VCinJerusalem

Death Over Life? Auschwitz Gets More Tourists Than Jerusalem...

OK, so maybe I exaggerated in the headline, but not by much. Unfortunately the Jerusalem municipality doesn't have very accurate tourism statistics (ok, they have no statistics at all!), but a fair leap to say that Jerusalem did not get much more than 1 million tourists in 2007.

And the former Auschwitz Death Camp , which today is a Polish government run "museam,"  collects tickets at the "door," and they know exactly how many  people visited: "a record number visited....more than 1.2 million in 2007." According to museam spokespeople, the biggest group came from Poland itself (many Polish schools today require students to visit Auschwitz).

It will take me some time to process this, but immediately what I thought when I saw this headline is to think that the real living Jerusalem has to compete with a former death camp for tourists...

Some more food for thought: on the holiest day (or at least the most celebrated) of the Christian calendar, Christmas, the grand total of tourists visiting the birthplace of Jesus (Bethlehem, about ten minutes from house by bicycle) was...around 22,000. And see here for how proud the Israeli foreign ministry was about that!

While I could go on about the culture of death, and the negation of life in favor of a worship of persecution, I will not. I simply would like to hope and pray that 2008 will bring peace to Jerusalem the living, and many more tourists celebrate life. Amen.

Free Wifi...To Be or Not To Be? Does Free Pay? WiFi in Jerusalem

Every time I see another story about free Wifi, I wince. I spent way too much time in the free wifi discussion and reality to read all these stories without taking it a little personally.
Read on to understand ...and to get a "scoop" on life in Jerusalem.

A little background.

Four years ago, motivated by a desire to do something good for Jerusalem, I joined up with some friends (including Mati Herbst, Shai Kavas) to create UnwireJerusalem , a grand project to bring free WiFi access to key areas of Jerusalem. First of all, we were way before our time, a good two years before our friends at Google started to make noise about free Wifi (see here for details on their Mountain View project). Our project was completely non-profit, we recruited companies such as Intel (NASDAQ: INTC), Checkpoint (NASDAQ: CHKP ), Cisco (NASDAQ: CSCO ) Golden Lines (NASDAQ: SMLC )and Compumat  to donate equipment, some cash, and human capital (employee time). Later on we enjoyed some support from the Jerusalem Development Authority and Boot-Net, led by Robby Leon.

When we started we had a few principles:
1. Service needed to be free for end users
2. Coverage was focused on outdoor areas
3. No dependencies on any governmental bodies

With those in mind, we approached business owners in certain areas of downtown Jerusalem, and asked them to host WiFi access points and simple ADSL modems, with all costs associated with the connections for those born by us, except for electricity. Obvious bonus for these business owners (mainly restaurants, coffee shops, etc.) was getting free WiFi in their establishments as well...

It worked out quite well, and in November 2004 we formally launched Unwire Jerusalem. Since then we have had monthly usage in the thousands, and sometimes in the tens of thousands.

Recently I took the very painful and difficult decision to pull the plug on Unwire Jerusalem...yep, we turned off the lights, yanked the plug, cut the cord. Let me try to explain why, and where I think all this (i.e. "free" internet connectivity) is headed.

1. Municipal Support
We had none. We went to literally dozens of meetings with various city officials, and not a one seemed to understand what we were doing and/or why. That we we felt a sense of civic responsibility seemed to mystify most of the city management we met with, and they constantly suspected us of a hidden agenda. Oh, some of the them said nice words, from the Mayor on down, but then completely failed to follow up or do any of what we asked for, even the most minimal. But wait, you say, wasn't one of the principles above no dependency on government? Yes, for the initial launch, but we always wanted some cooperation. And long term, yes, to get serious we needed government buy-in, if it was for public signage or even more for outdoor antenna. As we were not interested in running a municipal network, but rather a service for plain old citizens and visitors, could not get anyone to focus.

