Tel Aviv is commonly regarded as the economic and cultural capital of Israel. Due to the city's cosmopolitan atmosphere and the constant innovation approach, Tel Aviv has established itself as a local and international startup hub. According to the IVC Research Center, the number of startups in Tel Aviv amounted to 1,363 in 2021. This was a slight decrease compared to the previous year. However, since 2017, there has been an upward trend in the number of startups in this central city. In 2022, Startupblink ranked Tel Aviv first in its list of  best cities for startups in Israel, with a significantly higher score than other prominent cities in Israel, such as Jerusalem and Haifa. 

There is a diverse startup scene in Tel Aviv 

One of the characteristics of Tel Aviv as a hub for startups is the high diversity within the technology companies that operate there. Companies from various industries, such as cyber, IoT, FinTech, food tech, and more, are located in the city. Cyber ​​security is a particularly crucial industry in the technological sector in Tel Aviv. In 2021, the  number of cyber company exists in Tel Aviv in Tel Aviv reached 23, which was more than any other industry within the sector. Furthermore, due to technological diversity, international companies, such as Google and Microsoft, have a significant presence in the city. In 2021, investment entities accounted for 43 percent of the  multinational corporations in Tel Aviv, making this type of international company the most common. 

Israel's advanced technology sector continued to be a major driver of the country's economy in 2023, employing over 440,000 people. Among the various technology industries, computer programming ranked first in job creation, with 227,500 workers. It was followed by computer and electronics manufacturing with 79,700 employees. The important position of local technology is further underscored by its world-leading investment in research and development, with 6 percent of GDP dedicated to R&D in 2022. Global startup ecosystem leadership Israel has grown to become a global center for tech startups, ranking third worldwide in 2024, according to StartupBlink's Global Startup Ecosystem Index. This puts Israel behind only the United States and United Kingdom, highlighting its outsized impact given its relatively small size. Within Israel, Tel Aviv stands out as the primary hub, ranking first in the country and ninth globally among the best cities for startups. Investment landscape picking up? Israeli venture capital experienced a significant slowdown in 2023, with total investment falling below 7 billion U.S. dollars, the lowest level since 2018. This marked a decline of 73 percent from the 26 billion U.S. dollar peak in 2021. Several factors contributed to this poor performance, including a global slowdown in venture capital funding, as well as local impacts such as a contentious government plan to reform the judicial system and the outbreak of the Israel-Hamas war. Early 2024 data indicate this negative trend may be turning.

Israel Turnover: TASE: Technology: Investments in High Tech data was reported at 0.500 ILS mn in Jun 2018. This records a decrease from the previous number of 0.900 ILS mn for May 2018. Israel Turnover: TASE: Technology: Investments in High Tech data is updated monthly, averaging 3.100 ILS mn from May 2011 (Median) to Jun 2018, with 86 observations. The data reached an all-time high of 139.900 ILS mn in Dec 2011 and a record low of 0.300 ILS mn in Oct 2016. Israel Turnover: TASE: Technology: Investments in High Tech data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z004: Tel Aviv Stock Exchange: Turnover.

The Israeli data center market, fueled by robust economic growth, a thriving tech sector, and increasing cloud adoption, is experiencing significant expansion. While precise market size figures for 2019-2024 aren't provided, a logical estimation, considering the global data center market's growth trajectory and Israel's position as a regional tech hub, suggests a substantial increase over the past five years. The Tel Aviv hotspot, a major center for innovation and investment, contributes significantly to this growth, attracting hyperscale operators and colocation providers. The market is segmented by data center size (large, massive, medium, mega, small), tier type (Tier 1 & 2, Tier 3, Tier 4), and end-user sectors, with BFSI, cloud providers, e-commerce, and technology companies being key drivers. Growth is also driven by government initiatives to improve digital infrastructure and the increasing demand for resilient and secure data storage solutions. The market faces constraints such as limited land availability in prime locations like Tel Aviv, high energy costs, and competition from neighboring countries. However, the ongoing investment in renewable energy sources and the strategic importance of Israel's location are mitigating these factors to a degree. The forecast period (2025-2033) anticipates continued expansion, with a projected CAGR (assuming a reasonable CAGR of 15% based on global trends and Israel's growth) contributing to a considerably larger market by 2033. The increasing adoption of edge computing, the expansion of 5G networks, and the rise of the Internet of Things (IoT) will all contribute to market growth in the coming years. The diverse range of companies operating within the sector, encompassing both international players and local providers, further underscores the dynamic and competitive nature of the Israeli data center market. This competitive landscape is likely to result in innovations and improved services, accelerating overall market expansion. Recent developments include: July 2022: Berkshire Partners announced to pay more than USD 215 million to acquire 49% stake in MedOne. The company was evaluated at NIS 1.5 billion (USD 430 Million).August 2021: EdgeConneX announced its agreement to acquire Global Data Center (GDC), an Israeli data center operator based in Herzliya district. Once completed, the acquisition would bring two new facilities into the EdgeConneX global data center platform, including GDC’s highly secure underground facilities in Herzliya and Petah Tikva, near Tel Aviv.August 2020: Bynet Data Communications was building an underground data center for Oracle Corporation in Jerusalem, Israel. The facility was a 14,000 sq m (460,000 sq ft) bunker located below five parking levels and a 17-story building in the city’s Har Hotzvim tech hub. The data center would extend over four floors at 50 meters (160 feet) below ground level.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

