Banner yr for Tel Aviv Metropolis, Tech startups, and multinationals
With a inhabitants of 460.000, Tel Aviv is residence to 29% (2750 companies) of all Israeli know-how corporations, 115 worldwide R&D services, and 20 unicorn corporations, 14 of them exceeding the $1 billion valuations in 2020 alone.
In response to the Tel Aviv Innovation Ecosystem research issued right this moment by Tel Aviv-Yafo Municipality and IVC Analysis Heart, regardless of the worldwide pandemic, 2020 was a formidable yr for the Tel Aviv tech scene by any parameter.
• Tel Aviv-based know-how corporations employed 20% of the Israeli tech workforce and accounted for roughly half of general funding and exit worth.
• In 2020, investments in Tel Aviv know-how corporations elevated to $6.8 billion, 34% increased than in 2019 and accounting for 48% of all Israeli know-how firm investments.
• International traders accounted for 68 % of all investments in Tel Aviv-based companies.
• Tel Aviv-based know-how enterprise exits totaled a file $4.43 billion in 2020, a 20% improve over 2019 and 46% of all exits by worth.
• Over the past 5 years, Tel Aviv’s IT sector has grown by 25%, outpacing Israel’s general development of 16%.
Within the newly launched World Startup Ecosystem Index 2021 by Startupblink, Israel ranked third globally, after the US and UK, whereas Tel Aviv ranked eighth amongst cities with a know-how ecosystem.
Tel Aviv, Israel’s high-tech hub, is without doubt one of the world’s most modern and technologically superior cities. Gifted and modern people, modern know-how corporations, enterprise capital funds, and different traders; accelerators, multinational companies, monetary establishments; service suppliers, and main universities are all in proximity, forming an ebullient and profitable ecosystem. Whatever the world epidemic, 2020 was a banner yr for Tel Aviv’s innovation scene on all fronts.
“The Tel Aviv-Yafo innovation ecosystem breaking many information. Excellent human capital is without doubt one of the principal causes for the success of the ecosystem,” stated Mayor Ron Huldai. “Tel Aviv’s expertise is a magnet for multinational companies and international traders who be part of the rising native scene of innovators. The tech business demonstrated its worth to our metropolis and nation all through this difficult yr, whereas its cutting-edge concepts and developments stay on the forefront of world innovation. Tel Aviv-Yafo will stay a global heart of attraction for human capital and monetary capital.”
Tel Aviv traders
Between 2016 and 2020, the variety of Tel Aviv-based traders elevated by 44 %, led by enterprise capital funds and funding organizations. Tel Aviv noticed a surge of 89 % within the variety of enterprise capital funds and a 70 % improve within the variety of enterprise capital administration organizations, in keeping with the analysis. International traders account for 68% of all traders in Tel Aviv-based enterprises in 2020. These traders symbolize 35 completely different international locations. Traders based mostly in the USA are probably the most energetic, adopted by these based mostly in the UK, China, and Germany.
Investments and Exits from Tel Aviv-based Companies
In 2020, a file $6.839 billion might be invested in 416 Tel Aviv-based companies. This represents 48% of general investments in Israel and represents a 34% improve over 2019. Over the past three years, the common spherical has tripled from $5.1 million to $16.4 million.
In response to the analysis, 60% of investments in Tel Aviv enterprises went to scale-ups, whereas 30% went to pre-scale corporations. Early-stage enterprises obtained lower than 10% of complete capital, below the nationwide pattern.
Tel Aviv enterprises exited for $4.43 billion in 53 transactions, a large improve from the $883 million from 36 exits in 2016.
In 2020, three Tel Aviv-based corporations will full preliminary public choices on the NYSE, Nasdaq, and Euronext.
Tel Aviv tech corporations by stage
The Tel Aviv Innovation Ecosystem Report analyzed Tel Aviv tech corporations by stage of development. Out of 2865 tech corporations in Tel Aviv, 50% are start-ups, 40% are in mid-stages or pre-scale, 6% are scale-ups and mature corporations, and 4% are international R&D facilities of multinational company (MNCs). * (see methodology for stage definition)
Although Tel Aviv scale-up corporations account for under 6% of tech corporations, they make use of 54% of the workforce within the Tel Aviv tech ecosystem. This ecosystem is displaying an rising degree of maturity as 14 new Tel Aviv unicorns had been born in 2020 bringing the overall to twenty. Tel Aviv unicorns’ joint valuation reached $33 billion.
The report additionally signifies a major development of 25% within the variety of energetic corporations over the previous 5 years, a lot increased than the 16% improve in Israel in that timeline.
Tel Aviv tech corporations by main tech clusters
An evaluation of the Tel Aviv tech ecosystem by kind of know-how exhibits that town is in steady transition, from start-up metropolis to deep tech capital. The main tech clusters in Tel Aviv in 2020 had been AI (Synthetic Intelligence), Fintech, Large Information, and SaaS. AI is the main tech cluster in Tel Aviv, capturing 43% of all Israeli AI corporations adopted by Fintech corporations (42% of all Fintech corporations). AI and cybersecurity cluster are the leaders when it comes to investments and exits’ quantity.