Israel’s startup success has led to the country being called a “startup paradise.” Tel Aviv is where all of the country’s great startups go, and with the highest number of per capita startups in the world, many entrepreneurs are making their dreams come true in Israel.
But what’s making the sector such a success?
A smaller country is a major benefit, according to some entrepreneurs. The smaller geography allows entrepreneurs to have a better relationship with their target market. One entrepreneur claims that his company, which manufactures agricultural products, can quickly go to farmers and get their feedback on products.
Easy access allows entrepreneurs to connect with other business leaders, supplies and consumers.
It’s a benefit to startups, but there are deeper-rooted benefits that are helping propel the startup culture
Israel is isolated, and a lot of the innovations of the past (e.g. the water systems), were created out of a necessity. There’s a lot of “survival” that goes into the technology being created. Agricultural products, for example, are starting to become a popular startup choice because the sector allows for faster, more efficient product growth tailored to the region.
Research and development has poured into many sectors thanks to the “survival” aspect of being an isolated country. The trend has led to a new mentality, too, with Israel maintaining its mentality to find new solutions and innovations in the market.
Many of the young business leaders in Israel don’t want to work for others – they want to innovate their markets.
High technology has also helped younger generations start to understand the tech sector. The requirement to serve in the army exposes many youngsters to high levels of technology that they wouldn’t be exposed to in other countries.
Confidence is built from their experience in the army, so entrepreneurs know that they have the ability to bring their innovations to life.
Israelis aren’t afraid to use the help of others, such as InventHelp, to bring their innovations to life.
It’s a cumulative effect that has helped push many of these entrepreneurs forward with their ideas. It’s a snowball effect, with many people following in the footsteps of their friends and family members. Israelis will also help support other Israelis, making the startup culture stronger in the process.
And there’s also the benefit of there being a substantial number of programs available in Israel that aren’t available in other countries. Israel has over 30 programs that are geared towards startups that help them secure funding.
Exports remain the top priority for many of Israel’s startups, and this also has its own benefits. Companies know how to get their product to the masses.
There’s also an active market of large corporations, including Facebook, IBM and Google, that are keeping a close eye on the sector. The companies are acquiring startups and helping fund some of the most promising startups.
In 2014, there were $15 billion worth of exits in the startup sector alone, and many startups begin with the hopes of an early exit, tailoring their technology to the needs of many large-scale businesses.