TEL AVIV TECH ECOSYSTEM REPORT

TEL AVIV TECH ECOSYSTEM REPORT 2024

Photo: Eddie Shor

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Produced by Tel Aviv Global & Tourism, 2025 Data by IVC Research Center & dealroom Graphic Design by Studio Touch Mayor's Photo: Guy Yechieli

To our cherished tech community, The Tel Aviv-Yafo Tech Industry Report for 2024 was written during a difficult and complex period for the State of Israel, the second year of war, a year of uncertainty, and a global slowdown in investment. And yet, it is precisely from within these challenges that the true story of our city emerges once again - resilience, creativity, and unmatched boldness.

Now, with the end of the war, Israel stands at the threshold of a new era - an era of repair, rebuilding, and growth, one that brings with it many challenges. Within this reality, Tel Aviv-Yafo continues to be home to technology companies, entrepreneurs, and world-class talent, all working together to create an ecosystem that pushes boundaries and creates a new future. In an era when artificial intelligence is rewriting the rules of the game, Tel Aviv’s high-tech industry is not only keeping pace, it is leading it. From defense and security, to digital health, to sustainability, the ideas born here reach far beyond the city and the country. They are changing the world. Behind all this progress stands not only advanced technology, but - first and foremost - people. Thousands of reservists repeatedly called to duty, researchers, engineers, students, managers, and more, all are part of the city’s resilience that drives the wheels of innovation. They are the reason Tel Aviv-Yafo continues to be a global hub, with a beating heart of freedom, democracy, and pluralism. At Tel Aviv-Yafo Municipality, we continue to invest in smart infrastructure, nurture human capital, and strengthen the connections between the public sector, academia, and industry. Our vision sees the Tel Aviv high-tech ecosystem not only as a driver of economic growth and a global technology center, but also as a powerful force that strengthens the social fabric by advancing equal opportunity and expanding workforce diversity. In an age of accelerated technological change and unprecedented progress, innovation is not just a goal - it is an essential condition for the economic, social, and civic prosperity of the city and its residents. Even today, we do not forget the hostages and the fallen. We continue to stand alongside the families and work for the return of everyone home - for a proper burial, until the very last one. I invite you to dive into the report and see for yourselves the true strength of Tel Aviv’s tech industry - a free, daring, and vibrant spirit embodied by the people of the ecosystem. The spirit of the city of Tel Aviv-Yafo. Ron Huldai Mayor of Tel Aviv-Yafo

I am proud to present the Tel Aviv–Yafo Tech Industry Report for 2024. This year has brought with it significant challenges on the national and local stage, shaped by ongoing crises and emergencies, alongside dramatic shifts in the global technology landscape - led by the rise of artificial intelligence, which continues to redefine the limits of human capability, market structures, and the nature of work.

The data for 2024 shows that Tel Aviv’s industry continues to maintain its standing as one of the world’s leaders: companies based in the city raised $7.9 billion, including 15 mega-rounds of more than $100 million each; 14 multinational corporations established new R&D centers in Tel Aviv; and 44 funds invested in local companies for the first time. Growth-stage companies operating in the city recorded a 10% increase in their global workforce. These achievements reflect continued confidence in the capabilities of the city’s companies and entrepreneurs, in their resilience during challenging times, and in the power of the local ecosystem to keep growing. This was also a year of growth in strategic areas, led by the DefenseTech sector, which is establishing itself as an innovative and globally relevant field. At the same time, Tel Aviv–Yafo continues to lead in areas where it is already recognized as a major international player - cybersecurity, artificial intelligence, fintech, and medtech. These trends highlight the ecosystem’s remarkable adaptability, the ongoing investment in advanced technologies, and the strong ties linking industry, academia, entrepreneurship, and government. We also see a rise in cross-disciplinary collaborations that are driving innovative solutions combining technology with social, environmental, and security impact - positioning Tel Aviv–Yafo as a place where innovation meets purpose. The commitment of the Tel Aviv–Yafo Municipality to its vision of being a global innovation leader is not just a promise, but a cornerstone that ensures the continued advancement of this ecosystem as a powerful engine of growth and influence. Despite the challenges Israel has faced over the past year, we look ahead with hope and entrepreneurial spirit. This report reinforces the understanding that Tel Aviv–Yafo is not only a hub of investment and ideas, but also a driver of strong communities, deeper social impact, and meaningful connections that fuel real innovation. The Tel Aviv–Yafo tech industry remains a source of inspiration, creativity, and resilience - and continues to shine as a beacon of innovation and impact on the global stage.

