Despite Israel’s war with Hamas, Tel Aviv rose to fourth place in a prestigious report ranking the world’s top startup ecosystems unveiled at London Tech Week on Monday.
The 2024 Global Startup Ecosystem Report, an annual analysis conducted by Startup Genome and the Global Entrepreneurship Network evaluated 4.5 million companies in more than 300 entrepreneurial ecosystems worldwide. Tel Aviv and Los Angeles both rose one spot up from last year, ranking behind Silicon Valley, New York City and London, tied for fourth place with Los Angeles.
“This remarkable achievement for Tel Aviv in the 2024 Global Startup Ecosystem Report is a testament to our resilience amidst challenging security circumstances,” said Tel Aviv Mayor Ron Huldai. “Last year, we stood in fifth place; and now, we proudly hold the fourth spot, a testament to the democratic and liberal ethos of our city and the innovative spirit of its residents. Surpassing obstacles, we stand shoulder to shoulder with global tech hubs like New York and London.”
According to the report, Tel Aviv’s tech startup ecosystem has created substantial value from exits and funding, positioning it as the leading ecosystem in the Middle East and North Africa region.
From July 2021 to December 2023, Tel Aviv’s ecosystem generated an impressive $253 billion, marking a 47% compound annual growth rate compared to the previous period.
The city ranks among the top ecosystems globally for early-stage funding and investor activity.
Major global corporations such as Volkswagen, Citi, Hyundai, and Visa have established innovation centers in the city, and more are in the pipeline, the report noted. In May 2023, Tel Aviv University (TAU) launched a new aggregation center for innovation, and in December 2023, the Israeli government announced a $27.6 million initiative to establish nine additional innovation centers.
Explaining the findings, Marc Penzel, founder and president of Startup Genome, “Entrepreneurs from Tel Aviv are confronted with unprecedented challenges, yet continue to build impeccable technologies and fast-growing businesses that successfully penetrate global markets.”
Other cities in the top 10 list behind Tel Aviv included Boston, Singapore, Beijing, Seoul and Tokyo.
Image - Reuters