Israel is capable of conducting bleeding edge science in many fields. Their results are not published or reported on at the rate and level that would be justified.
You have most certainly come across and used things that has an Israeli origin without knowing.
One product, that sadly Google bought for a huge amount of money, is Waze, developed by Israelis.
In this globalised world where unique competence is hard to find, companies that want to survive the coming years have to allow “remote”. Not every one want to live in SV. VCs will have to adapt or loose.