Sharon Landes-Fischer CEO, Tel Aviv Global & Tourism

TEL AVIV TECH / 5

Tel Aviv Tech at a Glance 2024 Tel Aviv is known worldwide as a launchpad for innovation. In 2024, despite global and local market challenges, the city's tech ecosystem showed exceptional resilience and growth. Its unmatched density of startups, talent, and investors fuels a vibrant, fast moving environment that continues to shape the future of global technology.

14 New Multinational R&D Centers Led to a 6% increase in the total number of MNCs

2,652 Tech Companies Operate in Tel Aviv Early-stage startups expanded by 3% compared to 2023

$8 B Raised by Tel Aviv Companies in 2024 A 66% increase YoY, including a record year in mega rounds

$10.8 B in Exit Value in 2024

A record breaking year with 32% increase YoY

1,122 AI Companies in 2024 39% YoY Increase in Generative AI field

6 / HIGHLIGHTS

Photo: Guy Yechiely

TEL AVIV TECH / 7

Where Density Drives Impact

TEL AVIV’S TECH ECOSYSTEM CONTINUES TO THRIVE, FUELING A DYNAMIC COMMUNITY, CONSTANT COLLABORATION, AND THE STEADY FLOW OF IDEAS THAT DRIVE GLOBAL INNOVATION FORWARD.

174 Multinational Corporations

2,652 Tel Aviv Tech Companies

1,000+ Tech Meetups

374 Investor Offices

11 Academic Institutions

189 Accelerators

78 Co-working Spaces

1,409 Local & International Investors

8 / HIGHLIGHTS The Heart of the Startup Nation

Regional Distribution in Israel

2,578

3,524

2,652 30%

Tech Companies

54 63%

24

8

Unicorn Companies

70% $7,976

$1,833

$1,648

Capital Raised (Millions)

$10,856 63%

$2,758

$3,657

Exit Value (Millions)

34% 174

200

145

Multinational R&D Centers

20% 102

450

Employees (Thousands)

Tel Aviv

Metro Tel Aviv

Rest of Israel

TEL AVIV TECH / 9

Tel Aviv is a Global Tech Powerhouse

#1 Startup to Unicorn Conversion #4 Global Startup Ecosystem $437 B Ecosystem Enterprise Value*

Global Ecosystem in Knowledge

Global Ecosystem in Talent & Experience

Global Ecosystem in Funding

*2023

MedTech Talk PlanetTech DLD Sparks CyberTech CyberWeek AI Week AI on the Bar 1:1 Startup Investor Forum Investors Panel and Networking DefenseTech Summit EIT HUB The Ecosystem Summit JOURNEY Smart Cities Talk Tech & the City 10 / HIGHLIGHTS NonStop Tech Events

TEL AVIV TECH / 11

12 / TECH COMPANIES

Photo: ProjectTLV

TEL AVIV TECH / 13

THE RISE IN R&D STAGE STARTUPS HIGHLIGHTS TEL AVIV'S STRONG PIPELINE OF FUTURE INNOVATION AND TECHNOLOGICAL BREAKTHROUGHS.

