Podcast Summary: "Is American Investment In Israel Drying Up? - Live from the Z3 Summit"

Podcast: What’s Your Number? (Ark Media)
Hosts: Yonatan Adiri, Michal Lev-Ram
Episode Date: November 26, 2025
Panel Guests:

• Joy Sisisky (President and CEO, Jewish Federation Bay Area)
• Omer Fine (Chief Economic Consul, Israel to the US West Coast)
• Sean McGuire (Partner, Sequoia Capital)
  Event: Z3 Summit, Palo Alto

Episode Overview

This special episode, recorded at the Z3 Summit, delves into the changing dynamics of economic and philanthropic ties between the United States and Israel, especially in the aftermath of October 7th. Host Michal Lev-Ram moderates a panel exploring whether US financial support and investment in Israel are waning, analyzing trends in the startup ecosystem, philanthropy, and international relations with insights from business leaders, government officials, and major investors.

Key Discussion Points & Insights

Setting the Stage: Host Numbers & Context

• [00:10] Yonatan Adiri shares his number: 15–the number of participants in a groundbreaking Israeli clinical trial for lab-grown human cornea transplants.
• [00:43] Michal’s number: 1,200–the expected immigration of Bnei Menashe Jews from India to Israel by 2026, a discussion that transitions to global Jewish demographics and migration.
• [03:38]–[06:17] Discussion of economic normalization post-October 7th, recent visits by Indian and Saudi delegations, and Israeli central bank moves signifying economic resilience.

Market Check-In: Israeli Stocks and Trends

• [08:18]–[11:39] The "Windex" (What's Your Number Index) tracks Israeli-listed companies:
  • Heavy losses in key Israeli tech stocks (e.g., Wix, Palo Alto Networks, Monday.com) aligned with global tech market jitters and AI bubble concerns.
  • Year-to-date, Windex still outperforms S&P and NASDAQ, carrying optimism into year-end.

The Z3 Summit Panel: Is Investment Drying Up?

1. Current State of US-Israel Economic Ties

• [12:13]–[15:14] Michal introduces the panel, summarizing the premise: Decades of mutually beneficial US-Israel economic ties face new complexities since October 7th in both the philanthropic and investment landscapes.

2. Philanthropy Trends Pre- & Post-October 7th

• [15:14]–[18:08] Joy Sisisky outlines the Bay Area Federation’s shift:
  • A massive spike in emergency giving to Israel immediately after October 7th (tripling annual unrestricted donations).
  • Donations have since reverted to pre-war levels. The attention on Israel hasn’t translated into sustained financial support, with donors also distracted by rising antisemitism and local security needs in the US.
  • Security needs for Jewish institutions have significantly increased.

Quote:

"Giving levels to Israel have since gone back to normal, pre October 7th levels, meaning people are not giving to Israel, even though I think it's taking up a lot of mindshare... There were rising needs here in the Bay Area that needed to be addressed, primarily around antisemitism."
— Joy Sisisky ([16:50])

3. Investing Climate: Israeli Startups, VC, and Resilience

• [18:19]–[23:01] Omer Fine and Sean McGuire weigh in on:
  • Israeli entrepreneurs’ resilience, maintaining international business ties despite war and uncertainty.
  • Sequoia’s increased interest in Israeli startups since 2020 (“outcomes used to be smaller, now top-tier companies like Wiz are changing perceptions”).
  • A crisis of confidence post-October 7th, as VCs worried about workforce mobilization, but Q4 2023 results proved Israeli startups remained highly productive.

Quote:

"All these Israeli companies just had incredible Q4s, and I felt unbelievably proud... Everyone, all of my partners understood something is different in this ecosystem. They have a higher purpose than just building a company."
— Sean McGuire ([23:01])

4. The Philanthropy Dilemma: Israel vs Local Needs

• [25:01]–[27:04] Joy discusses the philanthropic balancing act:
  • Nearly $1B raised by federations post-attack, mostly spent on emergency aid in Israel.
  • Local communities now must split resources between Israel and surging antisemitism/security needs at home.
  • Rise in grant vetting due to BDS and anti-Zionist affiliations, challenging donors to align gifts with their values.

Quote:

"We do not allow a penny to go out the door... that is in any way threatening Israel as a Jewish democratic state or promotes antisemitism."
— Joy Sisisky ([35:26])

5. Venture Capital & Sectoral Shifts

• [27:20]–[29:41] Omer and Sean discuss:
  • Israeli VCs (not startups) face fundraising challenges.
  • Big winners are in AI, cybersecurity, and defense; impact, health, and food tech sectors struggle.
  • Israel’s tech sector remains a "machine" for producing high-value companies, now with increasing international VC respect.

Quote:

"It's very much a tale of haves and have-nots... High tech alone is doing very, very well. Everything else, it's a much more challenging time."
— Sean McGuire ([28:18])

6. Geopolitical Realignment: Isolation or New Opportunities?

• [30:32]–[34:08] Sean discusses:
  • Fears of Israel’s isolation are countered by growing ties with India, Singapore, UAE, Kazakhstan.
  • America remains Israel’s most crucial ally, but Israel’s flexibility in forging new alliances is rising.
  • Iran’s weakening regime and broader regional shifts suggest new economic and cultural channels.

