Managing in Emerging Economies
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MGMT 895-751 ISRAEL: VENTURE CAPITAL AND ENTREPRENEURIAL MANAGEMENT Global Business Week | MBA Program for Executives September 6-10, 2015 Faculty: Raphael (“Raffi”) Amit Professor of Management The Robert B. Goergen Professor of Entrepreneurship Doug Collom Adjunct Professor of Management Staff Member: Amy Hazen, Associate Director Location: Tel Aviv, Israel Dates/Times:* Sunday, September 6: 5:00pm – 9:00pm Monday, September 7: 8:30am – 6:30pm Tuesday, September 8: 8:00am – 6:30pm Wednesday, September 9: 8:00am – 6:30pm Thursday, September 10: 8:00am – 9:00pm *Specific times may vary as activities are scheduled Course Credit: 0.5 cu Course Theme: Venture Capital and Entrepreneurship in Israel In the last 25 years, Israel has gained prominence as one of the leading technology and innovation centers in the international community. With thousands of startups that flourish in the country today, Israel has more startups per capita than any other country in the world. Israel first achieved renown in the technology sector in the 1990s for its innovation in the semiconductor space, then moved heavily into software in the 2000s, and today is branching out into a range of sectors including: internet, mobile, big data, communication infrastructure, cyber security and defense technologies, enterprise software, agri-tech and health tech. As you might suspect, this growth faces a unique challenge; because Israel has a small domestic market, Israeli startups, by necessity, must look to international markets for growth. 08/10/2015 1 Course Objectives: This class will highlight the globalization of venture capital and entrepreneurship and concentrate on entrepreneurial finance, product-market strategy, organizational issues, and business models of Israeli technology companies. The learnings will be based on (i) insights from leading VCs, entrepreneurs and government officials (ii) a range of readings and supporting industry facts to provide context for the technology environment in Israel and its relationship with the U.S., Europe, and the rest of the world; (iii) daily site visits to companies that will provide students with an opportunity to participate in a dialogue with the executives of the companies we visit. Class activities will include short lectures; site visits to venture capital backed companies and incubators; and debriefing presentations by student teams. Site visits include different cities within Israel including: Metro Tel Aviv; Haifa, known for a range of technologies that emerge from The Technion-Israel Institute of Technology; Beer-Sheva, known for cyber security, agri- technologies and homeland security technologies; and Jerusalem, known for health tech, media and life sciences. Students will be expected to do the course readings, to participate in discussions and class debriefings and to write a paper related to Israel’s entrepreneurial community. The class will be led by Professors Raffi Amit and Doug Collom, who teach MGMT 804 Venture Capital and Entrepreneurial Management as an elective course in Term 6 for the MBA Program for Executives, both in Philadelphia and in San Francisco. Raffi is the Robert B. Goergen Professor of Entrepreneurship and Professor of Management. Raffi was born in Jerusalem, Israel and is knowledgeable about Israeli technology and venture capital communities. Doug is an Adjunct Professor of Management. He spent over 25 years as a partner with a large law firm in Silicon Valley advising technology startup companies prior to joining Wharton. Study Team Formation Class assignments will be undertaken by study teams of up to 5 students per team. Study teams must be formed with team names submitted to the professors and Amy Hazen no later than Friday, August 21, at 5:00pm PDT/8:00pm EDT. Each study team will be responsible for: • Study and evaluation of a pre-designated Israeli company, assigned by the professors, prior to arrival in Israel. Each designated organization is one that we will visit. Study team members will be responsible for researching the background, industry and business model of the assigned company, and for leading the Q&A session immediately following the company’s presentation to our class. • A debrief on the team’s assigned company to the class at end of the day (in some cases, immediately following the visit). Each debrief will consist of a presentation not to exceed 10-15 minutes in length and will focus on key observations and insights. Oral presentations without PPT are of course acceptable. Recall that there was learning going on before PowerPoint. 