startup nation

Israel’s Startup Nation Atmosphere Fueling the Rise in Tech

The republic of Israel is solidifying itself as the world’s most favorable location for startups, especially in the tech industry. In 2021, $4 billion was raised by 57 companies that went public which is nearly triple the amount – $1.7 billion – raised by IPOs in 2020. Also, in 2021, Israel received 84% of MENA’s total VC funding. The startup nation is home to R&D centers for top tech companies such as HP, Intel, Microsoft and Samsung, to name a few. 


A huge reason for this recent escalation is the country’s 30-plus grants and tax incentives for R&D including conditional grants, tax exemption and reduced tax rates. They had a $70 million program, launched in 2022, which promoted entrepreneurship among Arab communities.  They also allowed over 40 R&D grants to businesses including MNCs, NGOs, research institutions and individual entrepreneurs. 


The Abraham Accords have also played a role in this story. If this current four-nation agreement between Israel, US, UAE and Bahrain grows to 11, it could result in over $1 trillion of activity over the next decade. 


10% of the world’s unicorns are from Israel with the most noteworthy startups being Staircase, Mobileye and Ermetic.

How Israel Has Emerged on the Tech Scene