search
Jonathan Simmons
Hope over hate. Supporting Israeli Innovation.

How to Invest in Israel for less than $10,000

Credit Shai Paul - Tel Aviv - Invest in Israel
Tel Aviv Sky Line - Invest in Israel

The article aims to help Israel supporters around the world, those who persevere in their Israel-supporting activity, not only for the nations right to defend itself, but to prosper, and continue to bless the nations through scientific, technological and all-around business innovations.

This article follows on from the Investing in Israel series, which aims to equip and inform, without providing investment guidance, on how we can support Israel with more than our mouths, but with trade and financial investment with Israel’s financial asset classes, and Israeli founded businesses and now publically listed companies.

Credit Jason Briscoe

The article contains a lot of areas covered in the previous article, How to Invest in Israel for less than $1000 catering for those with a bit more of a budget.

In the area of taking active financial steps to bless Israel, one obvious question prevails. Why should investing in Israel only be for the privileged wealthy, and for large multinational companies with millions, and sometimes billions of dollars of budget?

We aim to democratise and simplify investment into and trade with Israel. Jerusalem wasn’t built in a day, but the aim of this article series to shine a torch on the process for Non-Israel citizens who want to step up.

Credit: Towfiqu Barbhuiya –

Is Israel still a Startup investment hub during a war?

Israel, often credited for being the “start-up nation” has progressed now to the “scale up nation” and continues to establish itself as a beacon of innovation and technological advancements. Before the invasion by the terrorist organisation Hamas, and before the now mainstream media onslaught against Israel’s self-imposed war in Gaza, Israel has been characterized by a robust tech sector, a thriving startup ecosystem, and a strong track record of research and development.

A recent report by the Fusion Fund sheds light on the state of pre-seed investments in Israel’s startup ecosystem. The report, covering investments in the pre-seed stage throughout 2023 and early 2024, reveals a significant downturn in pre-seed funding activity during the last quarter of 2023. According to the findings, 56% of leading private investors in Israel and 55% of participating investment funds halted pre-seed investments during this period.

Israel is known for being a unique and attractive landscape not only for the likes of global blue chip businesses but for investors worldwide. For those looking to invest with a budget of under $10,000, there are various avenues to consider that can align with your financial goals and support the Israeli economy. This article aims to outline practical steps and considerations for making informed investments in Israel, tailored for an audience supportive of the nation’s growth and prosperity.

Understanding the Investment Climate

Before diving into specific investment strategies, it’s crucial to grasp the economic and political environment of Israel. The country’s economy is diverse, with significant contributions from the high-tech industry, manufacturing, and services. Despite geopolitical challenges, Israel has demonstrated resilience and continued growth, often cited for its innovative prowess and entrepreneurial spirit.

1. Stock Market Investments

Investing in the Israeli stock market is one of the most straightforward ways to gain exposure to the country’s economic growth. The Tel Aviv Stock Exchange (TASE) lists numerous companies across different sectors, offering a range of options for investors.

Courtesy Marga Santosa, via Unsplash
  • Exchange-Traded Funds (ETFs):  ETFs that track the performance of Israeli stocks can be an excellent choice. ETFs like the iShares MSCI Israel ETF (EIS) provide diversified exposure to top Israeli companies, allowing investors to bet on the country’s economy as a whole.
  • Individual Stocks: If you prefer a more hands-on approach, consider investing in individual stocks of Israeli companies. Sectors like technology, healthcare, and clean energy are particularly promising. Research and choose companies with strong growth potential and a solid financial foundation. You can quickly find out who all of those Israeli companies are by getting a copy of the Israeli Stock List ebook, for only $9. Many of those Israeli companies can be purchased on Etoro trade 5,000+ instruments with a trusted broker. founded by Israeli entrepreneur Yoni Assia, Etoro boasts has over 30 million users with an intuitive onboarding process and interface.

2. Venture Capital and Start-Up Investments

Israel’s startup ecosystem is among the most vibrant in the world. For investors passionate about technology and innovation, putting money into early-stage Israeli startups could be rewarding.

  • Crowdfunding Platforms: Platforms like OurCrowd offer a way to invest in Israeli startups with smaller amounts of capital. These platforms allow individual investors to participate in venture capital funding rounds, typically reserved for high-net-worth individuals and institutional investors.
  • Angel Investing Networks: Joining an angel investing network can also provide opportunities to invest in Israeli startups. While this option might require more than the $10,000 threshold, some networks may allow smaller investments in syndicates.

3. Bonds and Fixed Income

For those seeking a more conservative investment avenue, Israeli government bonds or corporate bonds could be an attractive option. They offer a way to earn fixed returns while contributing financially to the country’s development.

Credit Austin-Distel
  • Israel Bonds: Purchasing bonds directly from the State of Israel is possible through Israel Bonds. These bonds come in various denominations, starting at low amounts, making them accessible for investors with less than $10,000, even $5,000
  • Corporate Bonds: Israeli corporate bonds can be another way to diversify your investment portfolio. These are issued by companies rather than the government and tend to offer higher yields, albeit with a higher risk compared to government bonds.

4. Real Estate Investment Trusts (REITs)

Investing in Israeli real estate indirectly through REITs is a viable option for those interested in the property market but without the means to buy real estate directly. REITs are companies that own, operate or finance income-generating real estate, and their shares are traded on stock exchanges.

