Despite their country’s reputation for generating innovative start-up companies, Israelis are less likely than their peers in other developed economies to launch a new business. The Israeli business environment is unfriendly—the regulatory burden is heavy, costs are high, and domestic markets are often closed to new competition. Israeli start-ups, however, operate outside this framework. They are not business enterprises in the usual sense, i.e., seeking to customers, markets, sales, and profits; rather, they are designed to develop an innovative product or service and prove it in the marketplace with the expectation that a larger company, preferably a foreign multinational, will acquire them. Moreover, Israeli start-ups focus on the global market, thus are little concerned about domestic barriers, much less held back by them.