It was standing room only at Tel Aviv’s Mad Men-inspired Zou Bisou Bar on Nov. 17. Representatives from more than 150 Israeli tech startups drank wine and beer, munched finger food and jostled to get a business card into the hands of an investment team from Alibaba Holding Group Ltd. Chinese investors are a common sight in Israel these days. Companies like Alibaba and Baidu Inc. are looking for promising innovations that...