2. Business Model
We wanted to keep it free, but were also running the project as a non-profit, with a lot of big names but no major sponsor. Without a Google like backer, my friends and I could not keep up the sustained effort required to keep the network running. The basic costs are (after initial set-up and equipment) connectivity and network maintenance. Connectivity we received from 012  (local Israeli  ISP)  for the first 2 years as a donation. And then they wanted to be paid. We thought about rolling out all kinds of ad support, but could not find ad model that would really operate seamlessly, or that would really generate funds to cover to core operating costs. And bottom line, there was no working full time to implement  such a system.   

3. Need - Or, we created great momentum
When we started (4-5 years ago) there was virtually no free WiFi in Jerusalem, and as I was working out of coffee shops back then, felt it  every day...Today the  reality is very different. I like to think we were part of the momentum that resulted in many establishments directly sponsoring free WiFi, some like Aroma that made it a standard in any of their franchises. Pretty soon free WiFi became the norm in Jerusalem. Now, outdoor wifi is still limited, meaning if I don't want to fork over 20 shekel ($5) for a latte and a cookie, signals are going to be weak. But they are there. Especially downtown, which was our focus anyway.

4. The WOW! Factor
When we envisioned and launched Unwire Jerusalem part of our motivation was to initiate a WOW! response, to push the needle a bit on how Jerusalem was looked at -- as proud Jerusalemites we wanted to show that we are here and now. We succeeded in that, garnering massive publicity and good feeling. Together with momentum I cited above, not much more WOW! factor to milk out of this project.  While possibly we should have pushed more for BOT (Build Operate Transfer)model with municipality, again, we did not want to be dragged down by that in the beginning. And at this point we have given up on the municipality. Perhaps if my good friend Nir Barkat wins the mayoral elections later this year we can revisit...

Based on the above, decided that we had accomplished what we set out to do, and I for one (and may partners in creating Unwire Jerusalem) could not justify spending more time (or money) on it, so we notified 012 to pull the plug a few days ago.

Now comes the bigger question: Does public access free wifi make sense? Well, I believe it does, just as public toilets make sense (by the way, see this April's fools initiative by Googlers...priceless! http://www.google.com/tisp/). Should local governments pay for local toilet facilities in highly trafficked areas? Sure. Could there be some ads in there? Yeah, why not, but that shouldn't be the determining factor!  Consider malls, which are essentially little privately managed towns. All the malls I have been to have toilet facilities that are free to use. And the people that run malls know that they need to be there--and figure the costs into the business model of the mall.

Internet connectivity is a basic service today -- without it difficult to make your way in the world. Municipalities should do all they can to make sure that some level of "free" connectivity is in place (not only WiFi, but banks of computers for public use as well--not everyone has a laptop, no matter how cheap they are becoming).

I obviously could go on and on about this subject, having invested untold hours over the past 4-5 years. And perhaps I will write more in the future.

For now, however, want to look back on what we did with Unwire Jerusalem, smile, and thank all of those who helped along the way. 

But Is It Scaleable? Jerusalem as a Start-up

One the core questions we ask when analyzing a start-up idea is the scalability. And we talk about scalability, we focus on two areas: the technology and the people.

OK, so obvious what is meant about the technology...sometimes something works nicely in a demo implodes with the stress of real deployment. The early  wizardry of Google was figuring out how to quickly (and cheaply) add computing power.  Today is not so different, as Sergei and Larry are focusing on how to power [literally] their business cheaper and more efficiently.

Now we also focus on the people. Are these the people that can scale with the move from idea to business? Can they scale along with the business? It's a very different thing to manage a company of three than thirty, three hundred, or three thousand. What I love is the 0-30 stage. After that I don't scale so well.

As we await the visit next week of President Bush to Jerusalem, and the focusing of the world media on the earthly Jerusalem, we should think for a minute about the scalability of Jerusalem, both in terms of its "technology" (the physical city itself, it's infrastructure) and its people.

