Professor Efraim Chalamish is an adjunct professor of economic law at NYU (New York University), as well as a writer and media personality focusing on economics, energy, and security. He is also a jazz musician. Chalamish is a senior advisor and the head of the Israel Practice at the internationally renowned Kroll – Risk and Financial Advisory Solution. He spoke with Israel Hayom.

Q: Professor Efraim Chalamish, we have only recently reported on the growing proximity of Saudi Arabia to Iran, as a "goodwill gesture" to China. At the same time, senior officials in Saudi Arabia still do not rule out potential normalization with Israel. This is a highly complex report and takes us into a whole world of alliances, taking sides, and international economic challenges, as well as the extremely delicate fabric of the relationship between Jerusalem and Beijing, and just how the US enters into the middle of all this.

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"I think that these issues are connected with a prominent, global trend that I have identified: instead of choosing sides, states and private companies are seeking to build alliances that suit their needs. The classic example of this in recent weeks is indeed that of Saudi Arabia, as you have mentioned. On the one hand, it is attempting to draw close to Israel via a direct route. On the other hand, it did indeed sign a normalization agreement with Iran.

"At the same time, Saudi Arabia and the US are engaged in a somewhat volatile relationship. And yet, the Americans are engaged in a constant effort to draw nearer to Saudi Arabia because of energy issues. The recent visit of the US Secretary of State to Saudi Arabia is a prime example of this.

"They are also highly aware that by holding Riyadh closer to their chest they will be more successful in moderating various negative elements across the Middle East. This teaches us that in both international and economic relations, and also the development of both private and public companies, the key word is multiple and varied alliances. I think that Israel too understands this, of course, and thus several years ago, Prime Minister Benjamin Netanyahu's government decided to foster closer ties with China, which reached a peak in 2018 – 2019."

Q: But then we sought to take a timeout. Why?

"The decision to take a timeout resulted from two key considerations. One consideration was extremely considerable pressure on the part of the US on Israeli companies not to raise funds from Chinese institutions or to enable them to win tenders, as they believed that this would expose Israel to China's influence in the realm of national security. The second issue is that in Israel, people had become accustomed to the American DNA in investments, and now all of a sudden they came to realize that with China things work differently in terms of schedules and fund transfers, for example. This attempt, coupled with US pressure, led to a dramatic drop in Chinese investments in Israel."

Q: But, of course, this doesn't mean that Israelis stopped working with China. How do you foresee this relationship developing in the coming years?

"I believe that Israelis, both at the government and business levels, will need to be much more sensitive to how they manage this tension between the US and China. On numerous occasions, we hear people use the term 'trade wars'. A good way of contending with it is to focus on those sectors that are not perceived by the US to pose a threat to its national security, such as agriculture and the environment. By adopting this approach, it should be possible to sell similar technologies to both countries, and there are Israeli companies that are doing quite a good job of this, in precisely those areas that do not involve a clash.

"It is important to remember that China has attained an achievement that no other country has ever done in history, by lifting hundreds of millions of people out of poverty. It did so, among others, by enabling access to water sources, energy, electricity, and basic technologies. These are all spheres in which Israel excels and so there is no good reason why this relationship should not continue to grow. By the way, Israel is not the only country facing this tension in balancing its relations between the US and China, or tension between other countries. Many countries successfully walk such a tightrope."

Q: Over the course of years, Israel too will be forced to continue to play this delicate game vis a vis these two global superpowers

"I totally agree. There is clearly no substitute, in terms of the security, diplomatic and economic ties, for the unbreakable bond with the US. On the other hand, Israel cannot afford to simply give up its ties with China, and the enormous economic treasure trove on which it stands. It ties in with the Chinese influence on continents of importance to Israel such as Africa, America, and parts of Asia. Israel does not wish to be perceived as a threat by China in those countries in which it is involved in economic activity. Beyond that, China, as is well known, is the second largest economy in the world."

