Israeli start-up scene: A state of acceleration

Tel aviv start-up
Tel aviv start-up

Hub of Entrepreneurship

With about 7,000 startups at any given time Israel is considered the world’s second largest hub of entrepreneurship after the USA. The main eco-system in Israel is in and around TLV, where within a radius of 15km, the majority of Israel’s startups can be found.Jerusalem with a few hundreds of startups is in the rise as the second largest eco-system, followed by Haifa and Beersheba. Much has been written about the Israeli entrepreneurship it’s history and main drivers but little about the acceleration.

Israel in figures

Total high-tech employees: 283,000 (2014 figures of the Israeli Ministry of Finance)
9% of Israel’s GDP
12% of Israel’s employees

In 2015

708 Israeli startups raised a total: $4.43Bi
Average funding round: $6.3 Mi
104 Exits: $9Bi
Average Exit: $87Mi
8 IPOs
Every year about 700 – 800 startups are founded


Currently the Israeli startup scene is in a state of acceleration. The entrepreneurship scene in Israel is moving at an ever-increasing pace and the startups life cycle from funding to exit is getting shorter. A typical life cycle from funding to exit is about 4 years in the internet/mobile area, (2-3 years in the cyber domain). Most Exits are ranging between $50Mi – $500Mi dollars.

Reasons for acceleration

– Eco-system maturity
– Availability of funding – large amount of the early stage funding comes from angel investors
– An abundance of accelerators and incubators (over 60) – better team building & ‘education’, faster prototyping, failing faster and easier access to clients and investors.
– Great peer to peer support and access to experienced founders
– Many of the experienced entrepreneurs have experience with corporations (they have worked there after their company was purchased) – i.e. are familiar with both, the startup and corporate worlds, which helps in building up the bridges between them.
– Over 5,000 events annually provide networking, learning, experimenting and recruitment opportunities.
– Over 250 multinational companies have a presence in Israel. These include most of the world tech leaders such as Apple, Google, Facebook, IBM, Intel, Deutsche Telekom, AT&T, Bosch, SAP, Siemens, Microsoft and more. Their presence provides corporate funding and cooperations to problem solving for developers.

All of the above make it easier to open a startup, get it right as soon as possible (or fail fast) and scale faster.


About the Author

Gilli Cegla is a Tel Aviv-based entrepreneur & angel investor. Gilli is the founder & Managing Director of Novawind and organizes the EuropeDays conference in Tel Aviv.

EuropeDays 2016, Start in Germany, April 12 in Tel Aviv

The event, targeting Israeli entrepreneurs, is designed to provide useful, hands on information about the German market and the opportunities it offers Israeli startups. In addition, the event will provide networking opportunities with key people in the German tech scene. Useful insights on topics such as: “Go To Market” into Germany, work with corporations, localization, funding, accelerators, cities will be included. During the moderated networking sessions startups can meet segment specific experts.

Speakers confirmed include people from Bosch, Pro7Sat1, Metro, High-Tech Gründerfonds, RWE, Vertical Media, LeRoi, the New Media accelerator, Stroeer, and the cities of Cologne and Berlin.

Date & time: April 12, 08:30

Event location: Dubnov Gallery, Meirhoff Art Center, 8 Dubnov st., Tel Aviv
Startups special price: NIS 99 (before VAT)

Event is organized by Novawind, who specialize in business & innovation development between Israel and Europe.

Articles about the 2015 event can be found here: Gruenderszene and Welt

Call for German speakers open until 30 March.