Why Israel Is A Hot Spot For Startups

Right now, Israel’s startup scene is absolutely buzzing. Last week was a week that can truly sum up the tech environment in Israel. In the past week, 4 companies were acquired; Amazon’s (AMZN) purchase of Annapurna Labs for $370m; Connecticut’s Harman International Industries (HAR) purchase of Red Bend Software for $200m; DropBox’s purchase of CloudOn for $150m; and Microsoft’s (MSFT) purchase of Equivio for $50m. Add to that $130m invested by an assortment of multinationals in local startups and it becomes apparent that the week represented $900m of foreign investment into the country.

As you can see when it comes to producing startups, the nation is only second to Silicon Valley, brimming with companies in ad tech (from native and programmatic to video and mobile).

Looking for innovative and cutting edge companies in 2015? Israel is the place to be.

Small, but mighty.

It may be considerably tiny in terms of size and population, but Israel is actually a giant when it comes to the tech industry. The nation has roughly 7.6 million people and approximately 4,800 startups (100 of which are listed on the NASDAQ). It hosts more startups and attracts more venture capital per person than anywhere else in the world (compared to $70 per person in the U.S., Israel pulls in $170 per person in venture capital investment).

Talent and resources.

In Israel, there exists a tightly-knit startup ecosystem, creating a valuable community of entrepreneurs and highly efficient dream teams. With support from top universities, the armed services, and government programs, the nation has fueled innovation and developed strong STEM talent. As Dan Senor and Saul Singer wrote in Start-Up Nation: The Story of Israel’s Economic Miracle, citizens leave the military with hands-on experience with next-gen technology, training in teamwork and leadership, and a desire to continue to serve the country in the tech industry.

Thanks to it’s entrepreneurial mindset and engineering talent, Israel attracts tech giants from around the globe. Companies like Apple, Microsoft, and IBM have set up shop here, frequently buying up startups and relocating acquisitions to their R&D labs.

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Susan Miller 5 years ago Member's comment

I had no idea. Impressive for such a small country! Tell me, will your summit be viewable over the web? I'm not in Israel.

Eli Mandelbaum 5 years ago Author's comment

Indeed, many people aren't aware of what comes out of Israel and the technological contributions it brings to the world. In regards to the summit, I hope to stream it live. Will be posting updates on that in the coming months.

Susan Miller 5 years ago Member's comment

Thank you, I'd likely watch.

Joel Santiago 5 years ago Member's comment

I've always been amazed at the companies that come out of Israel. Is it true the MP3 player and camera pill were invented there?

Eli Mandelbaum 5 years ago Author's comment

As am i. You are correct on the Pill cam, however the MP3 was developed by others outside of Israel.