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Tel Aviv, Israel: Startup’s Heaven (part2/2)

DIGITAL VENTURES October 29, 2016 9:01 AM

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In the latest part, we told you about “DLD Tel Aiv Innovation Festival 16” as our team attended the event last September in Tel Aviv, Israel, which is known as the center of startups. This is not a coincident. It is because of the full support and cooperation between the government and the private sectors coupled with some other factors related to history and the people. What make Israel the heaven for startups are:

  1. Highly educated people: The population of engineers and scientists in Israel is the second largest in the world! Both locals and migrants have to take 2-year of army service, allowing them to have intensive IT training and strong sense of responsibility and commitment to success

  2. Government support: The government provides full support and even has its own accelerator or an IT incubator center. Being a war sensitive country, Israel has to invest a lot in national defence through construction and development of new technologies.

  3. Strong R&D: About 4.25% of Israel’s GDP is spent on R&D, the largest in the world. Such R&D is not for business or commercial purpose, but for military and defence. Therefore, all the technologies developed here must be highly efficient. Most of the research is in core technology, such as Blockchain and Internet of Things (IoT), rather than in consumer products.

  4. Investors everywhere: Israel is full of investors who have money and network. The number of investors in Israel is the 5th largest in the world, providing greater opportunities for startup to have greater access and a chance to expand their businesses overseas.

  5. Giants have office here: The world’s technology leaders like Apple, Google, Facebook, SAP, Cisco and Microsoft all have their offices established in Israel.

Considering all the supporting factors, including technology knowledge, research and development as well as funding, it is no surprising why Israel is known as the “Startup Nation”. In 2015, there were around 5,000 startups in Israel, which is among the world’s top ranks. This makes Israel a country with ideal ecosystem for startup. (based on 2015 information)