Erel N. Margalit, PhD combines venture capital with regional development by creating physical "Startup City" campuses that cluster startups, corporations, academia, and government to revitalize entire regions and underserved communities rather than just backing individual companies. He operates with a "social profit" thesis that measures success not only by financial returns but by using technology clusters and exits to lift cities and diverse populations, positioning this approach as something Silicon Valley can learn from the Israeli model he helped design.

• Deep commitment to developing Israel's periphery, specifically the Galilee and Kiryat Shmona regions, viewing them as central hubs for future innovation rather than just outlying areas. This is illustrated by his enthusiasm for portfolio companies like Copyleaks, which established a significant presence in the north to bring high-tech employment to the area.
• Advocacy for integrating democratic values, pluralism, and equality directly into corporate culture, positing that a thriving creative economy cannot exist without these pillars. He has previously encouraged portfolio companies to sign declarations committing to gender equality and non-discrimination, linking social stability directly to economic potential and credit ratings.
• Focus on bridging the gap between local Israeli action and global markets, often highlighting connections between hubs like Jerusalem or the Galilee and international centers like New York. He frequently frames startup success not just as financial gain, but as a vehicle for Zionism and rebuilding national infrastructure.
• Strong interest in social impact initiatives that run parallel to business activities, particularly those supporting youth education and inclusion. He frequently discusses the "Bakehila" organization and initiatives to help integrate individuals with PTSD into the workforce, emphasizing that innovation must be inclusive of diverse populations.