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.