Q: That is interesting, as for years now people have been saying that China is about to become the largest economy in the world. For the time being, that is still not the case

"There is a term called 'Peak China'. This term is based on the question of when China will actually reach its peak, as on every occasion it was extremely close to overtaking the US, turnarounds occurred preventing it from conquering the peak. It depends, among others, on the size of the population, productivi,ty and prices.

"That reminds us of another theory from a few years ago, according to which the world has exhausted its oil production capacity. This is of course far from being an accurate view of the situation, for the moment, as every month more and more oil and natural gas production sites are discovered in various locations. So, both in relation to China and on the issue of exhausting energy resources – there are theoreticians who believe that we will never actually reach the point where oil production ends, precisely as we shall never reach a situation in which China conquers the peak."

McDonald's modifications

Q: How, for example, does the existing tension between the US and China also have an impact on the trade and economy in the Middle East and specifically on us, here in Israel?

"There are numerous examples of this. One of them is that of the countries that raised funds from the US and then saw that this is too complicated, so they decided to raise funds from China, where the process is much simpler for them. In Israel, this question emerges mainly in the context of raising capital for startups. In recent years, the US has adopted legislation to make it more difficult for Chinese companies to issue in the US or to sell US technologies to Chinese companies.

"If I were to further underscore the connection to Israel, it is possible that companies raising funds from blocs associated with China might well encounter difficulties when issuing stocks later on in the US or to be sold to US institutions due to the new legislation. Thus, this also has an impact on the ability of Israeli startups and tech companies from Israel, especially those that are currently facing difficulties and are looking to more creative locations for raising funds – such as India and China, for example."

Q: India is a whole issue in itself. The relations between India and Israel have grown stronger in recent years

"That's true. And from an internal-Asian perspective, India competes with China economically. Due to the concern over too much Chinese influence in Israel, in recent years Israel has been moving close to India, more and more agreements are being signed, and I expect the relationship between Israel and India to continue to grow stronger, especially in view of this fact. Over the course of time, Israel's activity with India might come at the expense of its exposure to China. Already today, we can identify a significant, even exponential increase, in the number of delegations coming from India, alongside more and more Israeli companies placing their focus on what is after all the largest democracy in the world. The Government of Israel too has been trying and indeed with considerable success to generate joint ventures with economic and security entities in India."

Q: The cooperation with India is another creative means used by tech companies for fundraising. What additional challenges do you expect to see among companies operating on the international market?

"There are two central trends, challenges if you like, that I have identified. One is the shift from a global perception to a local perception. Each product or human capital must engage in local modifications when it moves to another country or market."

Q: Ostensibly, this is not something new

"Correct, even a company such as McDonald's has to implement modifications to the type of food or the local taste. But I wish to say something else here – when international companies implement a strategy elsewhere, they cannot simply allow themselves to engage in a form of "cut and paste" activity. Central reasons for this are the various approaches to the supply chain and the technological separation between the superpowers. Chinese vehicle manufacturers, for example, currently tend to base their operations more on local components and much less on international logistics.

"This trend is especially vital for the Israeli market. Israeli companies are required to invest much more in these local modifications. An excellent example of this is the shift of many Israeli companies to a local management model instead of remote control from Israel. This also serves to bolster trust with the local government and helps to contend with national security challenges."

 And what is the other trend?

"The other trend is the place occupied by national security and the central position of the security outlook in almost every economic decision made. This is manifested in both public policy and also in private companies that are trying to sell a product or a service in a foreign market. In the past, the issue of national security was relevant only to security companies that tried, for example, to sell sensitive technologies. Today, this is relevant to almost all sectors and products."

But why is this the case?

"As countries perceive many sectors to be critical for their national security. Take, for example, the food and pharmaceutical industries. If in the past, the products manufactured by these sectors were more or less considered to be routine items, then the war in Ukraine – and all the more so following the COVID-19 pandemic – have turned these products, like food and water, into those that involve aspects of national security."