On a physical level, Jerusalem is a city on a hill (actually many hills). With a current population of roughly 750,000, Jerusalem each year enjoys somewhere between 1-2 million tourists. In modern times we have never gone above 2 million. Now, just for comparison, Manhattan has about 2 million residents (and is relatively flat), but gets 47 million tourists a year. Are we ready for that scale on a physical level? Nope. Can we scale up? Maybe.  But it won't happen by itself. Takes a lot of planning, marketing, strategic thinking. Much of our tourism is centered around historical sites...can they take a 20 fold increase in traffic? Maybe.

And what about the people? Well, historically Jerusalem was a  city of  mass pilgrimage.  My good friend  Sami Abu Dayyeh,  owner of  Netours (largest tour operator of religious tourism in Holy Land), believes that if we the people of Jerusalem learn how to work together, we can bring in tens of millions of tourists without major problems. We could have charter flights coming directly to Jerusalem, with cheaper hotels on the outskirts of town, with smart planning for entrance to various holy sites. Just think, people wait hours on line for a ride at Disneyland (and with technology many rides have timed admission to avoid the lines). More people visit Disneyland Paris in a given year than Jerusalem! If we, the people living here, share a common vision, and put in place the right management, Jerusalem is imminently scalable.

But if we continue to argue about who owns which rock, we will remain where we are now--with a conflict that is very scalable, unfortunately, and a reality that is very limited.

May Jerusalem be blessed with  management that can take it  to the next level and beyond. I'll help where I can...

I Believe in Miracles: Jerusalem ROCKS!

Well, with a lot of bumps (and humps, Ms. Fergie ) along the way, the impossible is happening this Sunday, September 9, at 4 PM when we open the doors for Jerusalem ROCKS! at Sultan's Pool just outside Jaffa Gate of the Old City of Jerusalem (NOTE THE VENUE CHANGE).

When I walked into the studios of Israel Broadcasting "Channel One" studio, the producer told me how miraculous it is that we have pulled together such an incredible show to start of the Jewish New Year, and to show that Jerusalem is alive and well. He told me that his brother arrived today from Manhattan, and the first thing he asked was if they had tickets to Jerusalem ROCKS!.

It got me thinking about miracles, which of course brings me to the clip below from Arrested Development . I couldn't say it better than Speech. I believe in miracles. See you Sunday at Sultan's Pool.

The Nightmare of the Keys

In general I hate keys. They represent all that is problematic in the world. Also, I (and the rest of my family) tend to lose them. I have wondered for some time why keys are still around...why haven't we moved to simple username/password? If we need more "security" could use biometrics. But pieces of metal? That we need to carry around? Come on. That is not even 20th century.

Why am I ruminating on all this? Because we are here visiting the good old US of A, and that means we need to rent a mini-van (remember, we are family of seven). When I even approach a rental car company they start salivating seeing $$ signs. Mini-vans are in short supply, obviously we need one, which in economics means THEY CAN ASK FOR ANYTHING!!! OK, finished venting on that.

Now on to the keys. We rented a mini-van at Newark Airport from    . Big Mistake. But I will skip the hidden fees which did not appear on the internet, will skip the long wait. We received a Kia Sedona. Drove it to the Berkshires, to the town of Otis, where my in-laws have a house. Made great time. Then was shabbat, when we let our car rest. Saturday night, looked for keys to move the car....and could not find them. Anywhere. We turned the house upside down, third degreed my 4 year old son, nothing. No keys. Thus began the Nightmare of the Keys.

Late Saturday night called Roadside Assistance of National. Was put on hold for 20 minutes, which started a tradition with National, they never picked up Roadside Assistance line before 15 minutes hold time. Could not believe it, thank God for speaker phone.

I was told to call back on Sunday, they would try to find locksmith. That I might have a transponder type key, in which case  key would need to be programmed  to the car, which would mean towing the car.  Sunday morning I called  back,  I was promised someone would  call me back  with locksmith info, no one did.  I called again,  remember each  time  waiting  15-20 minutes on hold.  My family is grumbling that we do not have use of the car. 

Finally I am told locksmith cannot be found with the advanced technology needed to program a key. So I will need to be towed to the nearest Kia dealership...I checked and saw there is a dealership in Pitssfield, about 30 minutes from Otis. I assumed that is where they would tow me...