According to the IVC Research Center, in 2021, investment entities accounted for 43 percent of the multinational corporations (MNC) in Tel Aviv, in Israel. This type of international company constituted the most common one in Tel Aviv, followed by R&D centers (38 percent), and accelerators or incubators (11 percent). Tel Aviv is known worldwide as an international hub for high-tech companies, especially startups.

Tel Aviv Stock Exchange: Index: TA Tech-Elite data was reported at 737.980 NA in Apr 2025. This records an increase from the previous number of 716.560 NA for Mar 2025. Tel Aviv Stock Exchange: Index: TA Tech-Elite data is updated monthly, averaging 523.935 NA from May 2014 (Median) to Apr 2025, with 132 observations. The data reached an all-time high of 824.570 NA in Dec 2021 and a record low of 302.900 NA in Oct 2014. Tel Aviv Stock Exchange: Index: TA Tech-Elite data remains active status in CEIC and is reported by Exchange Data International Limited. The data is categorized under Global Database’s Israel – Table IL.EDI.SE: Tel Aviv Stock Exchange: Monthly.

In 2021, the number of scaleup companies in Tel Aviv in Israel amounted to 228. This was a significant rise compared to the previous year. The number of companies generally increased during the observed period, except for a decline in 2019 and 2020.

Israel Index: TASE: Sector: TA Technology data was reported at 580.400 31Mar2011=292.04 in Oct 2018. This records a decrease from the previous number of 597.220 31Mar2011=292.04 for Sep 2018. Israel Index: TASE: Sector: TA Technology data is updated monthly, averaging 367.010 31Mar2011=292.04 from Apr 2011 (Median) to Oct 2018, with 91 observations. The data reached an all-time high of 602.710 31Mar2011=292.04 in Aug 2018 and a record low of 252.110 31Mar2011=292.04 in Aug 2011. Israel Index: TASE: Sector: TA Technology data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z001: Tel Aviv Stock Exchange: Index.

Israel Market Capitalization: TASE: Technology: Investment in High Tech data was reported at 124.900 ILS mn in Jun 2018. This records a decrease from the previous number of 125.200 ILS mn for May 2018. Israel Market Capitalization: TASE: Technology: Investment in High Tech data is updated monthly, averaging 466.100 ILS mn from May 2011 (Median) to Jun 2018, with 86 observations. The data reached an all-time high of 993.500 ILS mn in May 2011 and a record low of 111.600 ILS mn in Dec 2016. Israel Market Capitalization: TASE: Technology: Investment in High Tech data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z003: Tel Aviv Stock Exchange: Market Capitalization.

Israel Market Capitalization: TASE: Technology: Clean Technology data was reported at 13,183.700 ILS mn in Jun 2018. This records an increase from the previous number of 12,775.100 ILS mn for May 2018. Israel Market Capitalization: TASE: Technology: Clean Technology data is updated monthly, averaging 8,928.400 ILS mn from Nov 2012 (Median) to Jun 2018, with 68 observations. The data reached an all-time high of 15,227.100 ILS mn in Jan 2018 and a record low of 3,181.400 ILS mn in Nov 2012. Israel Market Capitalization: TASE: Technology: Clean Technology data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z003: Tel Aviv Stock Exchange: Market Capitalization.