Responding rather than initiating

Let's talk about the current domestic situation in Israel. We have not long completed a military operation here, and the next operation or war is only a matter of time. At the same time, it appears that the warnings issued by the economists regarding the judicial reform are hovering like a gray cloud above Israel's economic growth. How is it even possible to raise funds in such an environment?

"I believe that our thinking here is defensive. In other words, thinking that the fundamental questions are 'How do changes impact us', 'What will the judicial reform do' and 'Why is there an economic downturn'. On the other hand, there is a lack of sufficient investment of time, energy, and communication to understand what needs to be done here during good periods in order to increase investment in Israel.

"We have become so infatuated with the term 'Startup Nation', that we assume that everything will continue to work on its own. Although there are organizations in Israel such as Start-Up Nation Central and the Israel Innovation Authority, which really do a tremendous job – but on the whole, on many occasions, emphasis is placed on what the state can do to avoid causing damage, and people tend to lose sight of the real focus of what needs to be built.

"I recently attended a certain forum, and one of the participants there said in fun: 'Absolutely not, on this matter, I really wish to give credit to the government.' And then he added: 'Can you believe it, even I had something positive to say about the government.' As far as that individual is concerned, somebody from the private sector, the state basically does nothing more than interfere and impede. And I would like to say that this is a matter of perception and it is high time that we do something to change that perception. As I see it, the state does not interfere with the private sector. One of the trends that I have noted is that in most countries the state itself is seen as a key tool for building up the private sector, and certainly not as an entity that tampers and hampers."

 In other words, it is a catalyst for business. And in Israel, this is not the case. But why is that so?

"On many occasions, you can hear high-tech people adopting an approach of 'As long as the state does not interfere.' But this is not true of the world we live in today. Many countries are racing ahead because they build new frameworks and work hand in glove with the business sector.

"On this matter, it is worthwhile being aware of an important example in the field of government capital funding. In other words, how is capital managed by the government, capital that is essentially owned by the government and invested in the private sector, in a certain country, or around the world? Countries such as Ghana, Nigeria, Saudi Arabia, and Qatar have substantial revenues from oil and gas, and they then take these revenues from the energy sector and create sovereign wealth funds that invest globally. This then obviously provides those countries with a considerable financial return in the form of innovation and growth investments. This is essentially a growth engine that increases a country's revenues."

 I don't want to ask how many such funds exist in Israel.

"In Israel, there is currently only one central fund of this type, which was established after the discovery of the natural gas here. In international terms, it is still considered to be rather small. In Singapore, a country from which Israel has learned a great deal, and vice versa, there are government funds that invest in education, security, and construction. The existence of such funds in a country helps to shore up its industry. The UAE is another example that is of particular interest to Israel's attention. Many of the companies and the wealth funds there are government-owned, including those that have recently invested in Israel. The private sector in Saudi Arabia, for example, is extremely small.

"To a certain extent, such funds are a throwback to the beginning of the high-tech industry, way back in the 90s, when venture capital funds such as the Yozma Group gave the initial boost to the Israeli high-tech industry. Perhaps the time has come for us to recall the fruits obtained by these former, historical investments, and to implement them accordingly so that our landing in a world that is advancing and changing at the speed of light will be that much softer."

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In the midst of the coronavirus pandemic in April, eBay noted a 40 percent spike in the number of Israeli sellers compared to the previous month and a 46 percent increase in sales of products sold by Israelis, eBay told the Israeli business daily Globes.

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Already trending back to 2017, Israel was the world's second-largest online commerce buyer per capita, only behind China, according to eBay. Israelis bought products on eBay every two seconds on average and sold items every three seconds in 2017, according to the company.

"It is no secret that e-commerce is growing worldwide and that every business owner – big or small – understands that you cannot run a business without an online presence," says Mordechai Arba, the 29-year-old founder and CEO of Ecomhunt.

