Tel Aviv has the highest number of per capita startups in the world and is where most of Israel’s great startups are located. In fact, Israel’s large startup success rate has led to Israel being considered a “startup paradise.” If you take just a moment to look at the life that you are living, the chances are that you are benefiting from an Israeli startups work. If you own a smartphone device, are involved in Internet marketing, work in the healthcare industry or the pharmaceutical industry, among others, then the chances are that the goods and services you use on a regular basis have Israeli technology behind them. And there are several reasons why Israel is such a prosperous country when it comes to entrepreneurship and startup success.
Israeli startups today are fortunate to benefit from an extensive variety of programs and initiatives that are available in Israel which are not available in other countries. For example, Israel has in place over 30 programs that are tailor-made for startups to help them secure funding for their businesses.
One of the benefits of doing business in Israel is its size. Israel is a small country, and as such, it is much easier for entrepreneurs to conduct market tests, and to determine the needs of their target market. Identifying and solving the problems of your target customer is one of the core elements of entrepreneurship, and the smaller size of Israel reduces the cost and the time of this process. By understanding and resolving the problems of their customers faster, Israeli companies can now go to market more quickly with a product that serves a market need. If there is a shift in demand for their product or service, it is easier to pick up on these changes and then pivot accordingly. This ease of access also enables entrepreneurs to be in touch with their business partners, suppliers, in addition to their consumers.
Advanced technology has also helped younger generations understand the tech sector or to apply that technology to other industries. From computer coding, app development, to social media marketing, young Israelis are utilizing these new technologies to provide their companies with a comparative advantage.
In fact, Israel’s startup success has attracted some of the biggest and most successful companies of the world to start acquiring Israeli startups. This list of companies includes AT&T, Twitter, IBM, Oracle, Google, Facebook, Microsoft, and Amazon among many others. For example, Waze, which is a GPS app, was founded in Israel and purchased by Google for $1.3 billion back in 2013. While on the other hand, Intel bought Mobileye for $15.3 billion. Celebrities from around the world also use Israeli founded services all the time, such as Paris Hilton, who uses escapex, a New York based, Israeli founded company, as a way to monetize her social media followings.
Israel is a thriving hub of research and development and entrepreneurial success, and this is contributing to their startup’s success. Tech incubators and accelerators are also becoming more readily available in Israel, and this adds to Israel having the perfect environment for the startup lifecycle.