Turnover: TASE: Technology: Cleantech data was reported at 272.700 ILS mn in Oct 2018. This records an increase from the previous number of 222.400 ILS mn for Sep 2018. Turnover: TASE: Technology: Cleantech data is updated monthly, averaging 217.050 ILS mn from Nov 2012 (Median) to Oct 2018, with 72 observations. The data reached an all-time high of 745.400 ILS mn in May 2018 and a record low of 33.000 ILS mn in Jul 2013. Turnover: TASE: Technology: Cleantech data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z004: Tel Aviv Stock Exchange: Turnover.

Israel Turnover: TASE: Warrant and Option: Technology: Investments in High Tech data was reported at 0.000 ILS mn in Jun 2018. This stayed constant from the previous number of 0.000 ILS mn for May 2018. Israel Turnover: TASE: Warrant and Option: Technology: Investments in High Tech data is updated monthly, averaging 0.000 ILS mn from May 2011 (Median) to Jun 2018, with 86 observations. The data reached an all-time high of 0.200 ILS mn in Mar 2016 and a record low of 0.000 ILS mn in Jun 2018. Israel Turnover: TASE: Warrant and Option: Technology: Investments in High Tech data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z004: Tel Aviv Stock Exchange: Turnover.

Israel's academic institutions are making significant strides in artificial intelligence (AI) research, with the Israeli Institute of Technology (Technion) leading the pack. As of November 2024, researchers from the Technion released an average of **** AI-related publications, ranking **** globally in this measure. The institute was followed by Tel Aviv University and the Hebrew University of Jerusalem. This robust academic output and high concentration of AI-related talent underscores the country’s prominence in the AI field. Is AI academic research in decline? While Israeli universities continue to produce notable AI research, the overall the number of AI publications has declined. In 2023, the country saw a decline in AI academic articles across various subfields, including computer vision, artificial neural networks, natural language processing, and robotics. Specifically, computer vision papers decreased by almost ** percent from the previous year. Still, in terms of quality, publications from Israel were among the most cited articles in 2023. Investment and industry dynamics The AI industry in Israel remains robust, with almost ***** active AI companies as of 2023. However, recent years have seen a slowdown in growth and investment. In 2023, investment in AI startups in Israel reached *** billion U.S. dollars, marking a significant decrease from previous years. Despite this, international tech giants continue to show interest in Israeli AI companies, with notable acquisitions made by major corporations like NVIDIA, Google, and Salesforce in 2023.

Israel Index: TASE: Sector: TA Global Blue Tech data was reported at 377.720 31Dec1998=212.61 in Oct 2018. This records a decrease from the previous number of 395.990 31Dec1998=212.61 for Sep 2018. Israel Index: TASE: Sector: TA Global Blue Tech data is updated monthly, averaging 370.360 31Dec1998=212.61 from Feb 2017 (Median) to Oct 2018, with 21 observations. The data reached an all-time high of 395.990 31Dec1998=212.61 in Sep 2018 and a record low of 353.200 31Dec1998=212.61 in Aug 2017. Israel Index: TASE: Sector: TA Global Blue Tech data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z001: Tel Aviv Stock Exchange: Index.

Israel Tel Aviv Stock Exchange: Index: TA-Communication and Information Technology data was reported at 1,666.040 NA in Apr 2025. This records an increase from the previous number of 1,651.320 NA for Mar 2025. Israel Tel Aviv Stock Exchange: Index: TA-Communication and Information Technology data is updated monthly, averaging 956.305 NA from Jan 2012 (Median) to Apr 2025, with 160 observations. The data reached an all-time high of 1,772.350 NA in Feb 2025 and a record low of 372.800 NA in Jul 2012. Israel Tel Aviv Stock Exchange: Index: TA-Communication and Information Technology data remains active status in CEIC and is reported by Exchange Data International Limited. The data is categorized under Global Database’s Israel – Table IL.EDI.SE: Tel Aviv Stock Exchange: Monthly.

