In the past two years, Israel has solidified its reputation as a startup nation. With multiple tech-companies and cybersecurity startups, Israel has raised nearly $15 billion and has created a haven for innovators through various programs and tax incentives.
There are many factors that have driven Israel’s recent business success. One of the theories is that Israeli startup founders have moved their headquarters to US cities in order to tap into thriving local investments. These founders have also gone public or sold to large US tech companies to make their own companies attractive to VCs.
Government programs and tax incentives have also contributed to the success of Israeli business owners. Conditional grants, reduced tax rates, and tax exemption are all part of the $70 million worth of programs that were launched early 2022 to promote Israeli entrepreneurship. Companies were also given employment aid programs which ranged from 10-40% wage subsidiaries up to several years.
Additionally, Israel recently signed the Abraham Accords, which has opened even more opportunities for the country’s business success. 150,000 new jobs could be created between the four signatories and could grow to include 11 nations. This would mean more than 4 million jobs and more than $1 trillion in new economic activity which could last a number of years!
With all of this funding and opportunity, Israel has become a major hub for startups. The popular navigation app Waze was one of these popular startups. The app helps over 140 million users avoid traffic while providing accurate directions. It is majorly successful today after receiving $67.1 million in funding in its early stages.
Israel has made a name for itself as a major business hub in recent years. To learn more about the factors that have led to this significant increase in business success, take a look at the infographic below: