Israel

Tel Aviv #6

MEMBERS:
Tel Aviv Global

It is well understood, even by the Finance Ministry, that the high-tech industry in Israel holds the key to pulling us out of the economic crisis following the coronavirus pandemic.

Aharon Aharon
CEO at IIA

Ecosystem by the Numbers

EARLY-STAGE FUNDING
$3 b
GLOBAL AVG.
$687 m
ECOSYSTEM VALUE
$47 b
GLOBAL AVG.
$28.6 bn
MEDIAN SEED ROUND
$1400 k
GLOBAL AVG.
$671 k
MEDIAN SERIES A ROUND
$5.7 m
GLOBAL AVG.
$4.7 m
SOFT. ENGINEER SALARY
$72 k
GLOBAL AVG.
$46 k

AI, Big Data & Analytics

Israel ranks third in the number of AI startups globally. In March 2018, Google set up here its first startup accelerator focused on artificial intelligence and machine learning outside of the U.S. Logz.io, an open source analytics platform received $52 million in late stage VC in June 2019. AI chip developer Habana Labs was acquired by Intel for $2 billion in 2019. AI is the leading sector for startups based in Tel Aviv, accounting for 40.7% of all startups and 25% of employees in the city. Cloud and big data comes second with a 38.1% share.

Cybersecurity

Israel exports $6.5 billion in cybersecurity products every year. It was the first country to offer a Cybersecurity PhD and it is home to six cybersecurity university research centers. Cybersecurity exits in Israel totaled $3.4 billion in 2019 with 23 deals including Demisto, which was acquired by Palo Alto Networks for $560 million and Tufin, which became a public company at a valuation of ~$450 million.

Reasons to Move Your Startup to Tel Aviv

COVID-19 Policy

The Israeli government announced a 1.5 billion ILS support plan, which includes 650 million ILS as "first aid" to small and medium-size companies through the Israel Innovation authority's grants and programs. Other initiatives are focused on backed loans for companies in need of funding, and encouraging the entrance of institutional investors into the market.

Density of startups and R&D hubs

Tel Aviv has the highest number of startups per capita in the world after Silicon Valley. It is now home to 107 multinational companies with R&D centers and innovation hubs, including Yandex, Amazon, and Alibaba.

National pre-seed fund

The Tnufa National Pre-Seed Fund offers grants of up to 85%for approved expenses.

Selected Startup Organizations

Startup Genome Members

Future Block Coworking
Future Block Programs
Geektime
Microsoft Ventures
Microsoft for Startups
SOSA
Startup Nation Central
Techstars

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