Elaborations by Doria Ben-Bassat, Head of Research and Strategic Partnerships at Tel Aviv Global
3-Sentence Pitch on the local Startup Ecosystem
Recognized as one of the world’s leading innovative cities, Tel Aviv is at the heart of the global startup scene and is unparalleled in its creative and brilliant energy. The city cultivates a thriving and accessible start-up ecosystem, brimming with venture capital opportunities, seed funds, and innovation hubs. Home to leading international high-tech firms alongside the greatest number of startups per capita in the world, the ecosystem is supported by top talent, leading research and academic institutions, and a culture of creativity – it’s no wonder Tel Aviv was ranked #1 startup ecosystem outside the US according to Compass- the Global Startup Ecosystem Ranking 2015. For more information please see the Startup City Flyer.
Sectoral Focus of the Startup Ecosystem
Tel Aviv’s ecosystem engages in diverse sectors, the most notable are Cyber Security, Fintech and E-commerce.
Local Financing Landscape/Presence of VCs
Tel Aviv is home to 168 VCs, PE’s and Angel groups, and an average investment of 8.5M$ per round of funding per startup. In 2015, annual exit transactions in high-tech companies totaled $4,605,000,000.
Presence and Industrial Focus of Established Industries
Tel Aviv is the leading High Tech city in Israel and home to 28% of all high tech companies in the country, most notably in the sectors of Internet, Software, Information Systems and Bio Tech. Almost 50% of total funding in 2016 was raised by companies operating in Tel Aviv.
In addition, Tel Aviv is also the financial center of Israel. Home to the Stock Exchange, Tel Aviv is known for its high number of banks and insurance and financial services.
Presence of Incubators/Accelerators
Tel Aviv has the top accelerator hubs in Europe with 84 co working spaces, accelerators and innovation centers. Over the past few years a noticeable trend has evolved of multinationals building innovation centers in Tel Aviv, which has been of great benefit to local startups. Some prominent names include:
Presence of Research Institutes and Universities
Home to some of the world’s leading academic programs in innovation, engineering and technology-related fields, Tel Aviv — the Startup City of the Startup Nation — provides companies, investors and global enterprises with a multitude of talent, developed infrastructure and business opportunities. In addition to hosting a number of specialized colleges, Tel Aviv University (TAU) and Bar-Ilan University are both world renowned research institutions, with TAU boasting the #1 MBA program outside the US (PitchBook Universities 2016-2017).
In addition, there are multitudes of innovation and startup related events that are open and free to the public. There are over 100 tech-related meetups every month and over 350 tech-related meetup groups.