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Tel Aviv Reaches 4th Spot in International Startup Rankings

Tel Aviv Rises Amidst Conflict, Becoming a Global Startup Powerhouse

Despite the ongoing conflict with Hamas, Tel Aviv has ascended to fourth place in the 2024 Global Startup Ecosystem Report, unveiled at London Tech Week on Monday. This annual analysis by Startup Genome and the Global Entrepreneurship Network evaluated 4.5 million companies across more than 300 entrepreneurial ecosystems worldwide.

Tel Aviv, tied with Los Angeles, moved up one spot from last year, ranking just behind Silicon Valley, New York City, and London. Tel Aviv Mayor Ron Huldai celebrated this achievement, emphasizing the city's resilience and innovative spirit amidst challenging security circumstances.

“Last year, we stood in fifth place; and now, we proudly hold the fourth spot, a testament to the democratic and liberal ethos of our city and the innovative spirit of its residents. Surpassing obstacles, we stand shoulder to shoulder with global tech hubs like New York and London,” Huldai remarked.

The report highlights Tel Aviv's thriving tech startup ecosystem, which has created significant value from exits and funding, making it the leading ecosystem in the Middle East and North Africa region. Between July 2021 and December 2023, Tel Aviv's ecosystem generated $253 billion, marking a 47% compound annual growth rate.

Tel Aviv also ranks among the top ecosystems globally for early-stage funding and investor activity. Major global corporations such as Volkswagen, Citi, Hyundai, and Visa have established innovation centers in the city, with more planned for the future.

In May 2023, Tel Aviv University (TAU) launched a new aggregation center for innovation, and in December 2023, the Israeli government announced a $27.6 million initiative to establish nine additional innovation centers.

Marc Penzel, founder and president of Startup Genome, explained the findings: “Entrepreneurs from Tel Aviv are confronted with unprecedented challenges, yet continue to build impeccable technologies and fast-growing businesses that successfully penetrate global markets.”

Tel Aviv's rise in the global startup rankings underscores its position as a beacon of innovation and resilience, solidifying its status as a leading tech hub.

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