Israeli tech startups are often able to garner more funding and more attention than startups in other countries. Israeli cybersecurity startups raised $8.8 billion in 2021 – more than tripling the amount they raised in 2020. 2021 had 57 new companies go public in Israel who went on to raise $4 billion, almost tripling the $1.7 billion raised by IPOs in the year previous. Israel is ranked top 3 in the world for both R&D expenditure per capita as well as number of AI and machine learning startups. 1 of 10 unicorns, or companies worth over $1 billion, are from Israel, and 1 of 3 cybersecurity unicorns are an Israeli company. Tel Aviv alone is the 7th largest startup ecosystem in the world with a total startup value of over $120 billion.
Behind startups in Israel are a number of driving factors helping these businesses get on their feet and succeed in the international marketplace. Many Israeli tech startups have small local markets and few security threats, forcing Israeli entrepreneurs to start seeing and operating in the global market sooner than other entrepreneurs. Many US venture capital firms as well as tech giants maintain their attention on Israel as they have offices, R&D departments, and even some acquisitions in Israel. Government programs and grants, such as reduced tax rates or exemptions, or the Yozma program, which matched outside funding, make Israel invest into its own companies.
Learn more about how Israel has become a hub for cybersecurity and tech startups here:
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