Israel

Tel Aviv

#4

Global Startup Ecosystem

#1

MENA ECOSYSTEM
Members: Tel Aviv Global

#5

Global Ecosystem in AI-Native Cluster

Top 10

Global Ecosystem in R&D Engine

#1

Ecosystem in Talent Strength
In Israel’s case, the value of its assets, particularly intellectual assets, far exceeds its liabilities. This is a country that has proven itself extraordinarily over the last two years, both militarily and technologically.
Bill Ackman
Bill Ackman
Founder & CEO, Pershing Square Capital

Highlights

Tel Aviv is defined by a culture of entrepreneurship, where ambitious founders, world-class technical talent, and a collaborative community converge to turn complex challenges into globally-scalable innovation. 

In 2025, Israeli tech companies recorded approximately $15.6 billion in private funding, with a significant concentration of activity in Tel Aviv, underscoring sustained investor engagement despite global market volatility. The year was also marked by an exceptional wave of exits totaling roughly $46 billion, surpassing previous records and driven largely by Cybersecurity and DefenseTech transactions that reinforced the city’s position as a major global center for security innovation.

Policy and infrastructure momentum is accelerating. In July 2025, the Israel Innovation Authority launched a competitive process to establish new state-backed technological incubators, each eligible for up to $11.9 million in public funding, with individual startups able to receive grants to advance Deep Tech ventures.

In January 2026, the government announced a $280 million national AI supercomputer initiative to provide high-performance computing infrastructure for startups and research labs, strengthening the foundation for AI-centric companies operating in Tel Aviv and beyond.

Locally, long-term ecosystem planning is moving into implementation. Following the unveiling of a new municipal strategic plan in 2025, Tel Aviv Global and city authorities have begun advancing initiatives to consolidate innovation activity, including the development of a large-scale tech campus expected to launch in 2026–2027. Together, capital inflows, public-sector coordination, and next-generation infrastructure signal a new phase of coordinated growth for the ecosystem.

Inclusivity initiatives also contribute to ecosystem depth, with programs such as the Google for Startups Accelerator: Women Founders supporting women-led startups in Israel through structured mentorship and investor exposure, strengthening access to capital and global networks for underrepresented founders.

Tel Aviv hosted The NEXT 2026: The Future Is Israeli Tech summit, convening more than 40 venture capital firms and approximately 100 startups for forward-looking discussions on innovation and capital formation, reinforcing the ecosystem’s role as a central gathering point for founders and global investors.

Ecosystem by the Numbers

ECOSYSTEM VALUE

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2023–2025. Ecosystem Value includes all active unicorns.
(H2 2023 - 2025)
$250 BN
GLOBAL AVG. $25 BN
REGIONAL AVG. $20 BN

ECOSYSTEM VALUE GROWTH

Growth is calculated based on the Ecosystem Value from H2 2018–2020 vs. H2 2023–2025.
(H2 2018 - 2020 VS. H2 2023 - 2025)
162%
GLOBAL GROWTH 149%
REGIONAL GROWTH 230%

AI-Native Ecosystem Value

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2023–2025 for AI-Native. Ecosystem Value includes all active unicorns.
(H2 2023 - 2025)
$22 BN
GLOBAL AVG. $4.4 BN
REGIONAL AVG. $2.1 BN

AI-Native Ecosystem Value Growth

Growth is calculated based on the AI-Native Ecosystem Value from H2 2021–2023 vs. H2 2023–2025.
(H2 2021 - 23 VS. H2 2023 - 25)
24%
GLOBAL GROWTH 161%
REGIONAL GROWTH 47%

EARLY-STAGE FUNDING GROWTH

Early-Stage Funding Growth is based on number of Seed and Series A rounds raised between 2022-2023 vs. 2024-2025 and calculated on a scale of 1 (lowest) to 10 (highest).
(2022-23 vs. 2024-25)
3
Scale of 1 (lowest) to 10 (highest)

AI-Native Early Stage Funding Growth

AI-Native Early-Stage Funding (ESF) Count Growth Tier evaluates the growth in the number of Early-Stage Funding rounds between 2022–23 and 2024–25. Ecosystems are scored on a scale from 1 to 10, where 1 represents the lowest growth and 10 represents the highest.
(2022-23 vs. 2024-25)
3
Scale of 1 (lowest) to 10 (highest)

TOTAL VC FUNDING

The Total VC funding (Seed, Series A, Series B+) in tech startups in 2021–2025.
(2021 - 2025)
$49 BN
GLOBAL AVG. $5 BN
REGIONAL AVG. $4 BN

