War is a time of chaos but also of hidden opportunities. As Israel’s streets fill with soldiers, and markets fluctuate between fear and hope, start-ups and companies desperately seek investors who will believe in them.
The big question is: How do you raise money when the cannons roar? And how do you approach international investors when a wave of antisemitism is sweeping the world?
The answers, it turns out, lie in history – from past wars where economies and entrepreneurship not only survived but thrived. What lessons can be learned from previous wars? What fascinating examples can be drawn from the Russia-Ukraine war? And how can we navigate the turbulent waters of 2025?
This is a story of resilience, ingenuity, and a touch of Israeli audacity.
Lesson 1: There is always money – the question is where to find it
Wars do not stop money; they only redirect its flow. During World War I, governments raised billions through war bonds, turning ordinary citizens into investors. In 1917, the US raised $21 billion (equivalent to about $400 billion today) using patriotism as a driving force. What can be learned from this? In times of war, and beyond, emotions drive investments as much as profit.
Today, as Israel fights, start-ups can turn to the local community and the Jewish Diaspora with a message of solidarity. A concrete example is Presto Ventures, which established a $150 million fund for investment in Ukraine, aiming to invest in technologies that strengthen the West. In Israel, crowdfunding campaigns like those that succeeded during the Swords of Iron war in 2023, which raised millions to support local businesses, show that the general public can become investors if the story is compelling enough.
If you manage to sell a story of hope and not just technology, the money will come even when the rockets fly.
Lesson 2: Adaptability is the name of the game
War changes everything – markets, logistics, and even customer needs. During World War II, companies like IBM quickly adapted by developing computing machines for military tasks and became key players in peacetime. In Israel in 2025, start-ups that can pivot 180 degrees, such as developing defense technologies or remote work solutions, will attract investor attention.
Mia Dynamics, an Israeli start-up that originally developed electric scooter-like vehicles, adapted its robotic transportation vehicles for the military market and secured partnerships with the Israeli aerospace industry. Similarly, Israeli start-ups that developed crisis management apps in the last war demonstrate the same principle.
Investors don’t just look for a good idea. They want a team that can dance in the storm. Show them that you can adapt, and they will open their wallets.
Lesson 3: Transparency builds trust
In times of war, uncertainty is an investor’s greatest enemy. Companies that provided real-time updates on their situation, even when the news was bad, maintained investor confidence. Today, when every Zoom call with an international investor might be interrupted by a rocket alert, transparency is a winning card.
A clear example comes from Ukraine, where SPIN, which raised $18 million, continued to update its investors on progress even under bombardment. In Israel, start-ups that shared weekly reports on how the war affected them, such as power outages or employee drafts, received positive responses. One investor from California said, “I’d rather invest in a company that admits it’s struggling than one that pretends everything is perfect.”
Be honest, and investors will see you as partners, not risks.
Lesson 4: Seek investors who understand war
Not every investor is suitable for wartime. In recent years, US companies that approached funds with experience in the defense industry raised capital more quickly, and investment volumes doubled in the last five years. In 2025, as Israel remains at war, it is wise to seek investors who have previously invested in conflict zones, such as US funds that supported Ukrainian start-ups.
In late 2023, Forbes published an article titled “Funds Are Fueling the Boom in Defense Startups,” aiming to build the Lockheed Martin of the 21st century. In Israel, funds like Bessemer and Sequoia, which have invested in defense companies, are key targets. One Israeli entrepreneur said, “They didn’t ask about the risks. They asked how we were overcoming them”.
Find those who see beyond the smoke, and they will provide the funds that risk-averse investors miss.
Lesson 5: Contribute to the national effort and stand out
Wars create urgent needs, and those who provide solutions gain the spotlight. During World War II, companies like Ford converted factories to produce tanks, winning government and private investor support. In Israel today, start-ups that support the war effort, whether through military technology or civilian aid, attract attention.
During the Swords of Iron war, Israeli company Xtend, which developed a drone control system, raised $40 million in 2024 after proving its value in Gaza, leading to a significant increase in valuation. Even small Israeli start-ups that developed alert apps or civilian support solutions reported increased investor interest.
Provide value to the country, and investors will see you as more than just a business. They will see a mission.
Lesson 6: Diversify income sources
War brings economic uncertainty, so relying on a single investor is risky. US companies that secured funding from diverse sources – government, funds, and citizens – survived better. Israeli start-ups today can seek government grants, crowdfunding, and international funds.
For example, Google established a support fund for Ukraine in 2022, providing grants of up to $100,000 to start-ups. In Israel, government programs like the Israel Innovation Authority increased support in 2024, and start-ups that combined grants with private investments reported greater stability. A Tel Aviv entrepreneur said, “I took half the money from the government and half from a fund. That way, I didn’t collapse when an investor backed out.”
Spread the risks, and war won’t bring you down.
Rising antisemitism: How to engage international investors
Israel’s war does not occur in a vacuum. A global wave of antisemitism, which intensified after the Swords of Iron war, complicates raising international funds. Incidents like vandalized kosher shops in London, anti-Israel protests on American campuses, and calls to boycott Israeli companies in Europe create a hostile atmosphere. A 2024 report by the World Zionist Organization showed a 340% rise in antisemitic incidents worldwide since 2022, and an ADL report found that nearly half of adults globally have antisemitic views.
To navigate this, focus on friendly markets by targeting investors who have already invested in Israel and emphasizing transparency to alleviate concerns. Highlight universal value in Europe, where antisemitism is strong, by framing the technology as a global solution. Build personal connections by using local partners, such as law firms representing the company, to bypass biases.
When the world fears Israel, give them a reason to embrace you face to face.
What not to do
- Don’t ignore the war. Investors expect full transparency.
- Don’t overpromise. Unreasonably optimistic growth projections will diminish trust.
- Don’t neglect risks. Without a clear plan for supply chain disruptions or security, you’ll look unprepared.
- Don’t forget people. Keep investors and partners engaged, ensuring mutual stability.
- Don’t drastically lower valuations. Avoid undervaluing the company. If needed, raise funds via SAFE agreements.
Final thought: The money waits for the brave
Despite challenges such as mobilized employees and operational disruptions, Israeli start-ups have continued to thrive, proving that Israeli innovation is unstoppable. Tell a compelling story, adapt, be transparent, and target the right investors. Against antisemitism, focus on allies, showcase universal value, and engage in real-world meetings.
Because even in hard times, those who find a way will keep telling their story.■
The writer is founder and CEO at DUSMIT Ltd., chairman of the board at C Plus, and owner of The Alternative Board (TAB) Israel.
