By Jackie Headapohl, Published in The Detroit Jewish News
Michigan Israel Business Accelerator (MIBA), an economic development organization, recently unveiled “The Elevator” as the first landing zone exclusively for Israeli startups in the U.S. This Israeli coworking community, located in Detroit’s Bricktown neighborhood in the Globe Building, is focused on forging connections between Israeli startups and companies and Michigan enterprises.
The launch of The Elevator signifies a significant step toward introducing a greater number of Israel’s cutting-edge and cost-saving technologies to Michigan. By doing so, it seeks to accelerate Michigan’s economic growth and cultivate its thriving innovation ecosystem.
Michigan stands out as an advantageous choice for Israeli companies due to its ranking among the top 10 regions that offer competitive business opportunities, according to Site Selection magazine. Furthermore, Detroit has garnered international recognition as the leading emerging startup ecosystem worldwide, according to Startup Genome’s research. These prestigious accolades position Michigan as an appealing destination for Israeli companies seeking favorable business prospects and dynamic startup ecosystems.
“I take great pride in being part of Michigan’s vibrant business landscape that serves as a global magnet for innovation,” said Matt Elliott, MIBA board chair. “With this announcement, MIBA is taking a huge leap toward our vision to position Michigan as the premier partner for Israeli innovation in the U.S.”
Scott Hiipakka, CEO of MIBA and a brigadier general in the Michigan Army National Guard, is currently deployed serving as Commander of Joint Task Force Guantanamo, Cuba. “The strategic partnership between Michigan and Israel has created a dynamic environment that fosters innovation, entrepreneurship and mutual prosperity,” he wrote from the field. “The launch of The Elevator truly takes this relationship to the next level, and we look forward to the transformative opportunities it will generate for Israeli startups and Michigan businesses alike.”
Hiipakka will be returning to MIBA later this summer. In his absence, Mark Davidoff, founding board chair of the Michigan Israel Business Accelerator, has been leading the organization.
According to Davidoff, The Elevator’s roots reach back to 2014, when, after returning from leading a mission to Israel, he wrote an essay for Crain’s comparing Detroit to the Jordan River.
“The Jordan River was going through a reclamation process, and my essay compared Detroit post-bankruptcy and the Jordan River in its reclamation,” he said. “The topic was: What happens when something of a biblical nature isn’t taken care of? That article inspired a number of conversations amongst the CEO group in Detroit, and the common theme was, to me, they hadn’t been to Israel and needed to go.”
In 2015, Davidoff led the Michigan CEO Israel Mission with 20 CEOs from across the state. They went to Israel for five days to study the incubator ecosystem of Israel. “That mission led as a catalyst to, in 2018, the formation of the Michigan Israel Business Accelerator, for which I was among the first board members,” Davidoff said.
Today, MIBA has a team of four professionals in Detroit and two in Israel. “We take a consistent flow of leaders from Michigan to Israel,” Davidoff said.
WHAT IS THE ELEVATOR?
“The Elevator is the only soft landing zone exclusively for Israeli startups in the United States. And we’re so proud it’s here in Detroit,” Davidoff said.
The Elevator expands upon MIBA’s existing services that connect Israeli innovators with Michigan partners to foster collaborative and strategic partnerships for mutual benefit. The Elevator’s added offerings include regular networking events that bring together ecosystem partners and facilitate introductions between Israeli partners and Michigan businesses, as well as educational programs focused on market penetration techniques such as sales training and marketing strategies to accelerate expansions.
Members of The Elevator will not only gain access to corporate enablers, experts and preferred resources — such as legal, marketing and accounting — they will also have the opportunity to participate in regularly scheduled strategic events and mixers that align with membership interests and notable conferences held in Metro Detroit.
Membership at The Elevator grants complimentary access to an array of amenities, including dedicated and flexible office space, conference rooms, 360° video conferencing capabilities with an 86-inch display screen, high-speed internet connectivity, high-capacity printing, a convenient kitchenette and a U.S. mailing address with mail delivery service to an assigned locker.
Moreover, The Elevator benefits from an exceptional location with convenient access to various modes of public transportation, including the Q-line, bus routes and major freeways that ensure seamless connectivity for its members. MIBA is fully prepared to assist companies in connecting with housing and parking partners as well.
