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Tel Aviv Dips To 7th Place In Global Startup Ecosystem Report

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Tel Aviv Dips To 7th Place In Global Startup Ecosystem Report

Tel Aviv has slipped to seventh place in the Global Startup Ecosystem Report (GSER) of the startup genome for 2021. The report is an annual report on global ecosystems and sub-sectoral trends published since 2012. Last year, Tel Aviv and Jerusalem were ranked together. In sixth place in the report. In 2019, Tel Aviv was also ranked sixth.

This year’s report, like last year, reflects the impact of COVID-19 on the global startup economy, but ecosystems continued to thrive despite new diversity in the ongoing epidemic. 91 ecosystems created unicorns in 2020 and despite American companies dominating them, China, Canada, India, Germany, Israel, Britain and France will produce between 7 and 10 unicorns in the first half of 2021, according to Crunchbase, the report said.

Tel Aviv skyline at night.  Photo using deposit photos
Tel Aviv skyline at night. Photo using deposit photos

The Global Survey conducted by Startup Genome maps the global startup industry in 140 cities around the world. Last year, the Tel Aviv-Jerusalem ecosystem connected to the city of Los Angeles, while this year Los Angeles took 6th place and Tel Aviv dropped to 7th place.

Meanwhile, the top five startups in the world “maintained their rule at the top” with Silicon Valley of California in first place, followed by New York and London in second place. Beijing and Boston followed in fourth and fifth place. The top 10 list ended in Shanghai, Tokyo and Seattle.

See also: Israeli technology companies break funding records, raising $ 11.9 billion in the first half of 2021

The report once again ranked the world’s top 30 ecosystems of start-ups plus deputies, as well as 100 evolving ecosystems.

Although it dropped to 7th place, Tel Aviv continued strong among the top 30 ecologies in the world of start-ups, ranking at the top level among success factors such as performance, funding, experience, connectivity and market reach.

Tel Aviv earned high marks in funding and market reach as it continues its impressive year, breaking funding records only in the first three months of the year, More than any country in Europe.

Tel Aviv

The report calls for Tel AvivOne of the world’s leading cities for innovation and technology.A closer look at the “beating heart of the start-up nation” says that Tel Aviv boasts one startup for every 154 residents, the highest ratio in the world. Israel’s high-tech capital is home to “creative and experienced talent, a combination of local and international investors. And 2,750 startups. “

The city also hosts 115 foreign R&D centers and a “huge variety” of multinational companies that use the city as a base for innovation. Giants like Google, Microsoft, Amazon, Facebook, Apple, Ford, Nike and many more have offices in Tel Aviv and they enjoy the state’s high spending On R&D, the second highest level of R&D expenditure per capita in the world.

Aerial view of Tel Aviv and the City Hall.  Photo: Courtesy of Barak Brinker / Tel Aviv-Yafo Municipality
Aerial view of Tel Aviv and the City Hall. Photo: Courtesy of Barak Brinker / Tel Aviv-Yafo Municipality

Tel Aviv has recently experienced a spike in venture capital funds, only improving conditions for emerging companies and the ecosystem has seen a 25% increase in capital raised in 2020, with over $ 6.8 billion being poured into start-ups last year. This doubled the number of unicorns in Tel Aviv. According to the report, it currently has more than 20 private companies worth more than $ 1 billion.

Local success stories include Monday.com, which raised $ 150 million from Zoom and Salesforce in June 2021 as part of its offering, and startup Moovit for Mobility as a Service, which was acquired by Intel for a cool $ 900 million in May 2020.

“Tel Aviv has shown tremendous growth and maturity with many startups developing into scallops, unicorns and public companies,” said Yifat Oron, senior CEO and head of the Tel Aviv office in Blackstone, an alternative investment management firm in the United States.

AI, Big Data and Cyber ​​Security

Ta Aviv took first place among the top performances in the Middle East and North Africa (MENA) identified in a specific region, although the big news was that three UAE ecosystems were ranked in the top ten. Artificial intelligence and big data is the leading sub-industry in the field of MENA with $ 3 billion invested in early rounds and $ 8 billion worth of output between January 2018 and June 2020, the report said.

Tel Aviv ranks seventh in the world in the number of artificial intelligence start-ups, the report said, with 714 companies and a total of $ 3 billion invested in 2020. According to the report, a new artificial intelligence program requires $ 1.6 billion to further expand the sub- The sector over the next five years. It has already opened initial funding of $ 168.2 million

The report highlighted ZenCity, an AI solution for governments, which raised $ 30 million in June 2021, and the Israeli digital adoption platform WalkMe, which raised $ 286.75 million in initial public offering (IPO).

A person on a laptop.  Courtesy of Pixabay
A person on a laptop. Courtesy of Pixabay

The startup’s genome report said 2020 was a record year for Tel Aviv cyber security companies, which raised a total of $ 2.9 billion. In the first quarter of 2021 alone, the sub-sector raised $ 1.5 billion across 17 deals. The report highlighted the Israeli corporate and security network company Cato Networks, which raised $ 332 million, the cloud network infrastructure company Wiz, which raised $ 350 million, and an original security company, Aqua Security, which raised $ 265 million.

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