"Israelis are definitely important players in the e-commerce world, but mostly as solo sellers," says Arba. His website gets more than half a million visitors per month and hundreds of thousands of people from around the world have used his website to grow their own stores.

Arba notes that "most of the big high-tech companies focus on payment solutions, sales analytics, and so on, which have a connection to the e-commerce world but more as behind-the-scenes players."

He predicts that a growing number of Israeli e-commerce companies will become major players in an industry that continues to trend well.

Along those lines, while the coronavirus has raged, many offline businesses have closed up shop, while technology in general and e-commerce companies in particular, led by the worldwide giant Amazon, have flourished. Amazon's stock price has jumped 73 percent so far this year.

The Israeli freelance-services platform Fiverr has seen its share price jump by more than 200 percent since its IPO less than a year ago and raised at least $120 million in its secondary offering on the New York Stock Exchange, according to Globes.

Companies in high-tech and other sectors that can easily function with employees working remotely have been able to continue working at almost normal capacity during the crisis.

"The world was already moving online, and this pandemic simply fast-forwarded it," says Arba.

The company provides trending products and other training to drop-shippers so that they can have success with their stores. Drop-shipping is a popular online retail method where stores can sell products by having the seller send them directly to the buyer without requiring keeping inventory. In this model, the e-commerce outlet serves marketing and sales roles for the supplier, many of them based in China.

It is these online sellers who are flocking to Ecomhunt to find winning products to sell in their stores. The website is about to release a new online course for anyone who wants to start their own online store; it also has a blog and YouTube channel.

Arba, who moved to Israel from France as a child, worked as a web designer and developer before he started online stores using the drop-shipping and print-on-demand models. After some success, he started Ecomhunt, which eventually took off.

"After failed attempts, I finally figured out how to sell online and saw that there was a need to help people quickly figure out how to succeed," he says, insisting that "now is the best time to start selling online."

'More custom-made and personalized products'

David Popovich, an e-commerce specialist for North Africa and the Middle East for Colgate-Palmolive, started his e-commerce journey in 2016 after working as a marketing manager for 17 years in major companies such as SodaStream, Pelephone, and Club Med.

Popovich recognized a trend in 2016 towards e-commerce, and in particular, private brands – smaller products launched through platforms such as Shopify and WooCommerce, and then use social media to create a community around them. The logistical methods revolve around drop-shipping or bulk orders from China to warehouses in the United States.

Popovich targeted his Wolvestuff.com brand at a specific audience interested in wolves and Native American culture; it grew fast, bringing it seven-figure sales in the first year. The Petah Tikva resident and father of three recently sold the company.

Like Arba, he sees e-commerce booming since the start of the coronavirus outbreak (and even before), which has led to many new players moving their businesses online.

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Popovich says that "we will see more and more consumers buying online. For example, those over 55 who typically buy less online have started to buy more since the pandemic, and there has been growth in other demographic categories as well."

While he still foretells opportunities in e-commerce for new companies, he thinks that the focus may move to more custom-made and personalized products that "cannot be found in local physical stores such as Walmart."

"All the processes occurring worldwide are also happening in Israel," he says. "Israelis love to buy online, and they want to be able to receive their orders quickly."

He adds that "e-commerce in Israel is still young, and there is much to do. If you have a great product and ship fast, you can target a specific audience with a product that will solve a problem or have an exciting feature."

Already during the pandemic, Popovich has created a new brand in two months that sells knitted dolls and figurines at bubot.co.il and is selling in the KSP computer store branches in Israel.

He doesn't think some great secret is involved in his success, declaring that "if I can do it, anyone can!"

Reprinted with permission from JNS.org.

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OurCrowd said the former attorney for Donald Trump will be acting as a partner responsible for "building ties with the Middle East region."

