Almost half of Israeli tech investments are in Tel Aviv – report

Tel Aviv tech companies made up 20% of Israel’s tech workforce and generated nearly half of total investment volume and exit value, according to report released by Tel Aviv-Yafo Municipal Center for Economic and Social Research, Tel Aviv Global & Tourism and IVC Research Center.

Despite the global pandemic, 2020 has been a tremendous year for Tel Aviv’s tech scene, according to the report. Investments in Tel Aviv tech companies soared to $ 6.8 billion last year, up 34% from 2019 and accounting for 48% of all investments in Israeli tech companies.

Tel Aviv tech firms’ outflows hit a record $ 4.43 billion. in 2020, an increase of 20% compared to 2019 and of 46% of all exits in value. Over the past five years, the number of tech companies operating in Tel Aviv has grown by 25% compared to a 16% increase across Israel. Foreign investors held 68% of total investments in Tel Aviv companies, the report notes.

The city has 20 “unicorns” valued at over $ 1 billion. each, with 14 of those joining the roster in 2020, he said.

“Tel Aviv-Jaffa’s innovation ecosystem has had a remarkable year, breaking many records,” said Tel Aviv Mayor Ron Huldai. “Throughout the report, it is clear that exceptional human capital is one of the main reasons for the success of the ecosystem. Tel Aviv’s talent is a magnet for multinational corporations and foreign investors joining the growing local scene of innovators. The tech industry has demonstrated its value to our city and our country throughout this difficult year, while its cutting-edge ideas and developments remain at the forefront of global innovation. Tel Aviv-Jaffa will remain an international center of attraction for human and financial capital. “