Tel Aviv, often referred to as the Start-Up City, stands out for being a generative force of innovation. Thanks to its lively entrepreneurial spirit and effective use of technological developments, and the costant drive for the promotion of urban sustainability, the city is working constantly to meet the goals it has set for itself.

Tel Aviv was ranked fifth place in the world in the annual survey of most attractive ecosystems for startups and innovation by research firm Startup Genome, moving up two spots from seventh place in 2021 to fifth in 2022. The Startup Genome global study mapped the global startup industry across more than 140 ecosystems, with data on 3.5 million startups. The higher the ranking, the better is the probability of an early-stage startup at building global success.

Tel Aviv was also ranked as the second highest-valued startup ecosystem in EMEA in 2022, with a combined enterprise value of $393 billion in 2022, second only to London, fifth in Asia and Oceania, and seventh in the Americas, according to a report by Dealroom.co, the global startup & venture capital intelligence platform. Since 2018, Tel Aviv’s startup ecosystem has grown 3.5 times in value, faster than the Bay Area, New York, Beijing, London, and Paris during the same period of time.

Image: Combined Enterprise value in 2022 per Region. Source: Dealroom.co. 

As the story of Silicon Valley had shown, combining a good climate with access to the prestigious university produces an interesting and inspiring startup scene. Tel Aviv has currently the highest startup per capita rate in the world. 

Timeline of Tel Aviv becoming a startup city

• 1990s: The first wave of Israeli startups emerge, focusing on internet and software technologies.
   
• 2000s: The Israeli government establishes the Office of the Chief Scientist, which provides funding and support to startups.
   
• 2010s: The startup ecosystem in Tel Aviv grows rapidly, with the number of startups increasing from 1,000 in 2010 to over 5,000 in 2020.
   
• 2020s: Tel Aviv is ranked as the fifth place in the world as most attractive ecosystems for startups and innovation by research firm Startup Genome and second highest-valued startup ecosystem in EMEA by global startup & venture capital intelligence platform Dealroom.co. 

Here are some of the key events that have helped Tel Aviv become a startup city:

• The rise of the internet and mobile technology has created new opportunities for startups, as it has made it easier for businesses to reach customers and partners around the world.
   
• The availability of venture capital has also been a major driver of the growth of the startup ecosystem in Tel Aviv. Venture capitalists are willing to invest in early-stage startups with the potential for high growth.
   
• The presence of a strong entrepreneurial community has also helped to drive the growth of the startup ecosystem in Tel Aviv. This community includes angel investors, incubators, accelerators, and other organizations that help startups get off the ground.
   
• The government's support for Innovation and for startups has also been a key factor in the city's success. The Israeli government provides funding, tax breaks, and other incentives to startups, which has helped to create a favorable environment for startups to thrive.

Tel Aviv is a vibrant and dynamic city with a strong entrepreneurial spirit. The city's startup ecosystem is expected to continue to grow in the years to come, and Tel Aviv is likely to remain one of the world's leading startup hubs.

Notable examples

Encouraging residents' participation

• DigiTel Platform: The platform, offered to city residents, provides personalized information and services. Among other things, it encourages users to join environmental initiatives, invites to events on environmental and sustainability issues, and encourages active participation in green programs.

Smart city initiatives

• Smart irrigation: IoT devices have been implemented in public parks and gardens to monitor soil moisture levels and ensure efficient water use.
   
• Green roofs: The municipality promoted the construction of utility roofs throughout the city. Some of these roofs are equipped with solar panels, while others feature urban farming technologies that combine sustainability with local food production.
   
• The Urban Heat Island: The city uses an advanced system that analyzes satellite images to identify and monitor urban heat islands. The analyzes help develop strategies to combat these heat pockets, such as increasing vegetation or changing infrastructure materials.

Sustainable transport

• AutoTel: A car-sharing service introduced by the municipality, which provides hundreds of vehicles throughout the city, reducing the need for personal ownership of vehicles and thus reducing overall vehicle emissions.

Resource management

Trash

• Underground waste containers: to reduce the smell and visibility of the waste, the city installed in some neighborhoods underground bins equipped with sensors that warn when they are full, while optimizing the collection routes and their timing.

Energy management

• Solar panels: The city is expanding the use of solar technologies to promote cleaner energy and reduce dependence on non-renewable sources.
   
• Energy-saving street lighting: by implementing LED lights with sensors, the city ensures that the streets are well lit while significantly reducing energy consumption.

water management

• Detection of leaks with the help of technology: Tel Aviv has integrated technologies to detect and treat water leaks in the city's plumbing infrastructure, saving water and reducing the waste of this valuable resource.
   
• Desalination and water recycling: using advanced technologies, the city draws a significant part of its water from desalination, and recycles wastewater for agricultural use.

Further reading

Tel Aviv Global & Tourism - The 2022 Tel Aviv-Yafo Tech Ecosystem Report

Startup Genome – Tel Aviv Start-up Ecosystem Report

Dealroom.co - Tel Aviv - A Global Startup Trailblazer