Israel

Tel Aviv

#4

Global Startup Ecosystem
Members: Tel Aviv Global

#4

Global Ecosystem in Performance

Top 10

Global Ecosystem in Knowledge

#1

MENA Ecosystem in Funding
There's no question in my mind Israel has the highest quality entrepreneurs in the world, full stop. The probability of finding the right mix of high integrity, hard work, smarts, and hustle is better here than just about anywhere else in the world.
Jeff Horing
Jeff Horing
Insight Partners Co-Founder and Managing Director

Highlights

Tel Aviv thrives on a spirit of innovation driven by a bold entrepreneurial culture, unparalleled tech expertise, and a close-knit community that embraces breakthrough thinking.

Tel Aviv’s VC scene is marked by a high concentration of seasoned investors, strong international connections, and a proactive approach to funding for early-stage innovation. In 2024, Israeli startup companies raised $12.2B collectively, a 31% increase over the previous year. Corporate-backed funding made up 24% of all investments and 83% of the city’s startups received investment from corporate partners, reflecting a growing synergy between multinational companies and the local startup community. In 2024, early-stage investments by angels doubled in Israel. In April 2025, early-stage VC firm TBD VC announced a $35M fund to back Deep Tech Israeli founders at the pre-seed and seed stages. 

Innovation is a key driver of Tel Aviv’s startup ecosystem, and its robust support infrastructure offers entrepreneurs and ecosystem players the tools to adapt, grow, and create solutions that meet evolving market needs across sectors. The Tel Aviv Sparks Innovation Summit was held in March 2025 with a focus on technological innovation. In November 2024, onshore wave energy technology company Eco Wave Power announced it would launch Israel’s first pilot station for generating electricity from sea waves at Tel Aviv’s Jaffa Port. Quantum Machines opened The Quantum Computing Center, a world-class research facility supporting quantum innovation, in 2024. The company raised a $170M Series C in March 2025.

Tel Aviv Tech, an initiative by the Tel Aviv-Yafo Municipality, functions as a central hub and dedicated resource center designed to cultivate and accelerate the city's vibrant technology ecosystem. Its work encompasses a range of activities focused on empowering entrepreneurs, fostering the growth of startups, and supporting established tech companies within Tel Aviv.

Ecosystem by the Numbers

ECOSYSTEM VALUE

A measure of economic impact, calculated as the value of exits and startup valuations from H2 2022–2024.
(H2 2022 - 2024)
$198 BN
GLOBAL AVG. $20.4 bn

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)
53
GLOBAL AVG. 4

SOFT. ENGINEER SALARY

Average software engineer salary informed by data from Glassdoor, Salary.com, and PayScale, as well as local sources when available.
(2024)
$98 K
GLOBAL AVG. $52 K

TIME TO EXIT

The average age at the time of exit in the ecosystem in 2020–2024.
(2020 - 2024)
7.8 years
GLOBAL AVG. 11.2 years

TOTAL EARLY–STAGE FUNDING

The total seed and Series A funding in tech startups in H2 2022–2024.
(H2 2022 - 2024)
$4.2 BN
GLOBAL AVG. $514.8 m

MEDIAN SEED ROUND

The median of seed rounds in tech startups in the ecosystem in H2 2022–2024.
(H2 2022 - 2024)
$3 M
GLOBAL AVG. $889 k

EARLY-STAGE FUNDING
GROWTH

Early-stage funding growth is based on number of seed and Series A rounds raised between 2021-20222 vs. 2023-2024 and calculated on a scale of 1 (lowest) to 10 (highest).
(2021 - 22 VS. 2023 - 24)
3
Scale of 1 (lowest) to 10 (highest)

EXIT AMOUNT

The total value of exits from the ecosystem.
(2020 - 2024)
$67 BN
GLOBAL AVG. $8 bn

ECOSYSTEM VALUE GROWTH

Ecosystem Value growth (CAGR) is calculated based on companies founded in the ecosystem in H2 2020–H2 2022 vs. H2 2022–H2 2024.
(H2 2020 - H2 2022 VS H2 2022 - H2 2024)
-8%
GLOBAL AVG. -14%

MEDIAN SERIES A ROUND 

The median of Series A rounds in tech startups in the ecosystem in H2 2022–2024.
(H2 2022 – 2024)
$11.1 M
GLOBAL AVG. $6.8 m

