Israel, often referred to as the 'Startup Nation,' has a highly advanced startup ecosystem, with Tel Aviv being the main hub for innovation. As of 2023, Israel is home to around 7,000 startups. The Israeli government supports entrepreneurship through initiatives like the Israel Innovation Authority and Yozma Program, which provide funding, resources, and mentorship for startups.
In 2022, Israeli startups raised approximately $20 billion in venture capital. The market's size reflects Israel's position as a global leader in technology and innovation, attracting significant investments from both domestic and international sources.
Strengths of the Israeli market include a highly educated workforce, strong technological base, and a culture that encourages innovation and risk-taking. These factors contribute to Israel's success in producing cutting-edge technologies and breakthrough startups.
Tel Aviv is known for its strengths in cybersecurity, healthtech, and artificial intelligence, attracting significant investments and producing notable startups like Waze and Mobileye. The city is a magnet for tech talent and entrepreneurial activity.
While Tel Aviv remains the epicenter, other cities like Haifa and Jerusalem are emerging as important tech hubs. These cities are developing robust startup ecosystems, supported by research institutions and a growing number of tech companies.
The Israeli startup ecosystem benefits from a strong network of incubators, accelerators, and co-working spaces. Initiatives like Start-Up Nation Central and SOSA offer mentorship, resources, and international exposure, significantly boosting the ecosystem.
Challenges include geopolitical instability and a relatively small domestic market. These factors can pose risks and limit the growth potential of startups that primarily rely on local markets.
Despite challenges, Israel remains a leader in innovation and entrepreneurship, with significant growth potential driven by continuous investment and technological advancement. The strategic location in the Middle East and strong trade relationships provide opportunities for international expansion.
Israel's strong emphasis on innovation and technology is evident in its support for sectors like cybersecurity, agritech, and medtech. The robust infrastructure and pro-business policies make it an attractive destination for entrepreneurs and investors. As Israel continues to invest in its startup ecosystem, it is poised for further growth and development, contributing significantly to the regional and global markets.
Israel, known as the 'Startup Nation,' boasts a vibrant ecosystem of angel investors and venture capital firms that drive its innovation and technological advancements. The country has become a global hotspot for startups, particularly in sectors like cybersecurity, healthtech, and artificial intelligence. The support from top investors has been pivotal in propelling Israeli startups to international success.
Leading angel investors in Israel include figures like Eyal Gura, Yair Goldfinger, and Shlomo Kramer. These investors have made substantial contributions to the startup ecosystem by providing early-stage funding, mentorship, and strategic guidance. Their investments often range from $100,000 to $1 million, supporting startups in scaling their operations and refining their products.
Prominent venture capital firms in Israel include Sequoia Capital Israel, Andreessen Horowitz, and Pitango Venture Capital. These firms have substantial investment portfolios, backing numerous startups across various sectors. Sequoia Capital Israel, for instance, has invested in companies like Mobileye and Houzz, while Pitango has supported notable startups such as Via and Varonis.
Israeli venture capital firms typically invest in rounds ranging from $1 million to $50 million. The scope of these investments covers early-stage startups to growth-stage companies, with a focus on sectors like cybersecurity, AI, fintech, and healthtech. This broad investment scope has enabled Israeli startups to innovate and expand rapidly.
In 2022, Israeli startups raised approximately $20 billion in venture capital, with over 700 deals closed. The high number of investments underscores the dynamic nature of Israel's startup ecosystem and the confidence investors have in the country's entrepreneurial potential.
Angel investors and venture capital firms in Israel are known for providing more than just financial support. They offer mentorship, strategic advice, and valuable industry connections. Programs like the Yozma Program and the Israel Innovation Authority further enhance this support, providing resources and funding opportunities for startups.
The future outlook for Israel's investment market is promising. With continuous advancements in technology and a strong emphasis on innovation, the country is expected to attract even more investment. Emerging sectors like agritech, clean energy, and biotech are gaining traction, presenting new opportunities for investors and entrepreneurs alike.
Israel's startup ecosystem has demonstrated remarkable resilience and adaptability, particularly in the face of geopolitical challenges. The ability to innovate rapidly and pivot in response to market demands has been a key factor in the sustained growth of the ecosystem. This resilience is supported by a robust infrastructure and a culture that embraces risk-taking and entrepreneurship.
