the high cost of success in Israel’s high-tech sector

Israel’s high-tech sector has experienced rapid growth and astronomical exits. However, this success comes at a significant personal and psychological cost for founders. Gali Bloch-Liran, an Israeli executive coach, has become an authoritative voice on this subject.

She notes that life in Israel’s “Startup Nation” demands extraordinary resources and total commitment, often leading to severe physical and mental consequences. Alon Huri, co-founder of Next Insurance, shared his experience of suffering a heart attack due to unrelenting stress and neglect of personal health. Jonathan Matus, CEO of Fairmatic, described a paralyzing collapse at a conference, illustrating the immense pressure startup founders face.

“Everything glitters in this world, but only on the surface,” Bloch-Liran observes. She recounts mentoring a young entrepreneur who admitted to not sleeping, eating, or exercising, believing it was necessary for success. However, such a lifestyle is unsustainable and often results in burnout or severe health issues.

Many founders also face divorce, social isolation, and mental breakdowns.

The human cost of startup success

Shaul Olmert of Playbuzz spoke openly about the loneliness and personal sacrifices that accompany entrepreneurial success.

Entrepreneurs can struggle with identity crises post-exit, dealing with dramatic shifts in relationships and self-worth. Bloch-Liran’s journey into this specialist coaching role began after diverse professional experiences, including strategic roles in Israel’s Finance Ministry and working at SOSA, a startup innovation hub. Her insights have led her to create an executive coaching firm, “The Human Founder,” and a podcast where she interviews key figures in Israel’s startup scene.

Her work highlights the Israeli military-driven culture, which fosters a strong sense of ego and a reluctance to discuss emotions. However, there are signs this could change, with increased recognition of the importance of empathy and soft skills in leadership. Though some founders doubt the effectiveness of advice from someone who hasn’t founded a startup themselves, Bloch-Liran argues that experience and knowledge provide substantial value.

Her services are in high demand, especially from startups transitioning from small teams to global companies. Monday.com co-founders, Eran Zinman and Roy Mann, faced the challenge of scaling up their business while also having to grow personally. In the high stakes world of Israeli high-tech, it’s not just about making the next big exit. As Bloch-Liran stresses, it’s also about acknowledging and addressing the heavy price founders pay on their quest for success.

By focusing on the human element and emotional wellbeing of entrepreneurs, there is hope that the culture within Israel’s high-tech sector can evolve to be less about relentless drive and more about sustainable, healthy growth.

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