Israel Investor Sees Virtual-World Answer for Start-Up Nation

For Israeli investor Erel Margalit, keeping the country’s start-up nation status means delving into the virtual world.

The 49-year-old entrepreneur’s $830 million Jerusalem Venture Partners is the main investor in movie studio Animation Lab. Margalit says the country, with the world’s largest number of start-ups per capita, needs to build on its traditional high- tech industry to develop virtual offerings -- from films and online games to social media and mobile advertising.