Startup Genome, a technology research firm [,] has been ranking startup ecosystems for nearly a decade. A recent survey published as part of their “Global Startup Ecosystem Report GSER 2020”, ranks 150 cities across the globe that are considered leaders in the global startup ecosystem. The ranking factored in performance (revenue and exits), access to funding, global reach, ability to recruit top talent, connections between startups, and knowledge (patents and publications). Tel Aviv and Jerusalem together came in sixth place ranking for the most attractive ecosystems for startups and innovation.
[According to Aharon Aharon, CEO at IIA,] “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.”
The report outlined the following reasons as to why you should invest and move your startup to Tel Aviv:
- Israel ranks third in the number of AI startups globally, leading sector for startups based in Tel Aviv with Google setting up its first startup accelerator focused on AI and machine-learning outside of the U.S.
- Israel exports $6.5 billion in cybersecurity products every year with exits totaled in $3.4 billion in 2019
- Tel Aviv has the highest number of startups per capita in the world after Silicon Valley and is home to over 100 multinational companies, including Yandex, Amazon, and Alibaba.
- COVID-19 Policy: The Israeli government announced a 1.5 billion ILS support plan, and a 650 million ILS as “first aid” to small and medium-size companies focusing on backed loans for companies in need of funding encouraging the entrance of institutional investors into the market