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Greenblatt was the architect of Trump's recently unveiled Mideast plan that largely favored Israel. He worked as the White House's special representative for international negotiations until resigning in October 2019.

Greenblatt told The Associated Press his focus would be on cultivating investment from Saudi Arabia, the United Arab Emirates, Qatar and Bahrain – all countries that have developed behind-the-scenes relations with Israel in recent years, and who were to be key investors in the economic development side of the Trump administration's Mideast plan.

"I'm hoping to be able to utilize the platform that I have and connect Israel and the Gulf in a way to continue the momentum that we've seen over the last three years," Greenblatt said. "They work together on security to a degree. And, you know, there's enough commerce going on in a small way that leads me to believe we're going to see a bigger impact."

OurCrowd is an Israeli platform that allows affluent individuals to invest smaller sums in start-ups that are pooled together with other smaller investors, akin to crowdfunding for venture capital. Since its launch in 2013, the company says it has raised $1.4 billion in assets for 200 companies and 20 funds, most of them Israeli.

OurCrowd's founder Jon Medved said in a statement that he expects Greenblatt's addition "to open up a new world of opportunities for our growing portfolio of 200+ companies and 20 funds."

Greenblatt spoke at OurCrowd's annual conference in Jerusalem earlier this month. OurCrowd said its February 2020 summit included participants from around the Arab world.

Greenblatt said he would be based out of New York, but his job "will undoubtedly involve a great deal of travel to the region."

Trump unveiled his long-awaited "deal of the century" last month in Washington. It sided with Israel on most of the conflict's main sticking points, and the Palestinians rejected it outright.

The plan grants Israel sovereignty over large parts of the West Bank, and falls far short of the Palestinian dream of an independent state. Instead, it calls for giving them limited autonomy over disjointed stretches of land, and only if they meet a stringent set of demands.

Greenblatt said that peace between Israel and the Palestinians and the broader Arab world "have always gone hand-in-hand, but they're not necessarily always going to go hand in hand."

"If the Palestinians don't engage on President Trump's peace vision, I still think we're going to see movement between Israel and the region," he said.

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As a result, it will become the first-ever Israeli team to compete in the Tour de France, the world's third most-watched sporting event after the quadrennial Summer Olympic Games and the soccer World Cup, showcasing Israeli innovation to billions of television viewers.

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Participation in the Tour de France represents significant progress made by ICA in five years.

The 2017 season was the team's first in the second-tier Pro Continental ranks. In 2018, the team raced in its first Grand Tour – the historic Giro d'Italia, which started in Jerusalem. ICA raced again in the Giro d'Italia in 2019. This same season, the team stepped up its racing performance and recorded 29 wins.

"Israel Start-Up Nation" carries 30 riders from 16 nationalities. The team will include four Israeli riders: Itamar Einhorn, Omer Goldstein, Guy Niv and Guy Sagiv. In order to be challenged on the World Tour, it has also signed some of the sport's most experienced riders, including Andre Greipel, Dan Martin, and Dani Navarro.

The team is owned by Israeli-Canadian philanthropist Sylvan Adams and Israeli businessman Ron Baron. Taking a minority interest this year is Kevin Lam, a Canadian, via his company, Reinvent.com.

"The dream of competing in the Tour de France, almost unthinkable when we launched the team, is coming true: a professional team with world-class Israeli riders alongside the finest international talents, racing with pride in one of the world's most prestigious sporting events," said Adams.

"Around 3.5 billion viewers in hundreds of countries will see the Israeli flag and hear the message that this is a country bringing unrivaled innovation to the world. By partnering with Start-Up Nation Central, we are showcasing the Israeli-tech ecosystem on a global stage, sending a clear message that this is a country with so much to offer," he added. "I have no doubt that cutting-edge Israeli technology will give our team a competitive advantage as we race against the very best in world cycling."

Professor Eugene Kandel, CEO of SNC, noted that with a population of about 9 million people, Israel has the most startups and highest venture investment per capita in the world. "This is a potential force multiplier that the Israel Cycling Academy can tap into," he said.

