Startup guru Tal Catran on boosting Cyprus’ startup scene and the one factor that will attract Israeli investors

Being able to operate under pressure, making self-belief and self-motivation a key part of your approach, and choosing the right people to work with including mixing generations to benefit from all their strengths are just some of the keys to success suggested by startup guru Tal Catran.

Israel is well-known for its own thriving startup scene and, the country’s recipe for success is something keynote speaker, government, municipality and business consultant Catran is often asked about.

Recently speaking to CBN, Catran revealed what he considers to be some of this recipe’s most important ingredients, pointing out the route Cyprus could follow to strengthen its own expanding startup landscape.

“Israel is one of the countries that is known throughout the world specifically for building such a successful startup scene,” he acknowledged, going on to say, “So, what is the ‘secret sauce’- the secret ingredients that make Israel a success?”

One element, according to the expert, is that businesses in Israel had become used to existing in what he described as “a sense of urgency.” Catran said this condition was regardless of whether or not a war was going on and that it went back to the long-time persecution of the Jewish people.

This also prompts Catran to sometimes begin his keynote addresses and lectures around the world with the phrase, “I have two things going for me. I'm Jewish and Israeli, meaning I'm rich and I’m smart.”

Another element of this secret ingredient, according to the expert, is the way Jewish mothers, as the heads of usually very tight-knit families treat their children.

“I always give this example when I lecture: According to my mother, when I wake in the morning, I am the most beautiful, at noon I am the smartest and, in the evening, I am the most successful. I'm almost 55 years old and I can tell you, it rubs off on you when you hear it all the time. You're always right. You will always make it. You're always pushing forward,” he explained.

Catran elaborated on this contrast between the cultural approach in Israel and most of the rest of the world, noting that, in most other countries, if a young student goes home and tells their parents they have a great idea for a startup, “They will look at him and say ‘startup? What’s this? Is it a job? You’re not going to get paid. Everybody is going to compete with you. You’re probably going to fail.’ In Israel, your mother will say, ‘Why don’t you have a startup yet? Everybody else does. Do I have to tell our neighbour that my son doesn’t have a startup?’”

He also said Israelis were keener on working together than many other nations, “We are like the small birds or fish who come together to scare off the eagle or the shark...this is how we live our lives.” This sense of community creates cooperation and helps build skills, he added.

Catran also referred to the phrase “Tachles” which, refers to the essence, of getting to the bottom line. “It means that when two Israelis speak, ‘yada yada yada, how are you, etc.,’ then we say, ‘Okay, tachles, why are we here? What do you want from me?’” And this direct approach to doing business is something that Catran has often been asked to instruct others around the world on.

Another of his areas of expertise is helping people become and stay high-motivated, including by believing in themselves and freeing themselves from the need for validation from others. This, he believes, is also something that has come to define the way business is done in Israel with this sentiment also be seen in the figures showing that around as many new companies are opening up in Israel as the number that have just failed.

More widely, Catran also believes that cooperation between young entrepreneurs and the older owners of small and medium businesses could also be an important part of the recipe for success, with each side bringing in their special qualities to fill any gaps.

Gen Z, he explained, has a different mindset to older generations and while very capable in many areas, may not be as good at elements of business such as management and finance. Small and medium business owners on the other hand have developed these skills but may not be comfortable embracing technology including protecting themselves from cyber-attacks.

Turning to the theme of technology, something he also regularly speaks to audiences about, Catran said that the best thing to say was often as simple as saying ‘Don’t click’ referring to phishing links and similar tricks hidden in emails and social media and text messages.

“We could also say something similar for cooperation between entrepreneurs and small media businesses ‘Just connect,’” he went on to suggest. Working with people already in the sector, with years of experience in a specific market, would also make it more likely that the idea an entrepreneur is hoping to develop is also something people are actually interested in buying, Catran explained.

Another item on the list of ingredients for success would be to follow up on the knowledge and contacts made at networking events, Catran advised, “and not just wait for the next event.”

A crucial error startups often make, he went on to note, was rushing to accept investment. “One thing you can ask the founder of any startup is why they left their previous, probably more comfortable, job? They say because they didn’t want to have a boss. But, from the moment you take even one euro from someone, you have a boss, and this boss would like to get the money he invested back.” Validating their product before accepting investment will create a higher possibility for success, Catran suggested.

Catran underlined the importance of the human element, the people themselves, but, as an expert on technology, also singled out AI and robotics as the two that stand out the most when it comes to the future of business, suggesting embracing new technologies would increasingly become the only way to survive.

Attracting Israeli investors to Cyprus

The current situation in the region certainly has impacted Israeli businesses but it would take more than tax incentives to bring them to Cyprus, even during more peaceful times, expert Tal Catran suggests.

Suggesting how Cyprus could better attract Israeli investors and companies to Cyprus, Catran noted that given their relative wealth, Israeli investors are not as moved by the tax breaks other investors might be and are far more interested in elements such as the quality and volume of manpower available.

“Even if you invite them, saying ‘You won’t have to pay for anything, we’re sending you a ticket,’ the first question each and every Israeli business will ask is ‘Can you tell me about the manpower you have in Cyprus? Are they skillful? Educated? Where were they educated,’” he said.

Catran noted that Israel has universities that are numbered among the top 50 and even top 30 in the world, so expectations when it comes to staff education were high.

“No company, small, medium or large will move anywhere without securing manpower,” he said.

The next question would be how many people with the required skills are available, Catran continued, “They will ask ‘How many cyber developers, how many pen testers do you have?” hinting that this is something Cyprus should consider if it wants to encourage Israeli companies to invest on the island.

Catran explained that in his expert opinion, Cyprus’ invitations to Israeli businesses and investors should be made on site, in Israel. “Don't shout out from miles away ‘Come on over.’ You need to take us by the hand and bring us over,” he said.