“Israel is known as Startup Nation and we want to be ‘Scale Up Nation’ for them,” Elliott said. “Our goal at the Michigan Israel Business Accelerator is to drive Michigan’s economy forward, one Israeli connection at a time. For us to make that happen, we have to drive value for our Israeli partners, which we’re going to do in spades here.”
A DRIVER OF MICHIGAN’S ECONOMY
According to Elliott, work on The Elevator began five years ago, and it took help from several community partners, who were on hand when MIBA officially launched the co-working space at an event June 8.
One of those partners was Quentin Messer, CEO of the Michigan Economic Development Corporation.
“‘Make it in Michigan’ is an economic framework that has three critical elements to it: people, place and projects,” he said at the launch. “This is really an exciting opportunity to see people, place and projects come all together in one place.”
According to Bernard Bourgeois, director of Ecosystem Development at the MIBA, Detroit was the ideal place for this “soft landing zone.” It wouldn’t have been possible without the help of Bedrock, which helped MIBA find the ideal location for The Elevator, which will also serve as offices for MIBA.
Eric Smith, vice president of strategy for Bedrock, said, “What’s good for Detroit is good for Bedrock, and what’s good for our cities is also good business. It’s very hard to overstate the potential of The Elevator and how good this can be for the city of Detroit.”
Itai Biran, Consul for Political & Commercial Affairs at the Israel Consulate General to the Midwest, was there for The Elevator’s launch. “This space will undoubtedly serve as a catalyst for Israeli companies, enabling them to rapidly accelerate their growth models in the United States,” he said. “The opening of this space represents a milestone in our efforts to strengthen ties between Israel and Michigan.”
According to Biran, both regions share a common focus on various sectors, including smart mobility, advanced manufacturing, health tech, sustainability tech, food and air tech.
“These areas of expertise provide a strong foundation for collaboration between Israel and Michigan companies,” he said. “The partnership between Israel and Michigan is built on a mutual commitment to technological advancement and economic growth. Israel’s reputation as the Startup Nation and Michigan’s thriving innovation ecosystem create the perfect environment for fostering collaboration and driving progress.”
Three visionary Israeli companies have made their mark as charter members of The Elevator, showcasing their commitment to innovation and growth: GuardKnox, FullPath and SkillReal.
GuardKnox is a premier automotive and defense technology and engineering company. It has grown from its first two business development resources to a fully separate U.S. company, adding a small team of engineers to service its domestic business.
“MIBA is a great resource for Israeli companies in Michigan, and The Elevator will help advance their mission of connecting companies like GuardKnox to important resources and networks.” said Joe Romero, managing director U.S. of GuardKnox. “We anticipate using The Elevator space to further facilitate meetings and discussions with other companies as we find a common neutral ground upon which to trade ideas and collaborate on projects.”
FullPath (formerly AutoLeadStar) is an automotive industry-leading customer data and experience platform. FullPath enables dealerships to cultivate enduring customer relationships by seamlessly integrating disparate data sources and harnessing the potential of this data to curate unparalleled, hyper-personalized experiences for each individual customer.
Centrepolis Accelerator has selected SkillReal’s cutting-edge digital twin alignment technology, which offers augmented reality measurement capabilities on-screen, for their growth program.
Bourgeois shared that early in June, eight more Israeli companies spent a few days visiting The Elevator.
“To see them in this space — using it, connecting with Michigan companies — it was just really rewarding,” he said, adding he expects other Israeli companies to be signing on to The Elevator very soon.
According to Davidoff, “There is no cost for membership/occupancy to Israeli companies as we want to facilitate landing with as few barriers as possible. The cost of The Elevator is part of the annual board-approved operating budget.”
Originally named the Michigan Israel Innovation Center, “it didn’t exactly roll off the tongue,” Davidoff said. “We were trying to think of a name that would mean as much to Israelis as it would to us here in Michigan.
“What could symbolize what we’re trying to do here, which is to lift up Israeli startups so they can reach their highest level? We decided on The Elevator, and MIBA is your elevator operator.”
