Israel’s Central Bureau of Statistics released a report on the country’s startup companies that have become mature and that operated between 2011-2022.
In 2022, 4,796 startup companies operated in Israel, an average annual increase of 3% compared to 2011.
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In 2022 – 38,600 full-time positions were employed in the startup companies, an increase of 4% compared to 2021.
In the years 2011-2022, 8,859 start-up companies were opened in Israel. 4,519 (51%) of them were closed or suspended their activity until 2022.
The average monthly salary for a salaried position in the startup companies in 2022 was 25,100 Shekels, an increase of 9% compared to 2021 (22,900 Shekels), and twice the average monthly salary for a salaried position in the Israeli economy as a whole (11,800 Shekels).
73% of the start-up companies and 79% of the salaried jobs were concentrated in the Tel Aviv and Central districts
In 2022, about 19% of the start-up companies and the mature companies were defined as “High Growth” and about 9% were defined as “gazelles,” companies with at least four consecutive years of sustained growth.
In the years 2020-2022, about 20% of the start-up companies received a grant of 2.1 billion Shekels from the Innovation Authority.
In 2022, the start-up companies and the mature companies raised approximately $19 billion, a decrease of 45% compared to the year 2021.
In 2022, 2,560 mature companies employed 120,900 salaried jobs which is 76% of the total salaried jobs in start-up companies and mature companies combined.
Active Companies and Full-Time Jobs
An active company is defined as a company that in a certain year has VAT, social security and/or income tax reports. In 2022 4,796 startup companies operated in Israel, an average annual growth of 3% in the years 2011-2022. In 2022 there were 38,600 salaried jobs in the start-up companies, an increase of 4% compared to 2021.
Openings and Closings
In the years 2011-2022, 8,859 startups were opened, and 4,519 of them closed or suspended their activities. In the years 2011-2015, there was an average annual increase of 4% in the balance of startup companies. However, as of 2016, there was a decrease in the balance.
Monthly Salary for Full-Time Position
The average monthly salary for a full-time position in the startups in 2022 was 25,100 Shekels, an increase of 9% compared to 2021 (22,900 Shekels), and twice the average monthly salary for a salaried position in the economy as a whole (11,800 Shekels). In startup companies that employ at least 50 salaried positions, the average monthly salary per salaried position is 28,200 Shekels.
Geographical Distribution
Most startup companies in Israel are concentrated in the Tel Aviv and Central districts. 73% of startup companies and 79% of full-time salaried jobs are concentrated in these districts. In 2022, 2,113 start-up and charter companies operated in the Tel Aviv district. The average monthly wage for a salaried position was 27,200 Shekels, 1.4 times that of the southern district where the average monthly wage was 19,300 Shekels.
Capital Raising
In 2022, startup and mature companies raised about $19 billion, a decrease of 45% compared to 2021 in which $34.2 billion was raised. In the Seed & Pre-Seed fundraising type, which refers to the early development stages of the recruiting companies, there was a 28% increase in capital raising compared to 2021.
