Israeli Crowdfunding: A Reflection of Its Entrepreneurial Culture

Abstract

Crowdfunding has its roots deep in the Israeli entrepreneurship ecosystem. Its characterizing elements of-collective individualism combined with flat social hierarchies, low degree of separation, mandatory army service that enforces innovative thinking and improvisation, Chutzpah, and finally high tolerance for failure, all provide fertile ground for entrepreneurship and facilitate innovative approaches to entrepreneurship funding such as crowdfunding. In light of this, the growth of crowdfunding in Israel is not surprising. While the equity crowdfunding leads the field, rewards and donations platforms are more known and popular, indeed the brand name of the senior rewards and donations platform ‘Headstart’ became a nickname for crowdfunding action in Israel. In this chapter we illustrate the foundations of crowdfunding in Israel, its current state, and likely future development.