20 June 2007
This Article was published in the Israel Venture Capital & Private Equity Journal (IVCJ)
Conventional wisdom, blindly supported by many U.S. and some Israel venture capital funds, holds that it is preferable to incorporate "Israeli" companies in Delaware, not Israel. In particular, we are told that exits from Delaware corporations are easier, and that Delaware corporations attract more investors and higher valuations. Time has come to challenge the conventional wisdom.