We all know that Silicon Valley is widely recognized as a global hub for technology and innovation. It has been the birthplace of numerous successful startups. However, there are a few less recognized tech locations, from Austin to Miami to Tel Aviv.

Tel Aviv, Israel is known as a startup center. Israel is actually number one in the world for the most unicorns per capita (Source). It has established itself as a thriving hub for technology and innovation.

The reasons that made Tel Aviv so successful compared to other middle eastern countries likely relates to its geographical history. According to Deloitte, Israel's unique society and culture, strong economy, government support, and "global-first" market approach establishes its innovation ecosystem. It has fostered a vibrant startup ecosystem with abundant access to capital.

How did Israel, the size of New Jersey, become a startup powerhouse?

Given the century-long conflict between Israel and Palestine, Israelis were pressured to constantly innovate in order to stay ahead of their competitors in life or death situations. Israel's military is top-notch. Citizens who join the military after high school are given great responsibilities on firearms. In central Tel Aviv, arm-bearing soldiers are visible as they go about their days as usual.

The Unit 8200 was established as an elite intelligence unit of the Israel Defense Forces (IDF), where members were trained from a young age to become greatest technological engineers. It is known for its rigorous selection process to recruit Israel's brightest minds. It played a critical role in various military and counterterrorism operations, earning its well-deserved reputation as a highly effective and respected intelligence organization. The Unit 8200 has a strong focus on technological innovation, and many of its alums went on to become successful entrepreneurs. There is no doubt that they make the best hackers at hackathons. For example, the CEO of AppsFlyer (where I worked), was a former Israeli military trainee.

Many venture capital firms look to expand their branch to Israel and increase investments in Israeli startups. General Atlantic has made successful investments in Israel. Insight Partners opened its first Israeli office in Sarona Market in 2019. Toyota Ventures is looking to do the same.

While Silicon Valley is still the most respected place for ventures, innovation expands beyond the valley with vast opportunities throughout the world.

A comprehensive list of Israeli startups can be found at startupnationcentral.org

Yala Yala!