ICA was founded in December 2014 in Jerusalem as Israel's first professional cycling team with a vision to help young cyclists achieve the highest level of the sport. Riders also act as the nation's "ambassadors," demonstrating a vision of peace through athletics.

Riders will continue to serve as Peres Center for Peace and Innovation "Peace Ambassadors," a title they were bestowed in 2018. The center's logo will appear on uniforms to help spread a message of coexistence.

Reprinted with permission from JNS.org.

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Based on press releases from Israeli companies that have completed financing rounds, more than $1 billion was raised in September alone.

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However, the true figure is likely even higher, as some companies do not reveal investment data, according to the report.

Israeli tech companies raised $650 million in July and $350 million in August, according to the IVC Research Center.

In September, credit company Fundbox raised $326 million, fintech firm Tipalti raised $76 million and open security platform Snyk raised $70 million. In addition, drone defense company D-Fend raised $28 million, and 3D-printing company Xjet raised $45 million.

Reprinted with permission from JNS.org.

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The new funds, which double the amount raised to date, will be used to fuel global growth and further innovate its cloud-based endpoint protection platform, Cybereason said.

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The company made headlines in June when it uncovered what it called the largest nation-state cyber-espionage attack on multiple telecom companies.

"The $200 million investment is a big step towards taking Cybereason to IPO," CEO Lior Div told Reuters, saying a two-year timeline was reasonable.

Cybereason said it plans to increase investment in research and development and will also examine acquisition opportunities.

Softbank has invested previously in the company, along with venture capital firm CRV, Spark Capital and Lockheed Martin.

The company did not disclose a valuation for the funding round, but in an interview with Israel's Globes financial newspaper in February, Div said that they turned down an acquisition offer from an international buyer for more than $1 billion.

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The educational seminar marks the first delegation under the auspices of a Memorandum of Understanding between the U.S. Conference of Mayors and AJC, the highlight of which is an annual mayors' delegation to Israel.

The delegation is chaired by Los Angeles Mayor Eric Garcetti.

The seminar is intended to provide these policymakers with a firsthand understanding of Israel, dubbed the "Startup Nation" for its economic, technological and social innovation and entrepreneurship. The mayors will learn about Israel's democracy, diverse society and regional challenges.

They will meet with political and social figures, including President Reuven Rivlin, U.S. Ambassador to Israel David Friedman, high-ranking government officials, leaders of Israel's minority communities, and Jewish and Arab civil society leaders.

Additionally, the mayors will meet with their Israeli counterparts to discuss best practices for their home communities on smart city development, economic growth technology start-ups, urban revitalization and city administration.

The delegation will also observe how Israel balances the preservation of its heritage with modern municipal management and the provision of social services.

"Los Angeles and Israel share so much – vibrant cultures, beautiful landscapes, diverse communities, ties of family and friends, our experiences as dreamers, and our common belief in democracy," said Garcetti.

"Our delegation is showing how cities lead on the world stage, how mayors get things done and how urban centers can tackle everything from innovation and climate change to immigration and economic growth."

"AJC has worked closely with mayors and municipal leaders for decades on issues of mutual concern," said Melanie Maron Pell, AJC Managing Director of Regional Offices, who is accompanying the delegation.

"The mayors will learn a great deal about hi-tech and economic development, immigration absorption, diversity, and emergency services that will assist them in their governance of their respective cities."

Finally, the delegation will meet with Palestinian civic and business leaders in the Palestinian Authority. Several sessions dealing with Israel's strategic environment, diversity and coexistence, and interreligious cooperation are also on the agenda.

This article is reprinted with permission from JNS.org.

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The spacecraft lost communication with ground control during its final descent. Moments later, the mission was declared a failure.

"We definitely crashed on the surface of the moon," said Opher Doron of Israel Aerospace Industries.