The next day tow truck comes (with many calls in between to confirm, they never called me back). I get in, we start driving. The driver tells me we are going to a dealership in Springfield. He does not know why. Springfield is an hour away. We get there, he drops the car off and leaves, while I go talk to service department of dealership. They have no idea who I am, no one from National spoke to them. AND....THEY DO NOT HAVE KEYS. They will order them, will take 2 days. A lot more calls to National, who finally admit somebody made a mistake. I am stuck in Springfield. Finally I take matters into my own hands, tell the dealership to order new keys, rent a car from Enterprise, and leave. Another day shot.

I returned today to pick up the car...and the very nice woman at  Father & Sons  dealership tells me  is that  they  needed to have the key brought to  PITTSFIELD  to have cut,  and it was  NOT a  transponder key. Nothing to program,  no reason for me to have been towed. Just imagine the inefficiencies  that must exist in National...so many resources expended in error.

The internet and WWW have been operating with simple sign on for over ten years. When will this technology come to cars?????????????????

Lonely Jerusalemite of Faith

Yesterday I participated in the 15th Annual Jerusalem Half Marathon. Why a half? Because neither I nor Jerusalem are ready for a full marathon. As diligent readers of this blog, my main means of transportation is bicycle, but I also enjoy a nice run from time to time. The more one slows down, the more one sees of the world.

On the one hand, the Jerusalem Half Marathon is a wonderful experience, on the hand deeply symptomatic of the critical problems facing Jerusalem, and for that matter the region (which rests it's future and progress on resolution of the Israeli/Palestinian conflict, Jerusalem being the center of that).

I could write a book about just the issues surrounding the marathon, but as this is a blog (not a blook) I will just highlight:

-It's deemed as "Jerusalem" race, yet only goes through West Jerusalem, we did not pass through one non-Jewish neighborhood. For forty years Israeli leadership and public have promoted a united city, yet we time and time again keep the city divided. I am one of the few West Jerusalemites (Jews) who regularly goes to East Jerusalem, for social as well as business visits.

-No publicity before the race itself, or notification to residents of the neighborhoods we would be passing through...which meant huge traffic jams (there were about 1000 participants, I believe) with no explanation. Growing up in NY, I would go every year to cheer on my uncle and tens of thousands of others in the NYC Marathon...which was a festive day, massive publicity beforehand. This is classic Jerusalem Municipality behavior...nice ideas but horrible execution and no sense of marketing.

-As a result of no publicity, often I was literally alone...running the route as if it were a Marathon designed just for me! Unfortunately this a feeling that many of us feel at times, alone in the midst of the center of world. For me it was a momentary feeling, but we need to remember that in the Earthly Jerusalem there are thousands and thousands of real people, who are all alone. In the beginning and end of the race, however, saw what has become an annual community...my longtime friends Ari Ferziger, Nir Barkat (who hopefully will improve the municipal functions when he is Mayor), and many more. And i saw them all at the end...a family reunion after long individual focused experience.

-With no training, I improved on my personal best, and finished the 21 kilometers in 1:57. Not bad. Thank God I ride my bike almost every day...Just goes to show that with determination anything is possible. But the pain in my legs today tells me would not be such a bad idea to train just a little...

Lets pray that someday soon the Jerusalem Half Marathon will become a Full Marathon, traversing from East to West, truly uniting the city, no matter what national flag we run under. And that all of Jerusalem comes out to cheer us in spirit of peace and prosperity. Amen.

Take Off the Costume

Yesterday I had the unique opportunity to timeshift and placeshift in the real world. You see, the holiday of Purim was celebrated in most of Israel yesterday (in Jerusalem celebrated today, commemorating the part in the Purim story wherein fighting continued into the fifteenth day of Adar...a lengthier explanation of "Shushan Purim" can be found here). As a Jerusalemite I was not yet celebrating, yet had reasons (see below) to be traveling outside Jerusalem. Even in Jerusalem there was an "off" feeling, as outsiders came into town dressed in their Purim finery (costumes of all kinds, Purim being the time when we try to be who we are not...a day of opposites).