Credit Etienne – Beauregard – Invest in Israeli Real Estate
  • Benefits of REITs: REITs offer liquidity, diversification, and potential income through dividends. They allow investors to gain exposure to the real estate market with a smaller capital outlay. RIT1:TLV is listed on the Tel Aviv Stock Exchange and can be purchased through Hargreaves Landsdowne.

Navigating Legal and Tax Considerations

Investing in a foreign country comes with its set of legal and tax implications. It’s crucial to understand the Israeli regulatory framework, taxation on investments, and any bilateral agreements between your country of residence and Israel that might affect your investments.

  • Professional Advice: Consulting with a financial advisor or tax professional who has experience with international investments and specifically Israeli markets is highly recommended. They can provide tailored advice based on your financial situation.
  • Stay Informed and Diversified: Regularly update yourself on economic news and trends impacting the Israeli market. Remember, diversification is key to minimizing risk. Spread your investments across different sectors and avoid putting all your eggs in one basket. Websites such as isranomics.com and Times Of Israel are great resources on Israeli economy and business news.
  • Navigate Currency Fluctuations: Be mindful of how exchange rate fluctuations can affect your investment returns. You can send money to Israeli bank accounts for very low fees at Wise
  • Start Small & Grow Gradually: As a beginner, it’s wise to start with a modest investment and gradually increase your involvement as you gain knowledge and confidence.
  • Seek Professional Guidance: When navigating the investment landscape, consider seeking advice from a qualified financial advisor to align your investments with your personal financial goals and risk tolerance.
Crediit Glen Carstens

Putting your money into Israel’s vibrant and cutting-edge economy presents an invigorating chance, even for those with modest funds, to engage with its dynamic market. By getting to grips with the investment landscape, selecting appropriate investment methods, and keeping up-to-date, you can start a fulfilling investment adventure that may yield enticing gains. It’s important to note, that conducting in-depth research and consulting with investment professionals are essential actions for any investor aiming for success. Your investment into the innovation nation needs to not only a patriotic one but a well-informed one.

The Israel Stock List Ebook updated for 2024 is now available at an introductory price of only $9. This simple eBook provides a comprehensive list of all the Israeli-founded companies that can be purchased on the international markets.

The Israel Stock Tracker Updated for 2024 contains all of the Israeli-founded companies listed on the New York Stock Exchange, NASDAQ, and London Stock Exchange. The spreadsheet allows you to track the share price of those Israeli-founded companies.

Purchase stocks in Israeli Founded Companies at Israeli-founded brokerage, Etoro, and join the millions of stock investors worldwide. You can buy stocks for as little as $50.

by Jon Simmons – Director of Israelinvestment.org

Want to be kept up to date on future articles on how to support Israeli Businesses? Subscribe to the Open Invest Newsletter for free today.

Disclaimer: This article is for informational purposes only and should not be considered financial advice.

Sources;

Israel’s Startup Experience – by Isranomics

How to Invest in Israel for less than $1000 – Jon Simmons

How to Buy Israeli Stocks – Jonathan Simmons

Why Israeli Companies Need Our Support – Jonathan Simmons

Seizing the Moment, Why Experts Believe Now is the Golden Opportunity for Investing in Israel – Eze Vidra

Top Israeli Companies Listed on the London Stock Exchange – Jon Simmons – Coming March ’24

How to Find Good Israeli Stocks – Publishing April 2024

Invest in Israel for less than $50,000 – Publishing March ’24

Invest in Israel for less than $1 Million. – Publishing March ’24

Top Israeli Companies Listed on the Nasdaq – Jon Simmons – Publishing March ’24

Top Israeli Companies Listed on the New York Exchange  – Jon Simmons – Publishing April ’24

How to Invest in Israeli Real Estate as a Non-Israeli – Jon Simmons – Publishing in May

Want to be kept up to date on future articles on how to support Israeli Businesses? Subscribe to the Open Invest Newsletter for free today.

About the Author
Jon is active in supporting bilateral investment between Israel, the West Bank, and all supporters of Israel from the UK, US, EU and India. As director of israelinvestment.org, and author of Partnering for Palestinian Prosperity, he believes that active investment and support for Israeli and Palestinian tech innovation is one of the best ways bring about prosperity and reconciliation in the Middle East, pursuing ethical profit for all investors. In the spring Jon supported the opening of the International Prayer Room in Bethlehem. The aim is to encourage Westerners visiting Israel to spend time in the West Bank, and find creative space for sanctuary. During the spring tour, Jon met with Palestinian businessmen and women in the West Bank, to try to understand what they need from Western consumers and businesses to help them and other Palestinians build a financially independent and prosperous future. This inspired Jon to write the series of articles called Partnering for Palestinian Prosperity. The aim of the series is to demonstrate that under very challenging circumstances, Palestinians have persevered to build businesses and viable ventures that are worthy of active encouragement and investment from the West. In 2018, Jon co-lead a group of international and local musicians as part of Music on The Wind tour, performing live to communities on ‘both sides’ of Israel and Palestine. The aim was to invest in the people through the healing and restoration power of live music, regardless of their background. Jon wants to ultimately simplify investing in Israel for Non Israeli, primarily in Real Estate, Israel Stocks, and helping Non Israelis get working Visa's.
Related Topics
Related Posts