Number of Tel Aviv Companies by Growth Stage

2,739

2,662

2,731

2,652

2,699

300

280

317

274

318

1,331

1,242

1,364

1,415

1,407

884

859

858

770

802

261

252

217

167 2020

165 2021

2022

2023

2024

Revenue Growth

Initial Revenues

R&D

Seed

14 / TECH COMPANIES

LEADING SECTORS BY NUMBER OF COMPANIES & CHANGE COMPARED TO 2023

Artificial Intelligence 1,122 Machine Learning 412

Marketing Tech 130

Insurtech 125

SaaS 407

Gaming 124 AdTech 105

FinTech 370

Blockchain 104 Automotive 89 Digital Health 88

Cyber Security 277

Cloud 241

Big Data 206

Generative AI 189

PropTech 88

RetailTech 165

EdTech 87

IoT 141

Climate Tech 77

*Companies may be tagged under multiple verticals Increase vs. 2023 Decrease vs. 2023

TEL AVIV TECH / 15

HIGHEST 1YR GROWTH RATE SECTORS IN NUMBER OF COMPANIES

39% Generative AI

34% Insurtech

15% SaaS

15% Artificial Intelligence

10% Cloud

9% Cyber Security

SECTORS THAT SUFFERED THE HIGHEST DOWNTURN IN NUMBER OF COMPANIES

-9% AdTech

-8% Automotive

-4% Big Data

-4% RetailTech

-2% Blockchain

-2% Gaming

16 / TECH COMPANIES

Spotlight on DefenseTech

Capital Raised

126 DefenseTech Companies

359

400

287

256.3

200

130

52.4

0

2020

2021

2022

2023

2024

Leading DefenseTech Sub Sectors By Share of Companies

Aerospace & Space 9% Perimeter Security 3% Cyber & Threat Response 15%

National & Defense Security 30%

Unmanned Systems 27%

Intelligence & Surveillance 16%

Top 7 DefenceTech Companies' Capital Raised in 2024

TEL AVIV TECH / 17

TALENT

THE TALENT BEHIND TEL AVIV'S TECH DOESN'T JUST BUILD - IT SCALES, INSPIRES, AND LEADS WORLDWIDE .

Number of Employees in Tel Aviv

1,207

10,557

28,541

88,577

SEED

R&D

Initial Revenues

Revenue Growth

In 25% of Tel Aviv households

25,443

at least one person works in tech

Multinational Employess in Tel Aviv

There's no question in my mind Israel has the highest quality entrepreneurs in the world, full stop. The probability of finding the right mix of high integrity, hard work, smarts , and hustle is better here than just about anywhere else in the world.

Jeff Horing, INSIGHT PARTNERS COFOUNDER AND MANAGING DIRECTOR

18 / HIGHLIGHTS UNICORNS

TEL AVIV IS A UNICORN POWERHOUSE , 9% OF STARTUPS BECOME UNICORNS.

Tel Aviv Unicorns 54

Accumulated Value $158 B

THE THRIVING ECOSYSTEM OF TEL AVIV'S UNICORN COMPANIES IS FURTHER BOLSTERED BY THE STRATEGIC ARRIVAL OF SAFE SUPER INTELLIGENCE TO THE CITY.

We are an American company with offices in Palo Alto and Tel Aviv, where we have deep roots and the ability to recruit top technical talent

Ilya Sutskever, Daniel Gross, Daniel Levy - SSI Founders

TEL AVIV TECH / 19

Graduation Rate of Startups from Standardized Seed Rounds Between 2015 and 2020

9%

7%

6%

4%

3%

2%

2%

% Unicorns

13%

12%

11%

11%

9%

8%

8%

Exits from Seed

6%

5%

4%

4%

2%

2%

2%

Series D

12%

11%

10%

9%

6%

5%

4%

Series C

24%

23%

21%

20%

15%

11%

10%

Series B

40%

38%

38%

36%

33%

29%

25%

Series A

Tel Aviv

Bay Area

New York

Berlin

London

EMEA

Paris

Source: Dealroom.co

20 / CAPITAL RAISED

TEL AVIV COMPANIES SECURED AN IMPRESSIVE $8 BILLION IN INVESTMENTS - MARKING A REMARKABLE 66% YOY SURGE.

