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An American venture capitalist says now is the time to bet big on Israel despite the country facing a multi-front war against Iran-backed terrorists in Gaza and Lebanon.

Aaron Kaplowitz, who founded 1948 Ventures only days after the deadly Oct. 7 Hamas terror attacks, invests in Israeli early-stage dual-use companies, firms that create technologies with both defense and civilian applications. 

When youre forced to find life-saving solutions in real-time, the battlefield becomes the ultimate sandbox for innovation, said Kaplowitz, who previously ran a state incentives program focused on attracting international companies to New York.

Kaplowitz’s faith in Israel comes as some tech entrepreneurs and investors in the so-called startup nation considered relocating to America as funding dried up in the wake of the massacre, as The Post previously reported. Others who previously made trips to Israels high-tech region known as Silicon Wadi canceled visits, sources said.

The best entrepreneurs arent admitting it to many people but theyre contemplating leaving, one gloomy venture capitalist told The Post just two weeks after the attacks.

Kaplowitz, however, pointed to the recent success of the US-funded and Israeli-developed Iron Dome, the missile defense system embedded with dual-use technology, as one of among many validations of his decision to plow money into Israeli companies at a time when most have backed off.

The Iron Dome worked to near-perfection in shooting down 99% of the roughly 300 missiles and drones fired at Israel by Iran on April 13.

The same predictive tech that determines if and when to fire interceptors at incoming enemy missiles is being used today to predict wildfires in Oregon, reduce energy costs in low-income California neighborhoods, and prevent power outages across New York, said Kaplowitz,  who has been involved in early-stage investments since 2015. 

Many of these companies will go on to save American lives, safeguard critical infrastructure, and create local jobs. 

Israel can sorely use the infusion of cash. The countrys economy has been battered by the war with the GDP tanking 19.4% in the fourth quarter of 2023.

Israels vibrant tech sector makes up nearly 20% of that figure. There are more VC firms per capita in Israel than anywhere in the world and most deals to invest in Israeli startups include US based investors, according to PitchBook.

The nation also has a track record of rebounding quickly after a conflict. 

Following Israels 2014 war in Gaza, its economy grew by 4% double the OECD average. And after its war with Hezbollah in 2006, the Jewish state saw a significant uptick in outside investment, some of which helped seed several game-changing companies. 

“I have great faith in the power of the Israeli startup, and I foresee a ‘startup boom,’ Avi Hasson, CEO of Start-Up Nation Central, said earlier this month at a conference in Tel Aviv. 

Kaplowitz said he quickly understood the need to inject capital into the Israeli startup ecosystem, which he referred to as the beating heart of Israels economy, after visiting the still-smoldering southern towns and kibbutzes on Oct. 18.

His other company the United States-Israel Business Alliance, an organization that specializes in bringing governors to Israel had arranged Gov. Hochuls solidarity mission to the region.

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Especially in the early days of the war, Israels economy was suffering, he said. In an instant, it felt like the entire hi-tech workforce put their out-of-office notifications on, closed their computers, and raced to the frontlines to defend their communities.

Seizing the opportunity to invest now in battle-tested technology at depressed valuations is one of the primary reasons Kaplowitz said he made the decision to launch Miami-based 1948 Ventures a nod to the year the state of Israel was established. 

After making two initial investments, 1948 Ventures is now in the process of raising $10 million to invest in a dozen additional companies that have undergone thorough due diligence. 

Kaplowitz claimed that each company his VC is targeting has the potential to be a game-changer in both the defense and commercial markets. 

Kaplowitz said he began researching the underlying vulnerabilities that Hamas had exploited by sending drones to drop grenades on the Israeli armys observation and communication systems on Oct. 7, allowing thousands of Gazan terrorists and civilians to storm across the border undeterred. 

He sensed that this catastrophic security failure opened the door to a more effective perimeter protection solution and decided that 1948s first investment would be in a startup that uses a disruptive software to detect wireless signals. 

Today, the IDF has integrated the companys technology to detect, classify and geolocate drones. 