Israel Tel Aviv Stock Exchange: Index: TA-Technology data was reported at 1,256.440 NA in Apr 2025. This records an increase from the previous number of 1,222.470 NA for Mar 2025. Israel Tel Aviv Stock Exchange: Index: TA-Technology data is updated monthly, averaging 565.110 NA from Jan 2012 (Median) to Apr 2025, with 160 observations. The data reached an all-time high of 1,295.800 NA in Dec 2021 and a record low of 285.920 NA in Jan 2012. Israel Tel Aviv Stock Exchange: Index: TA-Technology data remains active status in CEIC and is reported by Exchange Data International Limited. The data is categorized under Global Database’s Israel – Table IL.EDI.SE: Tel Aviv Stock Exchange: Monthly.

Israel Turnover: TASE: Technology: IT Services data was reported at 188.600 ILS mn in Jun 2018. This records a decrease from the previous number of 362.100 ILS mn for May 2018. Israel Turnover: TASE: Technology: IT Services data is updated monthly, averaging 97.550 ILS mn from Nov 2012 (Median) to Jun 2018, with 68 observations. The data reached an all-time high of 777.400 ILS mn in Aug 2017 and a record low of 26.700 ILS mn in Oct 2014. Israel Turnover: TASE: Technology: IT Services data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z004: Tel Aviv Stock Exchange: Turnover.

Israel Market Capitalization: TASE: Technology: Software and Internet data was reported at 33,618.300 ILS mn in Jun 2018. This records an increase from the previous number of 33,119.800 ILS mn for May 2018. Israel Market Capitalization: TASE: Technology: Software and Internet data is updated monthly, averaging 22,059.400 ILS mn from Nov 2012 (Median) to Jun 2018, with 68 observations. The data reached an all-time high of 33,618.300 ILS mn in Jun 2018 and a record low of 15,314.500 ILS mn in Oct 2013. Israel Market Capitalization: TASE: Technology: Software and Internet data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z003: Tel Aviv Stock Exchange: Market Capitalization.

This statistic presents the leading Fintech (Financial Technology companies) locations worldwide in 2014, by value of investment. The term Fintech is used to describe the start-up innovative companies operating in the financial sector, which provide modern technology solutions to financial services companies. It was found that Silicon Valley in the United States was the leading Fintech location worldwide, as it attracted approximately 1.5 billion U.S. dollars of investments in Financial Technology companies. Other cities with substantial Fintech activity and which can develop into significant Fintech centers in the future are Dublin, Berlin, Tel Aviv, Singapore and Hong Kong.

Fintech – additional information

As well as Silicon Valley, New York and London were distinguished as main Fintech locations in 2014. In that year, investments in financial technology companies in New York amounted to approximately 600 million U.S. dollars, and investments in London-based companies were equal to approximately 66 million U.S. dollars. The other global cities with substantial Fintech activity, and which were looking at the prospects of developing into significant Fintech centers in the future, were Dublin, Berlin, Tel Aviv, Singapore and Hong Kong.

The value of investment in Fintech venture companies in the United States was equal to 2.4 billion U.S. dollars in 2013 and this figure was projected to increase to between 3.4 and 4.7 billion U.S. dollars in 2018. Investments in the Fintech sector globally amounted to three billion U.S. dollars in 2013 and they were estimated to reach between six and eight billion U.S. dollars in 2018. In 2014, the United States was the leading country in terms of value of investments in Fintech companies.

In 2014, the United States provided 200 thousand jobs in the Fintech sector, while the UK Fintech employment figure reached 82 thousand. London, New York City and San Francisco Silicon Valley were the cities with highest number of Fintech employees, with 51 thousand, 48 thousand and 13 thousand employees, respectively, within a 50 mile radius of each city.

Israel Market Capitalization: TASE: Warrant and Option: Technology : Investments in High Tech data was reported at 0.800 ILS mn in Oct 2018. This records a decrease from the previous number of 0.900 ILS mn for Sep 2018. Israel Market Capitalization: TASE: Warrant and Option: Technology : Investments in High Tech data is updated monthly, averaging 1.150 ILS mn from May 2011 (Median) to Oct 2018, with 90 observations. The data reached an all-time high of 43.500 ILS mn in Jan 2012 and a record low of 0.000 ILS mn in Mar 2014. Israel Market Capitalization: TASE: Warrant and Option: Technology : Investments in High Tech data remains active status in CEIC and is reported by Tel Aviv Stock Exchange. The data is categorized under Global Database’s Israel – Table IL.Z003: Tel Aviv Stock Exchange: Market Capitalization.