Resilience in the Face of Crisis: How Israeli Startups Thrive During Uncertainty

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In a world where geopolitical shocks can freeze billion-dollar deals overnight, Israeli startups are proving that adaptability and resilience aren’t just survival tactics — they are superpowers. In a recent panel hosted by Google and Calcalist’s Startup Week, Ilay Marom, COO of NaNose Medical, and Yair Levy, CEO of Brain.space, shared raw, personal accounts of leading their companies through the turmoil that followed October 7, 2023. Their experiences are a testament to the unbreakable spirit of Israel’s tech ecosystem, especially when everything seems to be falling apart.

Marom and Levy represent two distinctly innovative startups. NaNose Medical is developing revolutionary breath-based diagnostics, while Brain.space is turning neurophysiological data into powerful insights on cognitive and emotional states. Yet both faced the same existential challenge when war broke out: how do you keep a young, fragile company alive — and even growing — while the world crumbles around you?

Their stories capture not just the reality of wartime entrepreneurship but also the unique cultural grit embedded in Israel’s startup DNA. What began as a discussion on growth during instability quickly evolved into a masterclass on crisis management, team loyalty, and the future of innovation under pressure.

Lessons from the Frontlines of Innovation

Startups at War:

Ilay Marom drew a powerful analogy: running a startup is like going to war. It’s a daily battle that demands a team willing to push through chaos without losing focus. This became literal on October 7 when conflict erupted mid-roadshow, throwing funding efforts into limbo and recalling key personnel, including Marom, to reserve duty.

Tech Disruption in Healthcare:

NaNose Medical isn’t just a typical health-tech venture. Their device analyzes exhaled breath to detect diseases like lung cancer and fatty liver disease early — a life-saving tool still in the clinical validation phase across ten hospitals. Losing investors due to geopolitical tensions could have been a fatal blow. Instead, emergency grants from the EU, Israel Innovation Authority, and Google filled the void.

Brain Data as Business Intelligence:

Yair Levy’s Brain.space translates signals from the human brain into actionable data for industries ranging from wellness to pharmaceuticals. They were one day away from signing a major deal when the war hit. Despite the freeze, his team’s response was almost immediate: employees returned voluntarily, covered multiple roles, and helped maintain operational continuity.

Adaptability as a Core Value:

Both startups leaned heavily on one trait: flexibility. Developers turned into salespeople. Operations teams got involved in hardware assembly. Junior staff rose into leadership roles overnight. The lines between departments blurred as everyone pulled together, determined not just to survive but to grow stronger.

Strategic Use of Crisis:

Ironically, the chaos revealed the

Advice to Founders:

Both leaders emphasized the importance of team selection. When disaster strikes, the right people won’t just work — they’ll fight for the mission. Marom called it inspiring. Levy, meanwhile, pointed to Israel’s cultural knack for pivoting under pressure as the secret weapon in uncertain times.

Cautious Optimism for the Future:

Despite the emotional and financial toll, both remain cautiously optimistic. Marom acknowledged that foreign investment is still slow to return, but he hopes it’s just a matter of time. Levy echoed that sentiment, adding that startups must now be more selective in choosing investors. Those who stay are the right ones.

What Undercode Say:

The stories of NaNose Medical and Brain.space are more than isolated anecdotes — they represent a blueprint for how resilient startups can defy even the harshest conditions. From an analytical standpoint, this narrative aligns with several core startup principles that are often tested but rarely so visibly validated.

1. Crisis as a Catalyst:

Undercode observes that true innovation often arises under constraint. This aligns with historical patterns: wartime economies have spawned breakthroughs from radar to the internet. Israeli startups, embedded in a country with constant geopolitical tension, are uniquely positioned to thrive under pressure. It’s not that crises don’t hurt them — it’s that these companies are structurally built to pivot fast.

2. Team DNA Over Tech:

While many startup articles focus on product-market fit or funding rounds, this case highlights something different: human capital. The ability of a junior developer to step into a leadership role,

References:

Reported By: calcalistechcom_2923a1ae35f3ecd51d11ecf7
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