The Leumi Group's Deputy CEO and LeumiTech Chairman, Prof. Daniel Tsiddon, LeumiTech CEO, Ms. Yifat Oron and CEO of Bank Leumi USA, Mr. Avner Mendelson, Bank Leumi announced the launch of LeumiTech, a suite of financial products and services tailored to the needs of high-tech companies in the United States. Ms. Oron announced the launch at the Israel Dealmakers Summit in New York.
LeumiTech offerings will be focused on New York, which comprises a growing volume of the high-tech industry in the US as well as Silicon Valley. LeumiTech, through Bank Leumi USA, will offer financial products and services to Israeli high-tech companies operating in the US or those with an Israeli connection.
Yifat Oron said that the main goal of LeumiTech services in the US is to position the Leumi Group as the financial home for the Israeli high-tech industry, both in Israel and the United States. "In a very short period of time, LeumiTech products and services have become the gold standard for growing tech companies. We are deeply rooted in the industry and understand the close relationship and cross-fertilization between Israeli and US high-tech. We believe that by offering a range of financing solutions suited to high-tech Israeli companies operating in the US and providing them with all the services and products they need, we will help them reach their business goals," said Oron.
LeumiTech services will support Israeli high-tech companies operating in the US from the growth stage onwards and provide them with personalized service in both English and Hebrew. LeumiTech also provides Israeli companies with a strong connection to the technology ecosystem in major high-tech areas in the US and serves as a one-stop-shop for their daily financial operations, money transfers to Israel, currency conversions, hedging, cash management products and liquidity management. LeumiTech is tailored specifically to high-tech companies, providing high-tech firms with a comprehensive package of services, including credit, financing, investments, partnerships, unique products and services and an international platform. Since inaugurating LeumiTech in Israel more than a year ago, the company's unique positioning has enabled Leumi to fund dozens of financing transactions in the industry that combine financing for high-tech companies whose center of activity is in the United States, provide a series of specialized products and services for high-tech companies and create many strategic partnerships. Company results in recent years indicate a double-digit increase in the financial activity of the Leumi Group within the high-tech industry.
Relative to Israel, the US high-tech industry is characterized by companies that are relatively mature. Over 60% of the companies are in commercial stages, a rate twice that of Israel. About half of US high-tech companies are backed by venture capital funds compared with only 20% in Israel. Companies operating in Silicon Valley are usually backed by more significant investments while Israeli companies in the Valley focus primarily on Internet and software (IoT), mobile, cyber and communications technologies. In recent years, the technology ecosystem in New York has grown at twice the rate of Silicon Valley. The main areas in which companies with an Israeli background in New York specialize are media and advertising, cyber, mobile, fintech and e-commerce technologies. In the past, Israeli start-ups came to the United States at a relatively early stage, a trend which is stronger in New York than Silicon Valley. More than 1,000 Israeli-oriented start-ups are active today in the US, with half of them located in New York and Silicon Valley, the main operating areas for LeumiTech.
At the launch, Yifat Oron also announced that Mr. Eitan Sapir, Head of International & Technology Banking for Bank Leumi USA will spearhead this effort in the U.S. Mr. Sapir is a graduate of the Advanced Management Program at Harvard Business School, holds an MA in Law from Bar-Ilan University, an MBA from Tel-Aviv University and a BA in Economics and Philosophy from the Hebrew University of Jerusalem. Mr. Sapir has in-depth experience in banking and high-tech and previously managed the Silicon Valley Office of Bank Leumi USA, which is focused on hi-tech.
In the upcoming months, LeumiTech is also expected to launch its products and services in London, which is considered the largest high-tech center in Europe and one of the largest in the world.