In our own lifetimes, Israel has emerged as a major world player in tech startups. What makes Israel a Startup Nation? Learn more about the companies, VCs, events, and deals that are happening with Israel tech startups in the infographic below.
How Israel Has Emerged on the Tech Scene
In 2021, Israel received 28 times more capital flow than the U.S., on a per capita basis — solidifying its reputation as the startup nation
Israel’s Massive Startup Potential
In 2022, Israel’s high-tech companies raised $14.95 billion through 663 deals
In 2021, 57 Israeli companies went public and raised $4 billion — almost three times the $1.7 billion raised by IPOs in 2020
Israeli cybersecurity startups raised $8.8 billion in 2021 — more than 3x the amount raised in 2020
Invests 4.1% of GDP into R&D — 2X the OECD average
Ranked #2 in the world for R&D expenditure per capita
Ranked #3 in the world for number of AI and machine learning startups
1 out of 3 cybersecurity unicorns in the world is an Israeli company
Hosts R&D centers for large companies like:
Amazon
Apple
Cisco Systems
Facebook
Hewlett-Packard
Intel
IBM
Google
Microsoft
Motorola
SAP
Samsung
84% of MENA’s total VC funding went to Israel in 2021
Tel Aviv
7th largest startup ecosystem in the world (2022)
Patent count increased by 169% since 2021
$120 billion startup value (2022)
In 2021:
Startups raised $20 billion — 63% of national total
Gained 30 new unicorns (companies valued $1 billion or more) — total of 92 unicorns in 2022
Innovation centers established by companies like:
Volkswagen
Anheuser-Busch
Apple
Citibank
7 years time to exit, compared to global average of 9.4 years
World Venture Funding Per Capita With $1B+
1st Singapore: $1,398 B
2nd Israel: $959 B
3rd Estonia: $915 B
Israel has created a haven for entrepreneurs and innovators through various government programs and tax incentives
Factors Driving Israel’s Business Success
Many US VC firms have offices in Israel
Israeli startup founders have moved headquarters to thriving US cities to tap into local investment
Going public or selling to large US tech companies made Israeli companies attractive to VCs
Small local markets and security threats forced Israeli entrepreneurs to operate globally
Unit 8200 – elite cybersecurity intelligence unit produced a group of world-class cybersecurity experts with the talent to start companies
Yozma, government program launched in 1983
Matched outside venture capital (VC) investment in an Israeli startup
Asked the VC firm to return its investment if the company had a successful exit
30+ grants and tax incentive programs for R&D, including:
Conditional grants
Reduced tax rates
Tax exemption
$70 million program launched in January 2022 to promote entrepreneurship among Arab communities
Employment Aid Programs
Wage subsidies for new employees range from 10-40% up to several years
Intellectual Property Incentives
IP assets created in Israel or transferred to Israel qualify companies for reduced corporate, dividend, and capital gains tax rates
Angel’s Law offers tax benefits and deductions to single investors who invest in Israeli companies during R&D stage
40+ R&D grant programs for multinational companies, individual entrepreneurs, research institutions and NGOs offering:
Customized and comprehensive incentive toolbox
Innovation Labs programs that offer up to 50% deduction in R&D expenses for specific sub-sectors
The Abraham Accords, signed on September 15, 2020, normalized relations with the United Arab Emirates — and just a few weeks later — with the Kingdom of Bahrain
The Powerful Impact of The Abraham Accords
Extended Israel’s economic relationships in the Middle East
150,000 new jobs could be created for the four signatories
If the accords grow to include 11 nations, the impact could be:
More than 4 million jobs
More than $1 trillion in new economic activity over a decade
1/10th of the world’s unicorns are currently from Israel
Notable Israeli Startups
OverWolf
$150 million in funding
Provides third-party developers with the ability to create extensions and add-ons for computer games
Tens of millions active users generating tens of millions of dollars in annual revenue
Torq
$78 million in funding
Builds code-free automation used by security and operations teams
Allows security teams to build complex solutions in a visual interface
Justt
$70 million in funding
Simplifies credit card payment disputes for businesses
Helps businesses deal with credit card companies and banks
TytoCare
$155 million in funding
System enables comprehensive remote testing and medical monitoring of patients in their homes
Provides opinions from expert doctors around the globe
Ermetic
$97 million in funding
Cloud security platform that reveals circumstances putting data at risk
Allows users to implement zero trust and least privilege access across the multi-cloud infrastructure
Waze
$67.1 million in funding
Navigation app that helps users avoid traffic
Used by over 140 million drivers and riders
Mobileye
$515 million in funding
Hardware and software providing driver assistance and cloud-enhanced driver assistance through cameras, chips, sensors, and mapping technology
Developing technology to create a future of autonomous driving
Onavo
$13 million in funding
Mobile intelligence service that empower business decision-makers with market intelligence data
Acquired by Meta Platforms (formerly Facebook)
PrimeSense
$39.4 million in funding
Leading developer of of 3D sensor technology that allows digital devices to observe a scene in 3D
Used by Xbox 360 video game consoles and iPhone Face ID
Acquired by Apple in 2013 for $350 million
Staircase
$4 million in funding
Customer Intelligence Platform
World’s first AI responder
Wiz
$900 million in funding
$10 billion valuation in 2023
Cybersecurity firm specializing in security for cloud infrastructure
World’s most valuable cybersecurity unicorn
OurCrowd 10th Annual Global Investor Summit
9,034 people registered from 81 countries.
943 entrepreneurs.
1,084 MNCs.
111 delegations.
300+ press.
$2.1B in commitments.
380 portfolio companies.
42 funds around the world.
“Israel has dominated all sectors of technology for decades and will continue to do so far into the future. Yes, there are challenges, but the Israeli tech ecosystem will continue to thrive and change the world.”
Hillel Fuld – tech journalist, startup advisor, and ambassador of Israeli tech
With a history of incredible innovation, Israel is associated with a number of influential people, according to the Influence Ranking Engine at AcademicInfluence.com
People You Should Know
Yossi Vardi
Israeli entrepreneur and investor, known for the DLD Conference
For over 47 years he has founded and helped to build over 85 high-tech companies in a variety of fields, among them software, energy, Internet, mobile, electro-optics, and water technology
Gil Shwed
Israeli software engineer and entrepreneur
Co-founder and CEO of Check Point Software Technologies Ltd, one of Israel’s largest tech companies and world’s largest pure-play cybersecurity company
Daphne Koller
Israeli-American computer scientist specializing in machine learning, AI, computer vision, and computational biology
Launched online learning platform Coursera in 2012 and served as Co-CEO with Andew Ng
Won the MacArthur Fellowship award in 2004
Avi Wigderson
Israeli mathematician and computer scientist
Herbert H. Maass Professor in the school of mathematics at the Institute for Advanced Study in Princeton, New Jersey
Received the Abel Prize in 2021 for work in theoretical computer science
Yoelle Maarek
Tunisian-born Israeli computer scientist
VP of Worldwide Research at Amazon
Researcher in the field of search engines and data mining
First engineer of Google Israel and established the company’s first development center in Haifa in 2006
Joseph Klafter
Israeli chemical physics professor
Heineman Chair of Physical Chemistry at Tel Aviv University
8th President of Tel Aviv University from 2009 to 2019
Won the 2020 Israel Prize in the fields of Chemistry and Physics
Andrei Broder
Distinguished scientist at Google focused on understanding users, places, content, and actions using Machine Learning, Text Analysis, and Information Retrieval techniques
Interests include Discrete Algorithms, Operations Research, and Market Algorithms
Israel’s drive for innovation is undeniable and only time will reveal its full impact on global entrepreneurship
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