Capital Raised by Tel Aviv Companies (Millions)

$ 20,729

$10,644

66%

$8,423

$7,976

$ 4,788

2020

2021

2022

2023

2024

599

773

609

342

114

# of Total Rounds

Revenue Growth

Initial Revenues

R&D

Seed

TEL AVIV TECH / 21

15 Companies Raised Mega Rounds Over $ 100 Million

965

600

200

200

197

175

150

120

120

100

100

100

100

100

100

22 / HIGHLIGHTS INVESTORS

TEL AVIV TECH / 23

TEL AVIV’S GROWTH DRAWS GLOBAL INVESTORS

Leading investors countries

24 / HIGHLIGHTS INVESTORS

GLOBAL CONFIDENCE IN TEL AVIV REMAINS UNSHAKEN – EVEN WHEN THE WORLD SLOWS DOWN, TEL AVIV SPEEDS UP

1,591 INVESTORS*

In 2024 alone 650

Share of Foreign and Local Investments in Tel Aviv Companies

67% Foreign Investors

33% Local Investors

* 2018-2024

TEL AVIV TECH / 25

Growth in Number of VC Investors

384

313

293

252

200

2020

2021

2022

2023

2024

2024 Investors by Type

Investment Company 12%

Coporate VC 4.8% Private Equity 2.9% Angel Club 3.5%

Venture Capital 61%

Others 15.8%

26 / INVESTORS

CORPORATE ROUNDS REPRESENT 24% OF ALL ROUNDS IN TEL AVIV IN 2024, THE MOST IN ANY GIVEN YEAR

Number of Rounds in Tel Aviv Sturtups by Investor Type

2024

24%

44%

32%

2023

21%

42%

38%

2022

21%

42%

37%

2021

20%

43%

37%

2020

16%

39%

46%

2019

15%

36%

49%

2018

16%

42%

42%

2017

15%

38%

47%

2016

13%

40%

47%

2015

10%

36%

54%

2014

8%

38%

54%

Corporate

Venture Capital

Other

Source: Dealroom.co | * Per Capita benchmarking based on top finded locations

TEL AVIV TECH / 27

TEL AVIV RANKS #6 GLOBALLY IN VC INVESTMENTS PER CAPITA & #1 AMONGST EMEA HUBS

VC Investments per Capita* in 2024 , Global Hubs

Bay Area

$9.3K

Denver

$2.9K

Boston

$2.6K

New York

$2.3K

San Diego

$2.1K

$1.6K

Tel Aviv

London

$1.2K

Seattle

$761

Los Angeles

$526

Toronto

$472

Bengaluru

$443

Paris

$428

Beijing

$221

Mumbai

$148

Shanghai

$132

Tel Aviv

EMEA hubs

Global hubs

28 / MULTINATIONAL PRESENCE

MULTINATIONAL R&D CENTERS IN TEL AVIV

TEL AVIV TECH / 29

A CONTINUOUS RISE IN GLOBAL COMPANIES BETTING ON TEL AVIV’S THRIVING TECH ECOSYSTEM The opening of 14 new multinational R&D hubs in 2024 alone is a clear vote of confidence. 30 / MULTINATIONAL PRESENCE

Growth in Number of Multinational R&D Centers

174

164

156

143

121

2020

2021

2022

2023

2024

TEL AVIV TECH / 31

31 /

THE 7 HIGHEST VALUED TECH COMPANIES (M7) HAVE MADE TEL AVIV THEIR SECOND-LARGEST INVESTMENT DESTINATION IN EMEA

Number of rounds in EMEA by Magnificent 7 (2019-2024)

EMEA Hub Number of Rounds

51

London

25

Tel Aviv

8

Berlin

Paris

6

Helsinki

5

Amsterdam

5

Barcelona

3

Dublin

3

Munich

2

Stockholm

1

VC Rounds mostly by:

Source: Dealroom.co *Amazon, Apple, Alphabet/Google, Meta, Microsoft, NVIDIA, Tesla

EXITS 32 /

Photo: Magnus S

TEL AVIV TECH / 33

IN 2024, ACQUISITIONS IN TEL AVIV REACHED A RECORD BREAKING 10.8 $ BILLION, SURPASSING ANY PREVIOUS YEAR AND SOLIDIFYING THE CITY'S STATUS AS A GLOBAL TECH EXIT HUB.