I believe that on the other side of this punishing, existential war, Israel will emerge as the world leader in defense technologies for decades to come, he said.

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Business

Inflation jumps to 3.6% on fuel and food price pressures

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Inflation jumps to 3.6% on fuel and food price pressures

The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.

The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.

That was up from the 3.4% rate seen the previous month. Economists had expected no change.

Money latest: What do inflation figures mean for rate cut prospects?

ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.

“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”

A key driver of food inflation has been meat prices.

More from Money

Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.

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Beef has seen the biggest percentage increase in meat costs. Pic: PA

High global demand alongside raised production costs have been blamed.

But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.

“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”

It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.

Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”

Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.

“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”

The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.

Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.

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Is the cost of living crisis over?

Most are still reeling from the effects of high energy bills.

The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.

Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.

The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.

The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.

That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.

Read more from Sky News:
Chancellor considering ‘changes’ to ISAs
Most important part of Reeves’s speech was what wasn’t said
HMRC doesn’t know how many billionaires pay tax in the UK

Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.

“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.

“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”

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Politics

Who will take the fall for the Afghan cover-up?

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Who will take the fall for the Afghan cover-up?

👉Listen to Politics at Sam and Anne’s on your podcast app👈 

Now details of the enormous accidental data breach by a British soldier that put thousands of Afghans’ lives at risk can be discussed publicly – Sam and Anne try to address some of the biggest questions on this episode.

They include:

Why did the government break the glass on using a superinjunction?

Has anyone been sacked?

Why did the Labour government keep the superinjunction in place for so long?

There’s still a bit of time to go over Rachel Reeves’ Mansion House speech. Did it reassure financiers and investors?

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World

‘My family is finished’: Afghan man in UK military data breach says he feels betrayed

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'My family is finished': Afghan man in UK military data breach says he feels betrayed

An Afghan man who worked for the British military has told Sky News he feels betrayed and has “completely lost (his) mind” after his identity was part of a massive data breach.

He told The World with Yalda Hakim about the moment he discovered he was among thousands of Afghans whose personal details were revealed, putting him at risk of reprisals from the Taliban.

The man, who spoke anonymously to Sky News from Afghanistan, says he worked with British forces for more than 10 years.

But now, he regrets working alongside those troops, who were first deployed to Afghanistan in 2001.

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Afghans being relocated after data breach

“I have done everything for the British forces … I regret that – why (did) I put my family in danger because of that? Is this is justice?

“We work for them, for [the] British, we help them. So now we are left behind, right now. And from today, I don’t know about my future.”

He described receiving an email warning him that his details had been revealed.

He said: “When I saw this one story… I completely lost my mind. I just thought… about my future… my family’s.

“I’ve got two kids. All my family are… in danger. Right now… I’m just completely lost.”

👉 Listen to Sky News Daily on your podcast app 👈

The mistake by the Ministry of Defence in early 2022 ranks among the worst security breaches in modern British history because of the cost and risk posed to the lives of thousands of Afghans.

On Tuesday, a court order – preventing the media reporting details of a secret relocation programme – was lifted.

Read more from Sky News:
Minister defends handling of breach
The struggle for equality in Afghanistan
Afghan women throw babies to troops

British soldiers wait to be transported to a base in the provincial capital Lashkar Gar in Camp Bastion, Helmand, February 5, 2010. REUTERS/Baris Atayman (AFGHANISTAN - Tags: MILITARY POLITICS CONFLICT)
Image:
Reuters file pic

Defence Secretary John Healey said about 6,900 Afghans and their family members have been relocated or were on their way to the UK under the previously secret scheme.

He said no one else from Afghanistan would be offered asylum, after a government review found little evidence of intent from the Taliban to seek retribution.

But the anonymous Afghan man who spoke to Sky News disputed this. He claimed the Taliban, who returned to power in 2021, were actively seeking people who worked with British forces.

“My family is finished,” he said. “I request… kindly request from the British government… the King… please evacuate us.

“Maybe tomorrow we will not be anymore. Please, please help us.”

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