything is bleak. The future is likely to be greener. In 2021, 64 new climate funds were launched with a total of $38 billion in investment capital. Two-thirds of the new funds were in the range of $5 to $50 million. Thirty out of the 37 billion dollars raised were concentrated in 15 mega-funds.
Additionally, more than 600 individual investments totaling about $40 billion occurred in green-impact startups in 2021, according to the Climate Tech VC newsletter.

It might sound like a lot, but it’s a drop in the ocean—U.S. startups raised $329.9 billion in venture capital in 2021, nearly double the previous annual record of $166.6 billion set in 2020. The total number of venture capital deals also increased significantly to 17,054 in 2021, compared to 12,173 in 2020.

Ido Sabag, WeCcelerate | Photo: Yonatan Bora

Investors hold significant power—they flock to certain sectors and pour capital into them. Even if the current figures are lower than before, there are still sectors where raising money is easier than in others. The green energy sector isn’t one of them. Investments are going elsewhere—towards fields that promise returns. That’s legitimate, but also a warning sign for startups in the field: they must be both revolutionary and offer a product or service that can ultimately be understood and sold. The world now needs new startups that offer significant solutions to change the situation—and visionary investors who understand that their investments benefit all of us, not just the bottom line. The challenge for everyone will be to succeed.

The author is one of the co-founders of the startup consulting firm WeCcelerate.

The Young Israelis Investing in Bitcoin at Age 18
The hottest sector in the tech world may be taking losses these days, but it continues to fascinate the world. Many young Israelis, sometimes only 18 years old, are investing the small amounts of money they managed to save from odd jobs or gifts from family in blockchain technology, and they’re not fazed by the market downturns:
“Crypto is something that can develop and gain value, like stocks or art.”

Besides your brother, what does your environment think about crypto investments?
“My surroundings think that investing is good, but like any other investment, you need to be aware of the risks, even though it’s an interesting field with a lot of potential. I’m not worried about the current market drop because there have been many drops before—and also many rises. Crypto is something that can develop and gain value, like stocks or art. I also still have a lot to learn.”

“We’re seeing a growing trend of young people, even teenagers, holding crypto coins. The main reason for this is social networks and the many online games that require various kinds of coins to advance in the game,” explains Avraham Hinoch, head of the NFT Division at the consulting firm WeCcelerate, who is a recognized expert in the field.
“There’s also an ideology behind it. Generation Z strongly believes in decentralization and in having control over themselves, their content, and their actions. There is a strong statement here against the various large corporations. I believe this will continue to grow as more and more young people enter this world, and at the same time, the entry barrier will become even lower. Right now, any brand that isn’t thinking about how to integrate into these realms will simply miss out on this generation in a few years.”

The tech fields that are immune even from a global crisis

“At the end of the day we should remember that for investors the best time to invest is now. Entrepreneurs are begging for money, multipliers have gone down and it’s time to go in and invest,” writes Alon Pinhas So many articles, all over the world, have been written about the situation of the high-tech sector. It is more difficult these days to raise money, we are seeing more and more layoffs in various companies and the general atmosphere is not good. And yet, history teaches us that there are areas where investments don’t stop, even if they are lower. Now, a new report by the Viola Group examined the divisions of venture capital investment areas in Israel in the first half of 2022. The data from the research teach us what investors are looking for and where they are investing. The report shows that the cyber industry accounted for 24% of venture capital investments and continued to be the leading investment area even though it was also hit by the absolute decline in investments. Relatively speaking, the percentage of investments in cyber has only increased. 18% of investments in 2020 were in cyber, 20% in 2021 and as mentioned, 24% in 2022. Alon Pinhas. (Yonatan Bore) The fintech sector, which was the second investment target in the first half of 2021, dropped to third place with 10% of investments in January-June this year. The second place was taken by the IT / DevOps field with about 13% of the investments and it is also the only one that has grown absolutely in the volume of investments. The retail sector, which accounted for 9% of investments in 2021, has disappeared from the top five places, as well as biotech and medical equipment, which accounted for 8% and 9%, respectively. The health sector remains with the same volume of investment of 7% only in 2021 it was fifth place, while in 2022 it moved up to fourth place.

The Young Entrepreneurs Behind Weccelerate: From Be’er Sheva to Startup Success

Since they first met as kids in Neighborhood D of Be’er Sheva, Alon Pinchas and Ido Sabag knew they were entrepreneurs at heart. So it’s no surprise that in their adult lives they joined forces to launch Weccelerate, a company specializing in accelerating startups, working side by side to equip entrepreneurs with the tools to turn their ideas into successful ventures.

Dozens of Israeli entrepreneurs try each year to develop an idea into a successful startup, but often, achieving this requires a guiding and professional hand. This is the idea that sparked the journey of Alon and Ido, two childhood friends from Be’er Sheva, who in 2017, together with their third partner Avraham, founded Weccelerate, a company focused on supporting startups.

