For over 30 consecutive weekends, a wave of protests has surged through the streets of Tel Aviv as tens of thousands of Israelis voice their dissent against government initiatives aiming to diminish the autonomy of the Supreme Court and curtail the judiciary’s power.

Chen Amit’s stand for democracy

Amid this chorus of disapproval, Chen Amit, the co-founder and CEO of Tipalti, a fintech startup valued at $8.3 billion, has been a prominent figure among the demonstrators.

Amit’s commitment to the cause reflects his belief that democracy is at stake, even as he navigates the challenges posed by the Israeli government’s policies.

Tipalti, a global accounting and payments company founded by Amit and President Robert Israch in 2010, operates from Israel but is headquartered in California.

Despite its modern offices overlooking the site of a recent attack, it is not the Israeli-Palestinian conflict that weighs most heavily on Amit’s mind. Instead, it is the looming judicial overhaul that concerns him the most.

This upheaval has prompted Amit to redirect resources and talent abroad, as the instability and risks associated with the reforms prompt a need for greater certainty.

Amit’s apprehensions resonate beyond his company. A recent survey by “Start-up Nation Central” (SNC) revealed that nearly 70% of more than 500 startups polled are contemplating measures such as relocating funds, staff, and even their headquarters outside Israel in response to the judicial overhaul.

Startup investments in Israel have plummeted, dropping 70% between the previous year and the present one, according to Ari Strasberg, SNC’s Vice President of Strategy.

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The challenges extend beyond financial concerns. The value of the Israeli currency, the shekel, has diminished by over 5% against the US dollar this year.

Experts, including officials from Israel’s Finance Ministry and institutions like Moody’s and Morgan Stanley, warn that the ongoing reforms could significantly damage the economy, potentially costing as much as 100 billion shekels ($27 billion) in economic growth annually.

While government officials downplay these concerns, citing the strength of Israel’s economy, the tech sector, a driving force behind the country’s exports, faces uncertainty. Technology, contributed by multinational corporations and indigenous startups, constitutes nearly half of Israel’s exports.

Protests persist in the hope of government reversal or intervention by the Supreme Court. Until then, the Israeli tech industry, often celebrated as the “Startup Nation,” grapples with the possibility of a new, less promising moniker.