December Edition 2024

8 Masato adds: “A wide range of Japanese companies have invested in Israel. These include trading houses, insurance companies, and manufacturers. Many Japanese firms have established R&D centers in Israel or collaborated with Israeli startups to develop innovative solutions in healthcare, pharmaceuticals, and AI-driven medical devices. Numerous Israeli companies have also successfully entered the Japanese market, focusing on fields such as AI, cybersecurity, and healthcare. Prominent examples include Check Point, which addresses Japan’s growing cybersecurity needs, and Medtronic, which partners with Japanese entities to deliver innovative healthcare technologies. Furthermore, until 2023, Japanese investments in Israel had been robust. Partner Guy Lachmann, who co-heads the High-Tech practice and Japan desk at Pearl Cohen, speaks directly from experience. “In recent years I have been occupied by mostly three types of transactions and projects involving Japanese corporations and their Israeli peers.” “The first involves a direct investment by a Japanese VC, CVC or corporation, into an Israeli technology startup. In some of these deals, the Japanese counterpart assumed lead investor position, however in the majority of deals, such investors prefer to be followers and let a local Israeli or US VC fund lead the transaction. The second type of transaction we have seen are those involving a commercial collaboration between Japanese corporations and Israeli tech companies. These include distribution of products or services, licensing or technology, development of technology and other joint ventures. The third prominent type of projects we deal with involved the formation and support to innovation and R&D centers launched by Japanese corporations in Israel. Other than opening an office in Israel, these companies also very actively engage in scouting for new technology solutions, experimenting with such solutions (by way of conducting POCs and entering into design partnerships), and once a business use case is found, entering into a commercial relationship with their Israeli peers. Another fourth type of transactions we customarily see is the acquisition of companies, however this has been less prominent in recent years.”

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