Innovation & Scouting Centers

Innovation & Scouting Centers

​​​​​​​​​​​​​​​​​​​​​​​​New and revolutionary technologies in a long list of industries, including cyber security, health & life sciences, agriculture, FinTech, automotive, machine-learning, hi-tech & mobile and others, all developed in Israel, continue to have great impact on the everyday lives of people in every corner of the world. Over 1,500 new hi-tech companies are established annually in Israel, and the development of countless new and breakthrough technologies creates a race between the largest multinational corporations’ venture arms, global VCs and other investment entities – all converging on Israel to invest in their growth and acquire their next best technologies.​

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The Israeli ecosystem: An innovation driven culture

One of the main success drivers of the Israeli hi-tech industry is its supporting ecosystem that encourages creative thinking, tolerance for high-risk actions, and establishment of independent small businesses. 
The fact that start-up entrepreneurs are cultural icons and role models in Israel contributes to the constant emergence of new programs and facilities all made to enhance the abilities of new entrepreneurs and continually breathe new life into the ecosystem. Israel;s society is historically tightly linked through different kinds of networks. Mandatory military service is one powerful network, and so are other business and social networks, very common in Israel, that constantly facilitate connections and bring people together. A stdy conducted by The Economist in 2016 found that informal networks are crucial to the success of ecosystems, just as much as funding and formal institutes are. According to the study, Israelis take the greatest advantage of online networking, they present the highest rate of meetings with other entrepreneurs in informal activity communities, and they are the most prolific participants in global online networking (LinkedIn, Facebook, Twitter, etc.). The combination of online and offline networking and the variety of hi-tech and innovation events, create a very high-scale informal start-up network that makes the start-up nation one of the most efficient start-up ecosystems in the world.

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The perfect locations

 

The location of companies is mainly derived from human resources and research capabilities around the area, which lead many of them to settle around major universities and research institutes. Although companies of all industries locate themselves throughout the entire country, some areas have developed unique characteristics that attract higher percentages of companies in specific fields. This consequently turns the area into a hub, by which it gains an important factor that is essential for development and growth. For example, the financial and technological center of Israel is the Tel Aviv metropolitan area, containing over 70% of the hi-tech companies in the country.

  • ​Tel Aviv and the central region: ICT, Internet, software, mobile, Fintech, life sciences and more.

  • Be'er Sheva and the Negev region: Cyber technology and solar power

  • Jerusalem: Computer science and data management, AI, machine learning, sustanable energy, pharmaceuticals and life sciences. 

  • Haifa and the northern region: Health & life sciences, marine science, defense, robotics and semicondustor.

  • ​Rehovot: 3D printing, semiconductor, sustainable energy, agri-tech and life sciences.​


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Top events and organizations

1. Hackathons

Originally, hackathons were events where computer programmers and others involved in software development collaborate intensively over a short period of time in order to solve a specific problem. In addition to a very large amount of Israeli computer-related hackathons in areas such as cyber security, advertising, big data and more, there has recently been an expansion of the hackathons concept to new and diverse areas.


 

2. Innovation events & conferences

 Israel is a natural home for start-up and innovation events and conferences. These events make it easier to form connections between relevant players in the industry and find new opportunities for cooperation.The highlight of these events is the global DLD conference, held in Tel Aviv for 6 consecutive years.


 

3. The Israeli Innovation Center

 The center, located at the Peres Center for Peace in Tel Aviv, was launched in June 2016. The center aims to present Israel’s transformation from an arid and desolate desert into the international technological powerhouse it is today to visitors from around the globe. Alongside the museum, it will also function as an entrepreneurship hub and a center for innovation events, hackathons, courses and education.


 

4. Governmental entities

 The Israeli hi-tech industry is highly diverse, sharing a common interface with almost every aspect of daily life in Israel. There are several governmental entities that are in charge of different features of the hi-tech industry, which operate under several ministries, such as the Ministry of Economy and Industry, which operates the Israel Innovation Authority, MATIMOP – the Israeli center for R&D, and the incentive programs for FDI; the Ministry of Science, Technology and Space; the Ministry of Education; the Ministry of Defense; the Ministry of National Infrastructure, Energy and Water Resources; the Ministry of Health; and the Ministry of Environmental Protection.​

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Accelerators and incubators

Israel ranks 4th globally for its venture capital availability and 2nd in venture capital confidence.​ One of the main factors of the recent growth in the Israeli start-up industry is the availability of capital for investment. The investors’ community in Israel is comprised of both local and global angels, VCs, crowd-funding platforms and international conglomerates.

  1. ​Angels: There are a few hundred active angels in the Israeli market. The angels invest in all industries, with a tendency toward Internet companies (which is the main industry of investment for 32% of the angels). The CleanTech and life science industries are known to have high entrance barriers, which is why the chance to conduct an exit with small investments is low, so they usually don't match the angel's requirements.

  2. VCs: VCs are the engine driving the start-up industry forward. There are around 100 VCs active in Israel today. The major VCs (in terms of number of investments) are: Singulariteam, Carmel Ventures, Innovation Endeavors, Magma, First Time, JVP, Vintage, Pontifax, Marker, Blumberg, OrbiMed Israel, Plus Ventures and Disruptive. Most of them are Israeli firms, some are foreign with allocation to Israel and some are an Israel-dedicated foreign fund. Contrary to expectations, many of the VCs invest in companies in all stages, including the early and seed stages. In addition, there is a large industry of micro-VCs (typically managing up to $50 million), including Lool Ventures, Peregrine, Elevator Ventures and InovGate.

  3. Crowd funding: Crowd funding is a new platform that brings together multiple people from around the world to create a VC. The VC approves all its members with the only restriction being a minimum annual investment. An example of this platform is Our Crowd, established by the Israeli-American investor John Medved, who leads the crowd funding trend.

  4. Corporate VCs: Israel is home to several hundred MNCs, holding scouting, R&D and manufacturing facilities. Alongside those activities, many MNCs maintain a venture arm in Israel, which aims to invest in or purchase an Israeli company with interesting relevant technologies. Among these are Intel Capital, Comcast Ventures, Samsung Ventures and Cisco Investments.

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טקסט כהה
  • Location, location, location

    Israel has the highest concentration of hi-tech companies in the world after Silicon Valley, making Tel Aviv the best location for start-ups outside the US.

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  • It sums up to greatness.

    The average amount raised by Israeli start-ups is approximately $10 million, or $423 per capita - more than twice the amount raised by American start-ups and 20 times more than European start-ups.

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  • Preparing for a better tomorrow

    The ratio of funding rounds vs. exits gave investors approximately $2 from exits for every $1 invested in the last 3 years.

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  • We don't do it by the numbers.

    ​There are approximately 7,000 active start-up companies in Israel, with over a 1,000 new ones emerging every year. Almost 50% are in the fields of software, Internet and IT.​

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  • Brilliant people, brilliant minds
    ​The Israeli system of higher education is known worldwide for being innovative, high level and diverse. Whether it’s purely academic, vocational, or anywhere within that spectrum, the final product – the worker – is always perfectly trained for market requirements. Israel has an efficient vocational education system that trains workers in a wide variety of professions such as computer programming, design, technical drawing, practical engineering, welding, engraving, machine operation and more. All of these co-exist with the highly-trained professionals that come out of universities and other research institutes.

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