Menlo Park - San Francisco Bay Area - California, U.S.A. - Israel - Europe: Germany, United Kingdom, France, Italy, Spain, Poland, Romania, Netherlands, Belgium, Czech Republic, Greece, Portugal, Sweden, Hungary, Austria, Switzerland, Denmark, Finland, Slovakia, Norway, Ireland, Luxembourg, Malta, Icelan
BioTech • Businesses Solutions • Hardware (& Manufacturing) • Retail (& E-Commerce) • IoT (& Wearables) • A.I. (& Big Data) • Web Security (& Privacy) • Autonomous vehicles (& Cars) • Robotics
Riverwood Capital is a globally-focused private equity firm that invests in high-growth businesses in the technology and services industries, across a variety of verticals and geographies. Riverwood has offices in Menlo Park, CA and New York, NY and currently has more than 20 investments in North America, Latin America and Asia. The firm's current fund has $780 million of committed capital. The final fund close was in April 2011. Riverwood invests in mid-market technology and technology enabled products and services. The firm defines mid-market as approximately $100-$500 million in revenue for product companies, and approximately $25-$150 million in revenue for software and services. Riverwood occasionally invests outside these ranges. Riverwood invests on a global basis, having already invested in the U.S., Israel, Argentina, Chile, and Brazil. The firm's normal investment size ranges from $25-75 million.
Tel Aviv - Menlo Park - California, U.S.A. - Israel
PropTech • BioTech • FinTech (& Financials services) • CleanTech • Web Security (& Privacy) • Real Estate (& Construction)
Private Investor; Co-Founder & Partner Emeritus, DCM Ventures; US NVCA Chair (2008-09)
LP/Advisor at Ten Eleven Ventures
Palo Alto - Los Altos - California, U.S.A. - Global: U.S.A., Australia, Canada, Germany, U.K., Israel, France, Italy, Spain, Netherlands, Belgium, Switzerland, Denmark, Finland, Luxembourg, Malta, Iceland
Software (Web Marketplace Saas..) • Businesses Solutions • FinTech (& Financials services) • Retail (& E-Commerce) • A.I. (& Big Data) • Cloud Services (& Infrastructure)
Managing Partner at Pear VC
Tel Aviv, Israel
Businesses Solutions • Consumer
Husband, Father, Grandfather and Venture Capitalist
Most Interested In
Out of the box ideas
Not Interested In
adtech, general enterprise
Michael Eisenberg is an equal partner at Aleph. Aleph is an early stage venture capital focused on serving Israeli entrepreneurs who want to build scalable, global businesses. Prior to Aleph, Michael was a general partner at Benchmark Capital which he joined in July 2005 and continues as the partner responsible for Benchmark’s Israeli portfolio. Michael has focused on Internet investments since 1995 and has invested in and sat on the board of Israel’s leading companies and start ups, such as Shopping.com (Nasdaq SHOP, acquired by EBAY), Conduit, SeekingAlpha, Gigya, WeWork, Wix (Nasdaq WIX), Answers.com (Nasdaq ANSW), Tradeum (acquired: VERT), and Picturevison (acquired: EK).
San Francisco Bay Area, U.S.A. - Israel
Media • Businesses Solutions • FinTech (& Financials services) • Retail (& E-Commerce) • Sales (& Marketing) • Cosmetics (& Fashion) • Gaming (& eSports) • Cloud Services (& Infrastructure) • Local commerce • Online Social
Managing Partner at Hillsven
Managing Partner at Hillsven
Tel Aviv - New York - San Francisco Bay Area - California, U.S.A. - Israel
Software (Web Marketplace Saas..) • Businesses Solutions • FinTech (& Financials services) • A.I. (& Big Data) • Blockchain (& Cryptos) • Cloud Services (& Infrastructure) • Messaging
General Partner at Coatue. 4x venture-backed Founder/CEO.
, Israel
Software (Web Marketplace Saas..) • Businesses Solutions • A.I. (& Big Data) • HealthTech (& Fitness) • Web Security (& Privacy) • Medical Devices (& Hospital Services) • Healthcare (& Wellness) • Consumer
CEO Transmit Security and Cyber Security Investor
Member at Cyberstarts VC