Value and Number of Tel Aviv Exits

32%

$10,856

$10,296

$8,968

$8,202

$4,394

2020

2021

2022

2023

2024

68

110

62

46

64

Total # of Exits

IPO (Millions)

Acquired (Millions)

34 / EXITS

M&A'S LARGER THAN 100M$ IN 2024

Artificial Intelligence

Artificial Intelligence

Developer Tools

Cyber Security

$1.9B

$750M

$720M

$500M

Artificial Intelligence

Behavior Analytics

Automation

Analysis

$450M

$450M

$350M

$300M

Artificial Intelligence

Artificial Intelligence

Artificial Intelligence

Analysis

$300M

$271M

$230M

$210M

TEL AVIV TECH / 35

FROM INNOVATION TO ACQUISITION: THE VERTICALS SHAPING 2024'S 100 M+ EXIT LANDSCAPE

Application Security

Application Security

Leading Sectors by Exit Value

$200M

$162M

1 Cyber Security 2 Artificial Intelligence 3 Analytics 4 AdTech 5 Developer tools 6 Cloud 7 Healthtech 8 Marketing tech 9 EdTech 10 Automation

Accounting Tech

Artificial Intelligence

$150M

$115M

Artificial Intelligence

$110M

ROADMAP 36 /

The Strategic Roadmap for Tel Aviv Tech Growth

TEL AVIV'S EVOLVING ROLE IN DRIVING GROWTH: FROM NATURAL MAGNET TO PROACTIVE PIONEER

The Natural Magnet

Three Pillars to Achieve Our Goals

Infrastructure Strategic Shift for Growth Enable innovative growth by ensuring strong, smart infrastructure and promoting deep-tech development.

TEL AVIV TECH / 37

Proactive Enabler

Pioneering the Future

Services Refining Ecosystem Support Support the tech ecosystem through targeted municipal services, smoother processes, and value creation.

Talent Securing a Competitive Future Workforce Invest in education, upskilling, and talent attraction to secure a competitive future workforce.

38 /

METHODOLOGY

IVC 1. The data in the report is updated to February 24, 2025 .

2. Definition of Tel Aviv tech company : The headquarters of the company is located in Tel Aviv • The company manages a branch office in Tel Aviv with an HQ relocated abroad. 3. Definition of Greater Tel Aviv company : The headquarters of the company is located in one of the cities and towns near Tel Aviv • The company manages a branch office in one of the cities and towns near Tel Aviv • List of cities and towns included in Greater Tel Aviv: Azur, Bat-Yam, Bnei Brak, Ganey Tikva, Givat Savion, Givat Shmuel, Givatayim, Herzliya, Holon, Kibbutz Glil-Yam, Kiryat Ono, Or Yehuda, Petach Tikva, Ramat Efal, Ramat Gan, Ramat Hasharon, Savyon-Gani Yehuda, Yehud 4. The companies included in this report are tagged as high-tech companies in the IVC database 5. Company Stage: Each Company is classified according to one of four development stages as follows:

Seed

Early stage of product development and fundraising

R&D

Improvement of the product/process/service and their adaptation to market needs

Initial Revenues

A company whose Yearly revenue does not exceed $10M

Revenue Growth

A company whose Yearly revenue exceeds $10M AND has a double-digit annual growth rate

Dealroom: 1. Definition of a Tel Aviv tech company : Companies designed to grow fast. Generally, such companies are VC-investable businesses. Only companies founded since 1990 are included in this report. 2. Definition of a Unicorn : Unicorns are (former) startups that reached 1 B US$ valuation or exit at one point in time. 3. Regional Breakdown : Companies represented in this report have their HQ in the Greater Tel Aviv Area, or have relocated their HQ abroad while maintaining a branch in Greater Tel Aviv.

TEL AVIV TECH / 39

Photo: ?? Photo: Oz Schechter