Quote:

"Sure, there are people that hate Israel and want to destroy Israel, but I really view it as a secondary target... America is the actual target."
— Sean McGuire ([33:25])

7. Social & Philanthropic Polarization

• [35:26]–[39:40]
  • Donor vetting and recipient hesitancy (incl. reproductive rights orgs refusing Jewish funds for fear of association).
  • Jewish giving has shifted: historically 40% to Jewish causes, 60% nonsectarian; post-October 7th, percentage to Jewish causes rose, overall giving down.
  • Polarization is profound: “even within Jewish families,” with Israel-Palestine issues as complex as “doing a PhD in quantum gravity."

Quote:

“I would encourage people to try to think about how do you keep your own just family unit together... This issue is so complicated.”
— Sean McGuire ([39:50])

8. Bright Spots and Future Opportunities

• [41:42]–[48:28]
  • Impact Investing: Federations are activating dormant donor-advised funds to support small businesses in Israel (including Israeli Arabs), loans for displaced people, and affordable homeownership.
  • International Partnerships: UAE, India, Kazakhstan as models/partners for innovative Israeli tech (esp. in climate, water, agritech).
  • Startup Formation: Despite war and fewer flights, signs point to an upswing in Israeli startup creation. International investors like Sequoia see more promising Israeli startups than ever.

Quote:

“It’s just to me, it’s the two ecosystems where I see the highest quality opportunities... in the west, it’s San Francisco and it’s Tel Aviv.”
— Sean McGuire ([45:59])

Memorable Visual:

• The absence of direct SF-Tel Aviv flights symbolizes physical, psychological, and economic distance; panelists highlight the need for renewed in-person engagement.

Notable Quotes & Memorable Moments

• On Israeli resilience and investment risk:
  “I knew, I was like, don’t worry, you don’t understand how resilient Israel is... I felt unbelievably proud at the time.”
  — Sean McGuire ([23:01])

• On donor polarization and complexity:
  "I've worked at Federation for 10 years... Maybe once or twice a year a grant comes up that do not meet our criteria. In the first 18 months after October 7, we were getting… sometimes like a dozen a week."
  — Joy Sisisky ([35:26])

• On the BDS movement and new partnerships:
  “There are a lot of people trying to isolate Israel right now. Like that is a fact. That said, I have a huge amount of optimism... ties with India, Singapore, and now Kazakhstan.”
  — Sean McGuire ([30:32])

• On the American stock market and AI bubbles:
  “If we delivered a bad quarter, it is evidence there’s an AI bubble. If we delivered a great quarter, we are fueling the AI bubble.”
  — Jensen Huang (quoted by Michal, [49:22])

Timestamps of Key Segments

| Segment | Timestamp | |------------------------------------------------|---------------| | Opening, Numbers of the Week | 00:10–02:04 | | Israel’s post-war economy, global politics | 02:13–06:17 | | Windex Market Check and Tech Performance | 08:18–11:39 | | Panel Introduction at Z3 Summit | 12:13–14:43 | | Philanthropy pre/post October 7th | 15:14–18:08 | | Israel investor and startup ecosystem | 18:19–23:01 | | Antisemitism’s effect on US philanthropy | 24:32–27:04 | | VC, sectoral, & ecosystem challenges/trends | 27:20–29:41 | | Global partnerships, alliances & BDS | 30:32–34:08 | | Grant vetting, politics, and donor values | 35:26–39:40 | | Polarization within tech & Jewish communities | 39:40–41:29 | | Opportunities: impact investing, partnerships | 41:42–45:04 | | Israeli innovation & startup outlook | 45:43–46:49 | | Reflections on travel, cultural connections | 46:49–48:28 | | Closing, AI bubble quote, wrap-up | 48:42–51:01 |

Conclusions & Takeaways

• US investment in Israel is not drying up—rather, it’s becoming more complex, with distinctions between tech/VC investment (resilient, and even ascendant) and philanthropic flows (spiking during crises, now resetting in face of local US priorities).
• Antisemitism in the US is driving a ‘double bind’ for Jewish communities: the urge to support Israel vs. urgent needs to protect local Jewish life.
• International alliances are diversifying—India, UAE, Kazakhstan, and Singapore are emerging as meaningful partners as threats of isolation intensify.
• Israeli tech entrepreneurship remains robust; however, overall ecosystem health is uneven, with non-tech sectors and VCs under more strain.
• Human connection matters: The practical difficulties of travel and growing polarization (even within families) challenge traditional models of partnership, requiring fresh tactics, innovation, and dialogue.

For listeners seeking an up-to-date, nuanced view of the Israeli economy’s global ties post-October 7th, this episode offers honest assessments, hard data, and a window onto the debates shaping the future of American investment and philanthropy in Israel.