Israel

Introduction

With a notable concentration of tech companies, Venture Capital firms and research institutes, Israel is one of the top country for VC activity per capita globally, and is a notable hotspot for cyber and security tech.

Israel is home to over 4.5k+ funded startups which raised $12.9B in VC investment in 2022. More than 100 unicorns were born out of the country, all of which can be explored here on the platform.

Venture Capital

While investment fell in Israel by 45% between 2021 and 2022, the latter year still stands as the second best year on record with over $12B raised, largely due to robust venture capital activity witnessed in the first half of the year.

By stage

Early stage

At early stage, VC investment has remained fairly stagnant in the last five years.

Access early-stage funding rounds into Israeli startups here on the platform.

Breakout stage

Access breakout-stage funding rounds into Israeli startups here on the platform.

Scaleup stage

Access scaleup-stage funding rounds into Israeli startups here on the platform.

Distribution of VC investment into HQ and relocated Israeli startups

Homegrown companies which moved their headquarter outside of Israel, such as Trax and Claroty, were mostly responsible for the 2021 surge in VC investment.

By industry

Security, Fintech and Health are top funded industries since 2020, with Fintech growing the fastest among them in the last five years.

VC allocation by industry: Israel vs Global

A well known hotspot for cyber innovation, Security is the most funded category in Israel, over-indexing compared to the global average.

Discover the VC investment trends by industry in Israel here on the Dealroom platform.

Investors

Most active investors into Israel

Explore the data for the most active investors into the Israel startup ecosystem as well as the most active Israeli investors here on the platform.

International comparisons

Leading on a per capita basis

Israel ranks 9th globally and 3rd in EMEA for total investment raised between 2018 and 2022. On a per capita basis, Israel is a global leader, ranking 2nd worldwide and 1st within the  EMEA region.

Country level benchmarking

Compare the Israel startup ecosystem globally in the table below or here on the Dealroom platform.

City level benchmarking

Tel Aviv ranks amongst the 25 largest startup ecosystems worldwide in recent years.

Unicorns

Israel has produced the 4th highest number of unicorns worldwide and the 2nd highest number in EMEA.

Israeli unicorn talent is fostering the next generation of startups in Israel and abroad.

Many Israeli unicorns, such as IronSource and Gett, have been instrumental in driving subsequent waves of entrepreneurship, as staff alumni go on to found more startups in Israel and abroad.

More than 100 unicorns were born out of the country, all of which can be explored here on the platform.

Universities and Research

The Weizmann Institute of Science ranks as the top university in EMEA by number of active patents.

Learn more about Israeli startup ecosystem institutions seen below here on the platform.

Spotlight: Tel Aviv

Tel Aviv is one of the fastest growing mature ecosystem globally.

Tel Aviv-based startups raised $7.2B in 2022, falling short of 2021 investment levels, but nearly double 2020’s total.

Tel Aviv ranks 3rd in EMEA for total VC investment raised in between 2018 and 2022.

Tel Aviv is the top hub for Security VC investment in EMEA and 3rd worldwide.

Tel Aviv ranks 6th globally by total number of unicorns.

Related Content

Reports: Tel Aviv ecosystem report 2023
Reports: Europe and Israel’s startup founder factories – the founder journey
Reports: Browse all Israel ecosystem reports on Dealroom
Dealroom Data: Explore all 4.5k+ funded startups
Dealroom Data: Explore all funding rounds in Israeli startups