TOTAL VC FUNDING

The total VC funding (seed, Series A, Series B+) in tech startups in H2 2022–2024.
(2020 - 2024)
$52 BN
GLOBAL AVG. $5.2 bn

EXIT COUNT (#)

The number of exits from the ecosystem.
(2020 - 2024)
434
82
2020
158
2021
71
2022
70
2023
53
2024
GLOBAL AVG. 86

Sub-Sector Strengths

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

Four Tel Aviv-based startups were featured in Time Magazine’s Best Inventions of 2024 list, including AI startups UVeye and D-ID. In 2024, OpenAI co-founder Ilya Sutskever established a research lab in Tel Aviv to reach top talent for safe superintelligent AI company SSI. In 2024, Meta launched AI Accelerator TLV, aimed at developing early-stage Israeli AI startups. Computing giant Nvidia acquired Tel Aviv-based AI infrastructure startup Run:ai for $800M in December 2024. AI startup Qodo raised $40M in a September 2024 Series A. AI Week 2024 brought together global experts to discuss advancements in AI.

Cybersecurity
Cybersecurity

Tel Aviv secured several major cybersecurity funding rounds in the last year, underscoring its position as a global powerhouse in security innovation and investment. Cybersecurity unicorn Wiz announced it will open a multi-million dollar headquarters in Tel Aviv following its $32 billion purchase by Google parent company Alphabet in March 2025. The same month, Cybersecurity startup Island raised a $250 million Series E, increasing its valuation to $4.8 billion. In February, AI Cybersecurity startup Dream raised a $100 million Series B, reaching a $1.1 billion valuation.

Life Sciences
Life Sciences

Tel Aviv's dynamic and rapidly-evolving Life Sciences sector is marked by cutting-edge research, significant investments, and robust international collaborations. Israel’s Life Sciences industry grew by 25% in 2024 to $2.7 billion, highlighting the region’s global prowess. Computational disease modeling startup CytoReason raised an $80 million round in July 2024. The same month, Edwards Lifesciences announced it would acquire Tel Aviv-based startup Innovalve for $300 million. In May 2025, Tel Aviv hosted Biomed Israel, the country’s premier Life Sciences conference, enabling global industry leaders to experience Israel’s vibrant Life Sciences innovation.

Reasons to Move Your Startup to Tel Aviv

Established Startup Scene

Tel Aviv’s startup ecosystem is fueled by a rich blend of innovative founders, forward-thinking investors, and a broad support network of accelerators and experienced mentors. More than 180 multinational corporations — including tech giants like Microsoft, Google, Amazon, and NVIDIA — have established R&D centers in Tel Aviv.

Tax Incentives

Tel Aviv offers attractive tax incentives for startups, including reduced corporate tax rates, grants for R&D activities, and benefits under Israel’s Innovation Authority programs to support early-stage growth. The 2025 State Budget and Economic Plan includes provisions for tech sector growth, including capital gains tax exemption for foreign investors, taxation certainty of R&D centers for multinational groups, and knowledge transfer from academia to industry.

Dedicated Support

Tel Aviv’s startup support network, powered by accelerators, incubators, academia, and government, is deeply connected both locally and internationally, linking entrepreneurs to global investors, corporations, and innovation hubs. U.S.-based investor Sender Cohen announced in February 2025 that he would lead an investment group to raise $800 million to set up a commercial science and innovation research lab in Tel Aviv.

Selected Startup Organizations

Key Ecosystem Players

Deeptech Nation

As Israel’s first nation‑wide community dedicated to DeepTech innovation, The community unites scientists, entrepreneurs, academia, investors, and government into a single high‑trust community to pool funding and to accelerate commercialization and scaleup of breakthrough research.

Guy Katsovich

Guy Katsovich is an investor, thought leader and social entrepreneur. He is the Managing Partner of Fusion VC, Israel's leading pre-seed investment platform and accelerator program, which he co-founded with Yair Vardi in 2017.

Iris Shor

A serial Entrepreneur, founder at Oribi that was acquired in 2022 by LinkedIn. Passionate about great products, creative marketing and bringing authenticity and vulnerability into companies' culture. A writer and a public speaker, sharing insights from her entrepreneurial journey.

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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