Israel: a country too far from Mike Arrington’s house
scobleizer.com
scobleizer.com
I've personally been involved with a few who moved operations from Israel to SV (which is quite common). One recent interesting one is Dapper: http://www.dapper.net/
I was there just before this newfangled internet became a big deal, but just after a lot of high tech companies started moving to the area. There is a lot of technical talent in Israel, they have an incredible technical school- Technion.
Free means free, they cover airfare from NYC or LA and many meals. $250 deposit is required to reserve your spot. Email me if you have any questions.