He said the spacecraft's engine turned off shortly before landing, and scientists were still trying to figure out the cause. The spacecraft, called Beresheet, was in pieces scattered at the landing site, he said.

Doron nonetheless called the mission an "amazing success," for reaching the moon and coming so close to landing successfully.

"It is by far the smallest, cheapest spacecraft ever to get to the moon," he said. Beresheet was about the size of a washing machine.

The mishap occurred in front of a packed audience that included Prime Minister Benjamin Netanyahu and was broadcast live on national television.

"We will try again," Netanyahu said. "We reached the moon, but we want to land more comfortably, and that is for the next time."

It had been hoped that the small robotic spacecraft, built by the non-profit SpaceIL and state-owned Israel Aerospace Industries, would match a feat that has been achieved only by U.S., Russia and China.

The failure was a disappointing ending to a 6.5-million-kilometer (4-million-mile) lunar voyage, almost unprecedented in length, which was designed to conserve fuel and reduce price. The spacecraft hitched a ride on a SpaceX rocket launched from Florida in February.

For the past two months, Beresheet, which means "Genesis" or "In the Beginning," traveled around the Earth several times before entering lunar orbit.

Around 20 minutes before the scheduled landing, engine firings slowed Beresheet's descent. Engineers watched in silence as the craft, its movements streamed live on dozens of screens, glided toward a free-fall.

But then the screens showed the engine misfiring, and the velocity surging as it headed toward the lunar surface. Radio signals from the spacecraft abruptly cut off.

Standing before darkened computer screens, controllers declared the mission a failure. The craft crashed near the historic Apollo landing sites.

President Reuven Rivlin hosted dozens of youngsters at his official residence, one of several celebrations scheduled across the country. The children, some wearing white and blue spacesuits, appeared confused as the crash unfolded.

"We are full of admiration for the wonderful people who brought the spacecraft to the moon," Rivlin said. "True, not as we had hoped, but we will succeed in the end."

Beresheet carried a small laser retroreflector from NASA intended to measure magnetic fields and provide insight on the moon's iron core. It also had a time capsule that included a Bible, Israeli cultural symbols and a picture of famed Israeli astronaut Ilan Ramon, who died in the crash of the U.S. space shuttle Columbia in 2003.

The head of NASA, Jim Bridenstine, said he regretted the mission didn't succeed, but "I have no doubt that Israel and SpaceIL will continue to explore and I look forward to celebrating their future achievements."

The Google Lunar X Prize Competition, which offered $20 million for the first privately funded venture to make it to the moon, is what first drove SpaceIL to get Beresheet off the ground.

Beresheet made the final cut, but after several deadline extensions, the competition ended last year without a winner.

SpaceIL pressed on with its dream, convinced the mission would help inspire Israel's next generation to study science and engineering.

The project – which cost around 100 million dollars – was financed largely by philanthropists Dr. Miriam and Sheldon Adelson together with SpaceIL President Morris Kahn, as well as other donors from around the world.

The XPrize Foundation congratulated the SpaceIL team despite the failed landing.

"We're extraordinarily proud they made it this far," said Peter Diamandis, XPrize founder.

Spacecraft crash more on other planets than they do on the moon, but the moon has had seen failed missions previously, said American University professor Howard McCurdy, who has written several books about space.

In the 1960s, before the Apollo lunar landings, NASA sent seven unmanned Surveyor flights to the moon and two failed, he said.

"What makes it hard is the conditions – the geological and atmospheric conditions are different on the moon and the planets than they are on Earth," McCurdy said. "It makes it really hard to test" the spacecraft's landing back on Earth.

Phil Larson of the University of Colorado, who was a space adviser in the Obama White House, said the Israeli effort underlines that "space is still extremely hard, and landing human-made objects on other worlds is an utmost challenge."

But, he added, "While it failed to land successfully, overall it was a path-breaking and innovative project."

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