Exploring strategic venture capital financing with Silicon Valley style

The study explores Israel's Silicon Valley style of entrepreneurial financing and venture capital (VC) management. Israel is known as the most successful Silicon Valley-style economy, similar to the US Silicon Valley. The high-tech economy of Israel presents an interesting case of effective institutional setting and policies that transform the country into the innovation nation. The analyses were carried out based on the competitive Diamond model. The results have shown that the thriving Israeli high-tech clusters are the result of Triple Helix interactions and government-led policies in creating VC industry with the financial support of Yozma program as well as foreign funding. Importantly, the government financing did not crowd out but crowd in private investments. The paper provides lessons on Silicon Valley-style management and the proactive role of Israeli government in promoting high-tech clusters which would be useful for other countries to learn from the Israeli experience.