Jerusalem in general feels like Purim, as we have such a wide variety of communities here, many with a unique style of dress....to say the least. Hasidim of all kinds, Christians from all points of the globe (Russian Orthodox, Greek Orthodox, etc etc), Muslim, and fusion -- every day in Jerusalem feels like a dress-up day, everyone in their own costume (mine usually consisting of jeans and a t-shirt...). On my way to bus station to go to Tel Aviv, I saw a group of people walking, looked like usual Ultra Orthodox folks (men dress in black and white), all of I sudden I realized the man's long black coat had colorful polka dots painted on...what a refreshing sight! A bit of color in an otherwise monochrome lifestyle!

I continued on to my meetings in Tel Aviv, sitting on a crowded bus with soldiers armed for battle (soldiers in Israel are required to carry their guns with them at all times, and tend to travel on buses since they have free passes), tourists, Jerusalemites trying to get ahead of themselves and in Purim costume, and a few like me, working, on our way to Tel Aviv for business meetings. I joined Shimy Constante, CEO of mPortico, in a meeting/presentation to a local Israeli venture fund together with a Silicon Valley fund in Israel for a few days. During the meeting we all put on our "costumes." Shimy as start-up CEO, me as strong supporter, other venture guys with their own versions.

Following the meeting, as soon as we got outside, Shimy asked me -- so, what did you think? Did they like it? etc etc. I told Shimy that it seemed there was interest, but obviously no one took out their checkbooks at the meeting.

And then I realized, if I had more guts, especially in honor of the Purim holiday, I should have done the opposite of what we usually do -- I should have asked everybody to step out of costume, and just say what they were thinking, feeling -- no playing the role of a venture capitalist.

But our costumes are an important part of who we are, and how the game is played.

It would be refreshing, however, just like the colorful polka dots on the black coat, once in awhile to go to one of these meetings and declare "Take Off The Costume" -- give instant feedback, decide on the spot, no games. Yeah, would be refreshing, but probably too much to expect on a regular basis. We need our costumes. They define us, comfort us.

Happy [Jerusalem] Purim!!

We Won...History Can be Changed

Two days ago the Israeli National Planning Commission made a final decision to cancel the planned building in the hills West of Jerusalem, a plan known to many as the Safdie Plan (after the well-known architect Moshe Safdie, who was responsible for the master plan).

This was a classic case of believing in the power of the people to change what seemed to be a hopeless situation...at one point the Prime Minister of Israel (himself a former mayor of Jerusalem), the Mayor, the CEO of the Jerusalem Development Authority, and staff of the Ministry of the Interior all strongly supported the plan...opposing was a ragtag group of "tree-huggers," those of us who believe that nature, green spaces, fresh air, are important values and part of the future of the Jerusalem metropolitan area.

Slowly, slowly, this ragtag group coalesced into a powerful, and the result was a miracle. The current Mayor of Jerusalem, Uri Lupolianski, came out two months ago against the plan, completely reversing his opinion. In the Knesset, the Israeli Parliament, a majority of members from all parties called for the cancellation of the plan. This past week, we saw the results of the petitions, demonstrations, and outcries of painful protest: the vote on the National Planning Commission was 24-3 against the plan.

Believing in the impossible is an important part of start-up life, and living in Jerusalem one needs to re-affirm on a daily basis the  belief in the impossible. Yes, the canceling of the Safdie Plan is a small matter compared to reaching peace agreements, figuring out how to share this city, so on and so on. But it is in our hands to change history.

For now...enjoy the view. I did this morning!

Shabbat Shalom -- Have a wonderful weekend.

My Partner is In China...God Bless Him

Lior Lifshitz, my partner in managing Jerusalem Capital, left for China this morning, with no clear return date, leaving me with deal flow, portfolio, etc. Why I am not upset? Because Lior left as co-leader of a delegation of Israel Flying Aid in search of a 62 year old Israeli woman who has been missing for almost a month. Eda Gershovitz left in March 2006 for  "standard" Israeli trek around the world, focusing on Asia. She checked in by email and phone, but was last heard from a month ago on the Chinese border with Tibet.

