April Edition 2022

6 An in-depth report by StartupBlink shows how Israel, in 3rd place, has substantially closed thegapon theUK, in2ndplace,both trailing theU.S.While Tel Aviv is renowned as the start-up hub, the report highlights a number of other cities in Israel doing well. Behind Jerusalem and Haifa comes Yokneam, ranked 5th nationally, “a particularly inspiring case study of a small town relatively far from other cities in Israel that has received tax benefits and used them in a cost-efficient way to create a strong hub that produced a unicorn in its vibrant tech park.” Ashdod, ranked 6th nationally, shows that “building a strong seed ecosystem while being situated relatively close to a hub like Tel Aviv is possible.” Eilat, ranked 7th nationally, also climbed in the table, an inspiring example of an ecosystemwhich is primarily focused on agro-tourism, and has managed to create an interesting hub deep in the desert. While four more cities joined the rankings: Nazareth, Caesarea, Modiin-Maccabim-Reut and Nahariya, there is also a potential to fulfil in the Galilee, with star city Kiryat Shmona already home to several start-ups – many of them operating in the food-tech space – as well as the recently-launched Margalit Start-Up City Galil, named after its founder Erel Margalit, founder and chairperson of venture capital fund Jerusalem Venture Partners. Last year, over USD 100 billion entered Israel through start-ups, with 33 new companies joining the unicorn club in 2021 and Israeli IPOs growing by 520% from 2020. Some of it relates to global trends including the COVID-19 digital disruption and a dearth of attractive investment options. Use the big budgets in the US and Europe to leverage Israeli innovation Gap shrinks between UK and Israel