TOTAL EARLY–STAGE FUNDING

The total Seed and Series A funding in tech startups in H2 2023–2025.
(H2 2023 - 2025)
$5 BN
GLOBAL AVG. $554 M
REGIONAL AVG. $497 M

EXIT AMOUNT

The total value of exits from the ecosystem.
(2021 - 2025)
$76 BN
GLOBAL AVG. $7.6 BN
REGIONAL AVG. $4.9 BN

EXIT COUNT (#)

The number of exits from the ecosystem.
(2021 - 2025)
476
169
2021
84
2022
74
2023
69
2024
80
2025
GLOBAL AVG. 103
REGIONAL AVG. 47

TIME TO EXIT

The average age at the time of exit in the ecosystem in 2021–2025.
(2021 - 2025)
7.5 YEARS
GLOBAL AVG. 11.1 years
REGIONAL AVG. 9.2 YEARS

NUMBER OF UNICORNS 

The number of startups that meet our definition and have been valued at more than $1 billion and have not exited.
(ACTIVE UNICORNS)
52
GLOBAL AVG. 11
REGIONAL AVG. 16

MEDIAN SEED ROUND

The median of seed rounds in tech startups in the ecosystem in H2 2023–2025.
(H2 2023 - 2025)
$3 M
GLOBAL AVG. $1 M
REGIONAL AVG. $853 K

Median Series A Round

The median of Series A rounds in tech startups in the ecosystem in H2 2023–2025.
(H2 2023 – 2025)
$11 M
GLOBAL AVG. $6.2 M
REGIONAL AVG. $5.9 M

Top Funded Startups

Top startups identified based on funding amount from July 2023 to December 2025.
(H2 2023-2025)
1: Wiz
2: Cato Networks
3: AI21
4: Next Insurance
5: Island

SOFT. ENGINEER SALARY

Average software engineer salary informed by data from Glassdoor, Salary.com, and PayScale, as well as local sources when available.
(2025)
$108 K
GLOBAL AVG. $54 K
REGIONAL AVG. $40 K

Sub-Sector Strengths

AI, Big Data & Analytics
AI, Big Data & Analytics

Tel Aviv continues to generate globally-relevant AI technologies and major transactions. In January 2026, Apple acquired Tel Aviv–based AI startup Q.AI for nearly $2 billion, highlighting international demand for locally-developed AI capabilities. Tel Aviv University and other Israeli research institutions continue expanding AI research commercialization efforts, reinforcing the city’s talent pipeline into AI-Native startups. Atidim Park serves as a key physical hub within Tel Aviv’s AI landscape. Its selection in January 2026 as the site for Israel’s first planned eVTOL vertiport – facilitated by Cityone, the park’s urban innovation lab – highlights its role in supporting AI-enabled mobility.

Cybersecurity
Cybersecurity

Cybersecurity remains a defining pillar of Tel Aviv’s innovation economy, supported by strong capital flows and global industry engagement. 130 Israeli Cybersecurity startups raised $4.4 billion in 2025, with early-stage rounds increasing and international venture capital firms leading many deals. In September 2025, Tel Aviv–based Remedio secured a $65 million Series A round to scale its AI-driven device security platform. CyberWeek 2025 in Tel Aviv convened participants from more than 90 countries, reinforcing the city’s role as a global convening point for security innovation.

Life Sciences
Life Sciences

Life Sciences activity in Tel Aviv is reinforced by research institutions, international partnerships, and sector convenings that connect startups with investors and clinicians. Biomed Israel 2026 gathered entrepreneurs, researchers, and global healthcare leaders to showcase advances in diagnostics, medical devices, and therapeutic development. Public-sector support continues through the Israel Innovation Authority’s July 2025 incubator expansion, which includes funding pathways for bio-convergence and medical technologies. These coordinated efforts sustain a pipeline of science-based ventures translating research into scalable health innovation.

Selected Startup Organizations

Startup Genome Members

MEMBER

Tel Aviv Tech is a strategic unit led by the City of Tel Aviv-Yafo and operated by Tel Aviv Global to strengthen the city’s innovation landscape. Acting as a partner to the entire ecosystem — from early-stage entrepreneurs to leading scaleups and MNCs — the unit builds the necessary infrastructure and collaborative frameworks for the city to thrive. By bridging municipal assets with the private sector and creating high-impact opportunities on the global stage, Tel Aviv Tech strengthens the city’s "Startup City" brand and ensures its long-term competitive edge in the global market.

Work with us

If you are interested in working with us to drive global attention to your ecosystem, please get in touch with Marina Krizman, Director of Business Development.

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