Elnet-Germany, a nonprofit aimed at strengthening German-Israeli ties, said it launched the German Israeli Network of Startups and Mittelstand (GINSUM) with a grant of more than NIS 2.7 million from the German Federal Ministry for Economic Affairs and Energy. This is the first time that the German government, on the basis of an official decision by the Bundestag, will invest in the Israeli start-up ecosystem, aiming to address the gap in digitalization of Germany’s small and medium-sized companies.
Start-up Nation Central, a non-profit building bridges to Israeli innovation, is the senior partner in Israel of the two-year project.
"In the context of digitalization and related areas such as Digital Health, Cyber Security, GreenTech or Safe and Smart City, Israel is excellently positioned and offers highly qualified talents as well as innovative products and solutions," the organization said. "On the other hand, the German “Mittelstand” (a term for small and medium-sized enterprises in German-speaking countries) includes thousands of hidden champions, European and international market leaders in their respective fields, mostly family-owned and in excellent financial shape."
The organization said it hopes to bridge three central obstacles to successful cooperation between Israeli startups and the German Mittelstand: a lack of market access, a lack of transparency with regard to relevant market players and a lack of internal resources to find the right partner.
GINSUM will organize various exchange formats such as roadshows, pitch events and workshops to support the establishment of Israeli startups in Germany in addition to cooperation between Israeli startups, medium-sized companies and municipal actors.
“With the Israeli startup scene and German medium-sized companies, GINSUM will bring the best of two worlds together, said Carsten Ovens, ELNET's Executive Director and initiator of GINSUM. "Over 6,000 innovative Israeli startups offer extensive opportunities, especially in the context of GreenTech and Safe and Smart City. Both countries can benefit from closer cooperation and strengthen their economic systems."