Start-Up Nation Central and the Neocons

In 2009, a book titled Start Up Nation: The Story of Israel’s Economic Miracle, written by American neoconservative Dan Senor and Jerusalem Post journalist Saul Singer (unrelated to Paul), quickly rose to the New York Times bestseller list for its depiction of Israel as the tech start-up capital of the world. The book — published by the Council on Foreign Relations, where Senor was then serving as Adjunct Senior Fellow — asserts that Israel’s success in producing so many start-up companies resulted from the combination of its liberal immigration laws and its “leverage of the business talents of young people with military experience.”

“The West needs innovation; Israel’s got it,” wrote Senor and Singer. In a post-publication interview with the blog Freakonomics, Senor asserted that service in the Israeli military was crucial to Israel’s tech sector success, stating that:

“Certain units have become technology boot camps, where 18- to 22-year-olds get thrown projects and missions that would make the heads spin of their counterparts in universities or the private sector anywhere else in the world. The Israelis come out of the military not just with hands-on exposure to next-gen technology, but with training in teamwork, mission orientation, leadership, and a desire to continue serving their country by contributing to its tech sector — a source of pride for just about every Israeli.”

The book, in addition to the many accolades it received from the mainstream press, left a lasting impact on top Republican donor Paul Singer, known for funding the most influential neoconservative think tanks in America, as noted above. Paul Singer was so inspired by Senor and Singer’s book that he decided to spend $20 million to fund and create an organization with a similar name. He created the Start-Up Nation Central (SUNC) just three years after the book’s release in 2012. To achieve his vision, Singer – who is also a top donor to the Republican Party and Trump – tapped Israeli economist Eugene Kandel, who served as Netanyahu’s national economic adviser and chaired the Israeli National Economic Council from 2009 to 2015.

Senor was likely directly involved in the creation of SUNC, as he was then employed by Paul Singer and, with neoconservatives Bill Kristol and Robert Kagan, co-founded the FPI, which Singer had long funded before it closed in 2017. In addition, Dan Senor’s sister, Wendy Singer (unrelated to either Paul or Saul), long-time director of Israel’s AIPAC office, became the organization’s executive director.

SUNC’s management team, in addition to Eugene Kandel and Wendy Singer, includes Guy Hilton as the organization’s general manager. Hilton is a long-time marketing executive at Israeli telecommunications company Amdocs, where he “transformed” the company’s marketing organization. Amdocs was once highly controversial in the United States after it was revealed by a 2001 Fox News investigation that numerous federal agencies had investigated the company, which then had contracts with the 25 largest telephone companies in the country, for its alleged role in an aggressive espionage operation that targeted the U.S. government. Hilton worked at Microsoft prior to joining Amdocs.

Beyond the management team, SUNC’s board of directors includes Paul Singer, Dan Senor and Terry Kassel — who work for Singer at his hedge fund, Elliott Management — and Rapheal Ouzan. Ouzan was an officer in the elite foreign military intelligence unit of Israel, Unit 8200, who co-founded BillGuard the day after he left that unit, which is often compared to the U.S.’ National Security Agency (NSA). Within five months of its founding, BillGuard was backed by funding from PayPal founder Peter Thiel and former CEO of Google, Eric Schmidt. Ouzan is also connected to U.S. tech companies that have greatly expanded their Israeli branches since SUNC’s founding — such as Microsoft, Google, PayPal and Intel, all of which support Ouzan’s non-profit Israel Tech Challenge.

According to reports from the time published in Haaretz and Bloomberg, SUNC was explicitly founded to serve as “a foreign ministry for Israel’s tech industry” and “to strength Israel’s economy” while also aiming to counter the Boycott, Divest and Sanctions (BDS) movement that seeks to use a nonviolent boycott to end the illegal military occupation of the West Bank and Israeli apartheid, as well as the growth of illegal Jewish-only settlements in occupied Palestinian territory.

Since its founding, SUNC has sought to transfer tech jobs from foreign companies to Israel by developing connections and influence with foreign governments and companies so that they “deepen their relationship with Israel’s tech industry.” Though SUNC has since expanded to include other sectors of the Israeli “start-up” economy, its focus has long remained on Israel’s tech, specifically its cybersecurity industry. Foreign investment in this single Israeli industry has grown from $227 million in 2014 to $815 million in 2018.

In addition to its own activities, SUNC appears to be closely linked to a similar organization, sponsored by Coca Cola and Daimler Mercedes Benz, called The Bridge, which also seeks to connect Israeli start-up companies with large international corporations. Indeed, SUNC, according to its website, was actually responsible for Daimler Mercedes Benz’s decision to join The Bridge, thanks to a delegation from the company that SUNC hosted in Israel and the connections made during that visit.