Startups in Israel - statistics & facts
Choose a region:
Israel ranked first globally in terms of its number of technology unicorns per capita. As of 2025, the country’s startup scene contained 90 active tech unicorns, and raised billions of dollars in investments annually. These are indicators of an exceptionally well performing startup ecosystem, which forms the basis of the country’s robust technology industry. While Israeli startups derive benefits from their interaction with global tech behemoths such as Amazon, Google, and Facebook, their success is often explained by less visible, cultural factors. These include the quintessentially Israeli brazenness, a dismissal of formalities, and a casual approach to challenges and failure. The nation's entrepreneurial spirit is palpable in many sectors of society. Most notable is within its leading universities and the military, which encourage entrepreneurial initiative, and serve as important ‘founders factories’.
Even with geopolitical unrest and global market swings, the Israeli startup ecosystem has proven to be adaptable and resilient. The enduring strength of this sector will continue to be an essential measure of the overall state of the Israeli economy in general.
Recovering investment market
A vital element in Israel's startup machinery is its prolific venture capital (VC) market. From the lucrative acquisition of Chromatis Networks in the year 2000 for 4.5 billion U.S. dollars, to the 32 billion U.S. dollar acquisition deal of Wiz in 2025, despite the risky nature of venture investment, many have reaped substantial returns from their Israeli portfolios. In 2024, tech startups raised over 12.5 billion U.S. dollars from capital markets, reflecting a 28 percent increase compared to the year prior. This marketed a reversal of a two-year downtrend which began after the boom year of 2021. Most of this growth came from the cybersecurity vertical, which accounted for over a quarter of investment dollars that year. Another growth area in 2024 was the emerging generative AI cluster, which raised over 1.5 billion U.S. dollars in venture funding.The future of Israeli startups
Over the past decade, Israel has witnessed a contraction in the number of new startups founded, at a compound annual decline of approximately 9 percent. Paradoxically, during the same period, investments have swelled at a compound annual growth rate exceeding 11 percent. This pattern implies that fewer startups are enjoying greater access to capital, thereby extending their survivability and increasing their odds of reaching maturity. However, the flip side of this dynamic is that larger, well-funded companies are outcompeting fledgling startups for talent and resources, accounting for their dwindling numbers. Israel's Innovation Authority expressed concern that this trend could choke the development of future billion-dollar ideas, and directed several million U.S. dollars in seed grants to startups in more challenging sectors. Perhaps counterintuitively, the falling number of new startups showcases the industry's success and maturation, as demonstrated by the increasing number of tech unicorns emerging in the country annually.Even with geopolitical unrest and global market swings, the Israeli startup ecosystem has proven to be adaptable and resilient. The enduring strength of this sector will continue to be an essential measure of the overall state of the Israeli economy in general.
