Technology is growing faster than any other industry in the nation of Israel. Israel has developed a culture of innovation and this is being seen in many different sectors, such as AI, medical cannabis, healthcare, foodtech and agriculture.
The country attracts many venture capitalists and Tel Aviv ranks fifth among the top 10 global tech hubs, according to an Expert Market report.
In Tel Aviv, startups are encouraged and they have become the core of the high-tech industry, with support being supplied through a network of angel investors and venture capitalists.
The government gives its support to startups too by allowing tax relief for companies venturing in digital businesses, data and technology. Despite its small size, Israel also has a robust supply of talent in technology. Here are some of the growing sectors.
- Artificial intelligence
AI is a major trend in high-tech industries in Israel and many AI companies have been established. AI and machine learning technologies are making their presence felt in sectors such as finance, transportation, real estate, automotive and advanced manufacturing. AI capital raising is constantly growing, both in the number of deals and amounts.
- Medical cannabis
Medical cannabis is attracting investment in Israel. Canada, one of the largest cannabis exporters in the world, is interested in Israeli technologies used in the growth, development and distribution of cannabis. Israeli startups are working to make medical use more effective. Many cannabis-related initiatives are taking place and the Israeli government allows local businesses to export medical cannabis.
- Digitized healthcare
The local healthcare system in Israel is already digitized and the government has approved the building of a medical database that will be accessible to local startups. This will help to improve health service in Israelis and make the local market appealing to businesses.
Startup incubators and healthcare-dedicated venture funds are growing in number. Mobile hardware is being developed that will help to take healthcare out of hospitals and clinics.
An example of innovation in healthcare is seen in the development of an AI platform that can read medical scans. It can detect anomalies and give accurate diagnoses.
Medical tech company, Zebra Medical Vision, was founded in 2014 and raised $20 million in seed funds. It collaborates with Google Cloud to enable medical professionals to access its service and they pay one U.S. dollar for each scan.
- Agricultural technologies
Israeli startups are developing new crop breeds and new farming techniques. The new farming methods are data-driven and some companies are partnering up with Kibbutzim who see agricultural tech as a way to join the tech boom and strengthen their finances.
If you are one of the U.S. companies involved with tech companies in Israel, you may need some help with tax issues. An enrolled agent is able to represent you before the IRS for any tax issues, such as audits or collections. Education for enrolled agents is available online for those who see a future in this profession.
In 218 two Israeli food and beverage companies were sold for a total of more than $9 billion. Apart from these mega-deals, local food manufacturers and multinationals are partnering up with a growing number of foodtech startups. These startups are focusing on innovations such as meat alternatives, packaging technologies and food printing.
Israel may be a small country but it is recognized internationally for its high-tech industry and its status keeps increasing. The growth can be attributed to a number of factors, such as the desire to make up for what the country lacks in natural resources, the culture of innovation, the robust talent available and the support from the government.