08/10/2015 2 Grading Criteria: • 45%: Final paper on a topic of your choice related to the course: 12-16 pages, double spaced, excluding tables, displays or references, using Times New Roman 12-point font, due no later than Friday, September 25, 2015 at 5:00pm EDT • 25%: Individual participation in lectures, discussions, and company visits • 30%: Preparation/briefing/debriefing work, by study team assignment, based on readings, lectures, and company visits Required Reading: Senor, Dan and Singer, Saul. Start-up Nation: The Story of Israel’s Economic Miracle. Twelve, New York, 2009. Optional reading: Drori, Israel; Ellis, Shmuel; and Shapira, Zur. The Evolution of a New Industry: A Genealogical Approach. Stanford University Press, 2013. Please make every attempt to read these books before the start of the course. They will provide a solid context and important historical insights. These books will NOT be available at the Penn Bookstore. Other readings are indicated in the syllabus below and will be compiled in a course pack. The course pack will be available on Canvas and Study.net. Given the concentrated schedule that we will have while on the ground in Israel, it is highly recommended that you complete ALL of the required readings in advance of our trip. Company Visit Etiquette: This course will involve bus travel and a number of site visits to companies in some of the major cities in Israel. Please note the following: • Please be exactly on time for our travel by bus. It’s important we stay on schedule—any stragglers will force the entire group to be late or will be left behind. • Attire for class instruction and for all off-site visits is business casual (no jackets are needed). Be sure to bring and wear your silver Wharton nametag. • Attendance at all lectures and site visits is required. • Please be courteous and respectful at all times during the visits. 08/10/2015 3 • If you ask a question during the Q&A portion of the discussions with executive management of the companies and organizations we visit, please stand up first, state your name, and the company you work for. Speak clearly. Be sure your questions are thoughtful and germane to the presentation. • Keep in mind that you are not only representing Wharton, you are also representing your class, the faculty and staff who have worked hard to put these visits together, and your country. Logistics and General Reminders: • Wharton Sponsored Hotel Nights: Wharton is covering hotel costs for six nights. You will have two options for reservation dates: Check-in on Saturday, Sept. 5, and out on Fri., Sept. 11; or check-in on Sunday, Sept. 6 and out on Sat., Sept. 12. Please be sure that whatever travel plans you opt for include the Sunday, September 6 afternoon session beginning at 5:00pm. You should plan to leave at least 2-2 ½ hours upon arrival in Tel-Aviv for time to pass through customs at the airport and travel to the Sheraton hotel. • Breakfasts: Breakfast will be included each day at the hotel, as will high-speed internet. Lunches will also be provided on Monday-Thursday. Most nights you will be on your own for dinner. • Thursday Departure: Students who seek to depart Israel immediately upon conclusion of the class and the Jerusalem walking tour may do so Thursday evening. U.S. bound flights depart after 11:00pm daily. • Travel plans: Please share with Amy your detailed travel plans so that appropriate hotel booking can be arranged for you. • Local currency: Conversion rate for U.S. dollars to NIS (New Israeli Shekel) is about 3.7 NIS/US$. • Banks/credit cards: Don’t forget to tell your bank you’re travelling. • International calls: Consider getting an international cell phone plan for the time you’re away. • Passport/visa requirements: For U.S. citizens, a visa is not required for a stay of less than 90 days. The traveler must be in possession of a passport valid for 6 months beyond your stay and a round-trip airline ticket. For non-U.S. citizens, more information about visa requirements can be found on the Israel Ministry of Foreign Affairs website. MGMT 895-751 08/10/2015 4 ISRAEL: VENTURE CAPITAL AND ENTREPRENEURIAL MANAGEMENT Daily Schedule Sunday, September 6 through Thursday, September 10, 2015 Day 1: SUNDAY, SEPETEMBER 6 (Tel Aviv) Session 1: Orientation and Class This session will include a course Greeting Introduction overview and updated schedule for the week. 5:00pm–9:00pm Course overview Prof. Amit will moderate a panel that Location: Speaker panel includes Dr. Orna Berry, Former Chief Sheraton Tel-Aviv Scientist of the Israel Office of the Chief Dinner organized by Scientist; Currently Corporate Vice Wharton President of EMC; and Zohar Zisapel, founder and Chairman of the RAD Group of companies and one of the most famous and successful entrepreneurs in Israel. Zohar was formally colonel (RES) in Israeli Intelligence Unit 8200 of the IDF and won the Israeli National Security Prize twice for making substantial contributions to the national security of the country. Both Orna and Zohar are featured in Start-Up Nation. Dinner will follow to allow faculty and students to get acquainted. Spouses and significant others are invited to the panel and dinner. Required Reading for Session 1: • Senor, Dan and Singer, Saul.