“As teens, we had a hip-hop band in the city. We performed on Independence Day stages, in parades, and at the Youth Center… but what really interested us was managing the group—working with dancers, the financial side. Even back then, as high schoolers in Be’er Sheva, we saw ourselves as entrepreneurs,” Alon told Be’er Sheva Net.

Their friendship began in childhood and strengthened through shared schooling. During military service, Ido met Odiya, who later became his wife—and she, in turn, introduced Alon to his future wife, Merav. “During the army, Alon served in the Paratroopers and I was in Field Intelligence. We’d meet occasionally on weekends. When I met Odiya, I knew I had to introduce Alon to someone perfect for him—and that’s how he met Merav. They even got married before us,” Ido recounted.

Childhood Friends from Be’er Sheva – Alon Pinchas and Ido Sabag

Later, they pursued academic degrees and gradually gained experience in their respective fields. Alon Pinchas, CEO of the company, holds a degree in Economics and Accounting and previously served as the financial controller of Intel’s Kiryat Gat plant. He brings strong experience in company valuation for investment and acquisition and has strategic investor relationships locally and globally.

Ido Sabag, Weccelerate’s CTO, holds a degree in Mechanical Engineering and a research-based Master’s in Green Engineering. Before joining Weccelerate, he developed an innovative startup in renewable energy and worked as an engineer in a plastics plant handling diverse projects, all of which now contribute to his ability to connect with entrepreneurs and support their startup success.

Joining them is Avraham Hinuch, the company’s marketing expert. An engineering graduate with deep expertise in both traditional and digital marketing, Avraham has a proven track record in growing businesses.

Together, they built Weccelerate—an accelerator that until recently worked primarily with Pre-Seed and Seed startups, and now also supports Round A ventures.

“Today’s teens have more tools than ever to enter the world of entrepreneurship early on. That’s a huge gift to Be’er Sheva—something we lacked in high school.”

So what led you to start a company together?

Alon: “Avraham was my neighbor, and together we decided to launch Weccelerate. He had already worked with many businesses in marketing, and our friends started coming to us for startup advice. The name Weccelerate comes from ‘we accelerate’—we take ideas and help entrepreneurs fast-track them. A few weeks in, we realized that although we had marketing and finance experience, we needed a strong tech arm. I knew Ido was the perfect fit—my childhood friend, a professional, and exactly the kind of person we needed. I always say: Ido met his first wife, and I introduced him to his second.”

Ido: “We scheduled a meeting at my house in Be’er Sheva. My wife was nine months pregnant with our second child. She barely had time to bring us refreshments when her water broke—we rushed to the hospital, and she gave birth that evening. That’s when I knew something big was beginning—on both fronts.”

Did you realize your knowledge could help other startups grow? Can you share an example?

Alon: “Definitely. Many business consultants are out there, but entrepreneurs noticed we came from the industry—we understand the market and how to help them scale. That brought a surge of inquiries. We worked in partnership for two years, and since 2019, we’ve operated as a limited company based in Tel Aviv. One example: a founder in Israel wanted to solve ambulance delays caused by traffic. We researched and discovered a U.S. company—Haas Alert—that already had a solution. We brought that company to Israel, appointed a CEO, signed an exclusive import deal, and are now running a pilot with one of the country’s largest emergency organizations. This shows how building the right path is crucial. If that founder had gone ahead unaware of competition, he likely would’ve failed.”

At what stage do you support entrepreneurs? Early idea or later on?

Ido: “We see two types of founders. Some arrive deeply attached to an idea, maybe even obsessed, and don’t always see the right path. Our job is to show them what the market demands or what adjustments are needed to differentiate. Others come early, and after market analysis, we sometimes find the market is too small or crowded—a red ocean. In such cases, raising funds or standing out would be very difficult. Every entrepreneur gets a tailored path.”

Alon: “We support the entire spectrum—from someone with an idea just yesterday to a founder ready for IPO or global expansion. But most who approach us are early-stage. Our strength is in concept development, prototyping, and market validation. Too often, people spend lots of money before validating. Like you hire a lawyer for contracts or a PR person for publicity—you need a firm like ours to check feasibility. It’s a relatively new concept, but entrepreneurs need to get it.”

“Even if the startup fails, the friendship is more important than anything. The company comes second.”

Alon Pinchas, CEO of Weccelerate

Bringing Entrepreneurship to the Negev

Though they now lead a successful company, Alon and Ido admit they weren’t exposed to the tech world at a young age—and they’re working to change that for the next generation in the south.

Alon: “As Be’er Sheva natives, we’re proud of our roots and want the city connected to innovation. But there’s still a big gap between the center and periphery. We’re doing what we can to change that.”

Ido: “During my studies, I led the ‘Young Entrepreneurs’ program at Amal 1 high school. We guided 10th graders through everything from idea testing to creating a product concept. I wanted to show them the path we lacked. Today the country is slowly investing more in youth innovation.”

Why is exposing youth to this world so important to you?

Ido: “Back then, there were no cyber programs or high-tech parks. Today, teens who are exposed early can found startups after the army—some even making an exit at a young age. We lacked that. When I mentored youth, I saw they now have tools we never had. It’s a huge gift to the city.”

