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Why Israel is a Startup Nation

DIGITAL VENTURES June 30, 2017 11:29 AM


In the startup network, we often hear of Israel as the “startup nation”. However, aside from the numerous startups and accelerators, there are other reasons. This is why we were tempted to explore this ideal startup ecosystem half way across the world.


Here is a summary of why Israel is a startup nation. Last May, the “Tel Aviv (Fin) Tech Explorer with Digital Ventures” trip opened doors to new businesses for SCB clients ex. SCG, PTT, Ananda, and Central. Let’s have a quick look.

Why Israel is recognized as a startup nation.

  • Israel has a population of 8 million equipped with state of the art technologies that bring great income to the country. In the 8 million, 40,000 people are working in advanced-technology industries. This industry accounts for 15% of the country’s GDP. Israel ranks third as a country with the most companies in NASDAQ, next to the United States and China.

  • Over 8,000 startups flock to Israel ranging from early-age to those exiting the market. Also, Israel has 260 accelerators nationwide who help to nurture and develop these startups. Assistance comes from government and private sectors. Interestingly, the proportion is 31 startups per 1 accelerator.

  • Israel ranks number 1 for R&D investment in the world. It accounts for 4.25% of the country’s GDP. Moreover, over 300 world leading R&D firms namely Google, Facebook, Apple, IBM, Microsoft, etc. have innovation and technology presence in Israel.

  • Deep technology startups in Israel are outstanding. Also, Fintech prevails with the highest investments followed by big data and cyber security.

  • Tel Aviv ranks top 3 in terms of the best startup ecosystem in the world. In 2016, Tel Aviv, a port city and renowned economic zone in Israel was ranked 3rd in the world for its top-performing startup ecosystem, next to Silicon Valley and Stockholm. Such ecosystem is considered in several aspects.

  • Talent – engineer experts.

  • Funding – readiness of funding from different sectors.

  • Technology – basic technological infrastructure.

  • Startup – a supportive environment and culture for entrepreneurs, the so-called Startup Culture.

  • Government – policies, laws, economic structure, as well as good and sincere support from the public sector.

  • Leading CVC from all over the world are in Tel Aviv. The city houses several MNC or Multinational Corporates such as GE Ventures by General Electric, Citi Innovation Lab TLV by Citibank, and IBM Alpha Zone by IBM.


These are some of the reasons why this country houses world-renowned startups. For more information about innovation is this city, read “Tel Aviv อิสราเอล สวรรค์ของ Startup”. Luckily, we also got a chance to visit the “DLD Tel Aviv Innovation Festival 16” during this trip.