Israel's defense technology sector is experiencing unprecedented interest in the United States, driven by recent technological achievements and strong support from investors and government agencies. A panel of legal and financial experts recently discussed the strategic opportunities and risks for Israeli defense-tech companies expanding into the US market, emphasizing the importance of careful planning, corporate structuring, and compliance with both US and Israeli regulations.

Panelists highlighted the need for Israeli companies to establish independent operations in the US rather than relying on intermediaries, which can pose risks to intellectual property and future capital raising. They also addressed complex regulatory issues, including the extraterritorial reach of Israeli defense export laws and the involvement of the Israel Innovation Authority in technology transfers.

The discussion revealed a shift in banking practices, with US banks now engaging with Israeli companies at earlier stages, often before incorporation is complete. This change is driven by the preferences of American investors and the need for efficient operational structures, leading to more Israeli high-tech firms being incorporated as US entities. Experts advised that thorough legal and financial planning is essential to navigate the evolving landscape and avoid costly surprises.