Have you supported entrepreneurs from the south?

Alon: “Absolutely. One example is the startup StreetPro, which recently announced Miguel Vitor—captain of Hapoel Be’er Sheva—as a partner. The startup helps athletes from underprivileged backgrounds by collecting performance data and presenting it to recruiters. It’s a perfect example of a local venture that benefits the southern region.”

Ido: “They came to us during the planning stage. We built the strategy, helped recruit partners, and shaped the framework. In football, some succeed because of money or connections—StreetPro creates opportunities for talented players who lack both.”

Why not have your headquarters in Be’er Sheva?

Alon: “We thought about it. We do have offices in the south to support local founders. But most of the startup ecosystem is in the center. The south still needs to mature in this field. We’re working behind the scenes to help—projects are coming. We constantly do talks, events, and leverage our networks to uplift the southern ecosystem.”

Ido: “We also mentor at TECH7, the southern entrepreneurship community, and help southern startups scale to the center.”

“People need to understand—startup success depends on building the right path. If a founder moves ahead without knowing there’s already an identical company out there, they likely won’t succeed.”

Ido Sabag, CTO of Weccelerate

A Winning Combination

Alongside business success, Alon and Ido remain close friends—their families even spend weekends together. Ido, 30, lives in Be’er Sheva, and Alon, 31, lives in Lachish. Both are fathers of three.

Alon: “We do Shabbat dinners together. Merav and Odiya are best friends—they used to live in the same community. So when we visit her parents, we always meet up.”

Did you worry about mixing friendship and business?

Ido: “With Alon, it’s natural. We’ve always worked well together. In high school, we didn’t think about making millions—we just connected as entrepreneurs. We empower each other, and together with Avraham, our third partner, we form a strong team. In general, people should think twice about mixing business and friendship—but if it’s natural, it’s worth it.”

Alon: “To me, it’s about what you value more—the company or the relationship. Our third partner always says he only does business with friends and family—the opposite of popular advice. I agree. Even if the startup collapses, the friendship matters more than anything. The company comes second.”

What would you like to tell Be’er Sheva residents?

Alon: “We still live in the south and are committed to the city. If this article helps local startups grow—that’s what matters most.”

Ido: “To the young entrepreneur in Be’er Sheva who can’t sleep because they’re dreaming of their startup—remember that living far from Tel Aviv doesn’t mean you can’t move forward. I hope we inspire you. If you have an idea, we’ll help you. Success depends on people. If you believe in your idea, others will too. Nothing can stop your determination—and we’re here to help.”

 

Yaakov Koller Appointed Head of the Consulting Department at the WeCcelerate Accelerator

As part of his role, he will manage the entire development of business materials for the various ventures managed within the accelerator, along with leading the strategic thinking process for advancing and developing entrepreneurs and supporting the ventures after the establishment stage.

Koller holds a bachelor’s degree in Business Administration and has extensive education in the financial world and capital markets. He has significant experience in consulting and supporting companies and startups. In recent years, he has been heavily involved in the world of entrepreneurship, leading ventures in various fields through different frameworks, including accelerators such as Merage Future 45 in collaboration with Facebook and the AtoBe acceleration program.

Avraham Hinoch, VP of Marketing and Strategy at WeCcelerate, on the Connection Between the Global Recession and the Crypto Market Crash — and How Investors Can Be Protected in a Volatile Market Trying to Avoid Institutional Regulation. Watch the TV Interview

“The market already took a hit six months ago. It started with the collapse of the NFT world, which was based on the Ethereum currency, and continued with the war between Russia and Ukraine. And now we’ve reached the third drop — the global recession. It’s important to understand: this is a very new and immature market, and there were many scams and fraudsters trading in it, simply because this market lacks regulation,” says Avraham Hinuch, VP of Marketing and Strategy and Head of the WEB3 Division at WeCcelerate.

— At the end of the day, we’re talking about something in which we put money, information, and technology. There needs to be an agreement that protects this field.

“It really is that kind of market. The financial services sector in the digital world — crypto currencies — emerged after the 2008 crisis. People lost trust in the establishment’s ability to manage money properly and wanted self-control. That’s how a community arose, saying: we want to control our own investments and our financial portfolios. So naturally, it went against regulation.
But there still needs to be some kind of entity that balances the market to prevent the entry of scammers and the artificial inflation of coins, which has happened quite a lot in the past two years. In the stock market, we have the Securities Authority, which can prevent stock manipulation by companies. But in the crypto market today — you have no such safeguard.”

“There must be some form of community agreement to block these scammers from entering the market. There’s no doubt the market must go through this. In the end, it’s an innovative technology — just like the early days of the internet in the 2000s when there was a lot of phishing and fraud. The same is happening in this world — it’s a new and very important technology for the market. But we must still prevent those scams and deceptions from entering.
That’s the main conflict: how do we block bad actors without subjecting the market to the standard regulations that exist in the financial world today.”

Watch the TV Interview