A new report issued by TechAviv and Dealroom, a provider of data on global tech ecosystems, found that despite a slowing global market Tel Aviv is constantly finding new ways to grow. The city is ranked the fifth highest producer of unicorns worldwide, and over-indexing security tech above the global average. Unicorns are high-tech startups that reached a valuation of at least $1 billion.
The report also found that Tel Aviv is home to one of the fastest growing mature ecosystems globally.
Tel Aviv startups are now worth $393 billion, up 3.5 times since 2018, growing faster than many of the top valued ecosystems worldwide including Los Angeles and London. Tel Aviv also ranks as the second highest valued ecosystem in the EMEA (Europe, the Middle East and Africa).
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Tel Aviv also ranks third in the EMEA for total VC funding raised in 2022. Tel Aviv headquartered startups raised $6.9 billion in 2022, close to two times more than in 2020. Security was the top-funded industry in 2022 ($1.7 billion), and Health was one of the fastest growing (+33%). Additionally, Tel Aviv over-indexes in Security at 19.2% of total VC investment by sector, compared to a global average of 5.3%.
Local retention is also high, as 76% of second generation companies were also founded in Tel Aviv.
Ron Huldai, Mayor of Tel Aviv-Yafo said, “I am proud of the fact that the city of
Tel Aviv-Yafo is ranked so high in the Global Founders Factory and that 27 leading local companies ‘gave birth’ to 108 innovative companies, which were founded by former employees of larger companies. These are the achievements of democracy, freedom and human rights, which lead to the amazing creativity and achievements of the local high-tech industry the past year.”
Huldai also commented on Israel’s current political turmoil saying, “Moreover, we must not forget that currently, democracy in Israel is in crisis and that the high-tech industry flourishes best alongside freedom, liberality and equal rights. A threat to these values is a disaster for the Israeli economy in general and the high-tech industry. In the shadow of the fall of the shekel, Tel Aviv technology companies are transferring workers to other countries, and the cessation of investments in Israel has begun. The legislation must be stopped immediately so that the high-tech industry and Tel Aviv and the national economy are not further damaged. We in Tel Aviv-Yafo will continue to be committed to democratic and strengthening the local high-tech industry.”
Produced in partnership with Tel Aviv Tech, a department of the Tel Aviv Municipality focused on the engagement and promotion of the city’s tech ecosystem recently published a report that describes the Tel Aviv tech ecosystem’s strong performance in 2022.
Access and download the full report here.
Tel Aviv Tech is a strategic economic development initiative of the Mayor’s Office of Tel Aviv-Yafo dedicated to advancing the city’s tech ecosystem through direct engagement with its diverse stakeholders, alongside research and international partnerships.
Dealroom.com is a data provider on startups as well as early-stage and growth company ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, they work with many of the world’s most prominent investors, entrepreneurs and government organizations to provide transparency, analysis, and insights on venture capital activity.