TEL AVIV STARTUP ECOSYSTEM RANKS 2ND IN EUROPE, MIDDLE EAST AND AFRICA
According to Dealroom, a global data platform for intelligence on startups, innovation, high-growth companies, ecosystems and investment strategies, Tel Aviv’s tech hub came in second place in 2022 as a home for startups with the highest enterprise value, right behind London and ahead of Paris amongst Europe, Middle East and African cities. In Asia and Oceania Tel Aviv came in fifth and in the Americas seventh.
Their latest report showed that Tel Aviv startups reflected a combined enterprise value of $393 billion in 2022 and that since 2018 the city’s ecosystem has grown 3.5 times in value, outpacing the Bay Area and New York as well as Beijing, London and Paris.
Businesses headquartered in Tel Aviv raised $6.9 billion in venture capital investment in 2022, less than in 2021, but almost double that of 2020. Tel Aviv ranked third in terms of total VC investment in the Europe, Middle East and Africa (EMEA) region in 2022, right behind London and Paris but ahead of Berlin.
Cybersecurity remains a strong suit of the city’s services with startups raising $1.7 billion, almost 20% of the total funds raised, ranking it in third place worldwide for cybersecurity investments, just behind the Bay Area and New York and ahead of London and Beijing.
Worldwide, Tel Aviv placed eighth for early stage funding and sixth for breakout stage rounds.
According to Adam Valkin, managing director at US VC firm General catalyst “Tel Aviv has been transformed from an important city to a top-priority city for many major venture firms” and “The secret sauce is the highly energetic and collaborative ecosystem of repeat founders, angel investors, venture firms, and marquee tech companies”
Tel Aviv also has the fifth highest number of unicorns (startups that reached a $1 billion valuation) worldwide, with 95 as of 2022. According to Davor Hebel, managing partner at Eight Roads Ventures, “Israel has moved from being a ‘startup nation’ to being a ‘scale-up nation’” and that “this makes Israel a great place to invest.”
Source: Times of Israel.
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