Four Compelling Reasons Why Israel Is Going to Be the Next Big Start-Up Hub in 2020

Four Compelling Reasons Why Israel Is Going to Be the Next Big Start-Up Hub in 2020

Israel is home to almost 5000 active start-ups, with around 600 new additions every year. Numbers suggest that the country boasts of the maximum number of start-ups per capita as compared to other countries in the world. Israel stands first in venture capital investment per capita, with over 2000 start-ups increasing the funding over the past decade.

It might come as a surprise to know that the nation is on a continuous adaptation mode in the current scenario. It has found out solutions to combat climatic changes, demographics, or security threats. This has helped in building up an appropriate environment required to innovate. Considering numerous factors, one can confidently say that Israel is going to be the next BIG start-up hub in the decade to come!


Historically speaking, Israel has always been a land of immigrants. Immigration, according to Jewish tradition, is an ascent. Considering the waves of migration that took place over time, the period between 1934 and 1948 is known for the migration of the holocaust survivors. The 90s saw a massive movement of people who came in after the USSR broke. This one was of great significance, without an iota of doubt.

The role of these immigrants in entrepreneurship, as well as innovation in the country, is worth admiring. In fact, over 50 percent of the start-ups in Silicon Valley have been set up by immigrants. Another significant part of Israel’s immigration history is the period between 1989 and 2006 when around 1 million Jewish people migrated from the erstwhile Soviet Union to Israel.


Education holds an essential position in Israel’s value system. The parents in Israel are ready to sacrifice whatever personal comforts they have and give massive importance to educating their children in the best way possible. Mothers inspire their kids and try to bring out the best out of them. The GER or Gross Enrolment Ratio in the country was around 6.5 percent in 2015.

The growth rate at that time was around 2.86 per annum. Israel spends 6 percent of its total Gross Domestic Product or GDP on education and about 1.5 percent on tertiary education. A considerable number of students pursue math at higher levels, and that’s indeed praiseworthy. Kudos to all the parents and teachers for their fantastic contribution to the future of the country.

Serving The Army Is Compulsory

Serving in the national army is mandatory for every citizen. However, an exception to this rule is the  Orthodox Jews and the Arabs. You can quickly notice boys and girls aged 19 to 20 possessing semi-automatic artillery and controlling sensitive locations. If someone in the country enrolls for various Corps of Israeli Defence Forces, that is a rather prestigious thing to accomplish.

Unit 8200 of the cyber intelligence wing comprises those who are in the age group of 18 to 21. Owing to their young age, they need to offer a short service period that spans three years or so. You need to know that Unit 8200 is among one of the world’s best professional intelligence agency. A lot of Israelis need to travel abroad, and they learn a lot of things on the go. When they come back from the army and join a formal workforce or venture into something new, they bring a lot of experience to the table.


People often draw comparisons between the Israelis and a cactus plant, both of which have a rough external appearance and a soft inside. The people of this country are known for not mincing their words and call a spade, a spade. Their intent has always been honest, and there have been instances when they have proved it. People are busy with their things and love to mind their own business.

However, you will always get help when you need it in this beautiful country. For a start-up to gain success, the main factors that come into play are waste minimization, collaboration with strangers, and of course, optimum utilization of resources. Israelis are famous for all of these. Even challenging and questioning something or someone is permissible, even in organizations.

These are just some of the many reasons why Israel has progressed in all walks of life. There’s a thriving start-up culture that is about to next the next big leap in the next decade. Hopefully, the country is going to set some excellent examples for start-ups of the world.