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Israel has found significant success in the tech scene as a startup nation. They have even gained 28 times more capital flow compared to the U.S. in 2021 per capita. Israel tech has great startup potential as their high-tech companies were able to raise almost $15 billion in 2022 while their cybersecurity startups raised $8.8 billion in 2021. One of the current cybersecurity unicorns is actually an Israeli company. 

A Breakdown of Israel Tech

The city of Tel Aviv has recently been ranked the seventh most attractive ecosystem for startups with a value of $120 billion. In 2021 alone, startups raised 63% of the national total. Tel Aviv also increased the total number of unicorn companies to 92 in the same year with companies like Apple and Citibank creating innovation centers in the city. Israel has the second highest world venture funding per capita with $959 billion.

Israel’s business success can be attributed to several factors, such as tax incentives and government programs. At least 30 grants and tax incentive programs have been created for R&D that reduce tax rates and provide tax exemption. Other R&D grant programs offer up to a 50% deduction in R&D expenses for certain entrepreneurs, NGOs, and multinational companies. A government program called Yozma matched any outside venture capital investment in a startup in Israel in exchange for a return on investment if the company had a successful exit.

With the Abraham Accords signed in 2020, Israel’s economic relationships were able to extend to more places in the Middle East. If the accords continue to grow, more than 4 million jobs could be created. Israel also holds an annual global investor summit that typically welcomes more than 9,000 people from 81 counties, 380 portfolio companies, and 42 funds from around the world. 


Israel is significantly impacting the startup space, but only time can fully show how much of a global impact they have.

How Israel Has Emerged on the Tech Scene

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