5 Predictions for 2012 – The Israeli Version

I did the predictions thing for 2009 and 2010, and then skipped 2011. Now I think it's worthwhile to go at it again (Yes, joining many others). In the past 2 attempts I listed 7 predictions. This time, I will focus on 5 – 3 Positives, and 2 negatives. I even tried to have a very clear score card to measure in a year from now. So here it goes:

3 Positives

1. Israeli VCs will raise money. There are several funds out there raising money. It may be "wishful thinking", but I am positive that Pitango, Magma, and others will raise money. Some will finalize in 2012, others in 2013.
2. At least 3 large Silicon Valley tech companies will open development centers in Israel (like Apple). Some will be based on acquisitions, others just in order to tap into the talent.
3. At least 2 major acquisitions will happen (above $400M). Hope to see Google doing something substantial locally.

2 Negatives

1. No Israeli IPO. I don't think we will see any major Israeli IPOs (Nasdaq) in 2012. The good companies will wait for 2013.
2. Local cost of engineering will continue to rise. With the increase of startup and large company activity, we need to invest A LOT in local talent growth; otherwise the supply & demand will continue to hurt us.