I want to focus on two things about what all of this says about life today, specifically for Israelis, but also relevant to many other people[s].

First, the independence a 62 year old Israeli woman feels today, to go trekking around China and Tibet by herself...extremely empowering. Eda Gershovitz immigrated to Israel from Russia over thirty years ago, and raised three children in Israel  (two of whom are in China right now looking for her). At 62, Eda was already a seasoned traveler, having toured Africa and Asia in the past. There is a wanderlust that many Israelis feel, to see the world. Perhaps it comes from living in what many see as the center of the world, under a lot of pressure, that makes us travel so far (a form of escapism)...or perhaps it is because we have such an interest in the world as we are trained to care about the world, not just our neighborhood.

Next, think about my partner Lior. A busy guy, with three children of his own, a wife (celebrating her birthday this week). In his reserve duty Lior serves in a unit responsible for investigating the plight of missing soldiers. Lior and his colleagues make determinations about how someone went missing, and what their physical state was at the time...and are involved in rescue operations. For a month this Summer Lior was almost full time in Lebanon. OK, you say, that I "understand," there was intense fighting. But to just pick and look for a woman he has never met? Eda Gershovitz did not have insurance-- her children turned to the Israeli Foreign Ministry, who in turn, together with Israel Flying Aid, contacted Lior and his army unit. We need volunteers, they said. Lior agreed at once --- which is one of the reasons I chose him to be my partner in Jerusalem Capital.  Lior represents the best of entrepreneurial spirit of Israel, fusing together a sense of personal responsibility with action.

Lior does not speak Chinese, has never been to the village Eda disappeared from, and yet he left this morning, with no fixed return date, to find her -- as a volunteer. Of course it helps that he has a very supportive life partner, Tali, and a business partner, me, that back him up.

May Lior and his team be blessed for their effort, and lets pray together with Eda Gershovitz's family that their search brings good news, or at least news.

With the Best Intentions...

There we were tonight, spread out in multiple locations, different continents, all gathered for a conference call. The players were senior management of US based big company XYZ, management of Jerusalem based start-up ABC, and yours truly, Jacob Ner-David, present as the matchmaker and potential investor. To assemble the people took several weeks of planning, juggling everyone’s schedules, time differences, etc. Big company brought SVPs, VPs, Directors, and team members, 6 in all. Start-up had two, CEO and VP, and me.

To spice up the call, and to enable real time presentation of demonstration of the system and service in question, start-up management suggested using one of the many services that allow multi-casting of presentations (we will not disparage the actual provider, but there are many such companies).

Everyone was gathered, mouse at the ready to click on the link provided and start the session...we all clicked and….nothing. Wouldn’t work. ABC management said the usual: “we have used this 20 times, always worked, everyone log out and back in.” We all did, and still nothing. I took it upon myself to fill in the dead space while ABC management muttered about settings and rebooting. Finally I said guys, its not working, I will email out to everyone the powerpoint you wanted to use, but we won’t be able to see the demonstration in real time.

I emailed it out, but by then ABC management were so flustered that they could barely make their way through it. Finally senior XYZ senior person suggested that we stop, because some had already seen the demo working, and going through powerpoint was not productive use of everyone’s time (which I agreed with).

What to learn from all this?

1. Never rely completely on technological tools to get your point across. There will be errors/network failures – a good CEO needs to be able to paint a picture even just using their voice.
2. If something is not working – move on. Don’t waste time trying to fix it.
3. Conference calls are good, but only for moving forward projects – not so good for real time demonstrations. Need to be prepared to just get out there physically – with all of our virtuality, nothing like seeing it in person.

Business development remains an in-person sport, played right. That of course doesn’t match up with very limited start-up travel budgets, but I believe there is no substitute—sometimes you need to just jump on a plane.

Of course, the true breakthrough will come for all of us when we can just say: “Beam me up Scotty.” And pray that there are no bugs in the system!