TEL AVIV TECH ECOSYSTEM REPORT

TEL AVIV TECH ECOSYSTEM REPORT 2025

Photo: Oz Shecter

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Produced by Tel Aviv Global & Tourism, 2026 Data by IVC Research Center & dealroom Graphic Design by Studio Touch Mayor's Photo: Guy Yechieli Cover photo: Alexander Maistern Get a digital copy of this report and learn more about Tel Aviv Tech

TEL AVIV TECH / 3

2025 marked a record year for Tel Aviv-Yafo’s high tech industry. This was not just a year of impressive statistics, but a year driven by entrepreneurs that push the limits of creativity, and by a community that envisions the future and actively shapes a new reality. Alongside the core sectors that continue to lead the Tel Aviv ecosystem - AI, Machine Learning, Cybersecurity, and FinTech - we are excited to introduce for the first time this year the DeepTech map of Tel Aviv-Yafo. This is a field of advanced

scientific research-driven technologies, engineering ingenuity, and long-term vision, all designed to tackle some of the world’s most pressing challenges. We at the municipality, view DeepTech as a strategic field for Tel Aviv-Yafo’s future economy and scientific progress. We are committed to continuing our investments in resources and infrastructure to build partnerships that will enhance its growth and ensure the sector thrives in the city. As a tangible expression of this vision, we will inaugurate the urban campus for tech companies this year, which will serve as a hub and dedicated center for the DeepTech field, featuring laboratories and workspaces designed to meet the unique needs of research-based innovations. This reflects the growing range of companies in the field, the leading investors entering it, and the increasing interest from multinational corporations. As you review the report, I encourage you to look beyond the numbers. This year’s report reveals something even greater - the spirit of social leadership. In recent years, we have witnessed how the tech industry has evolved into more than just an economic engine; it has become a moral compass. I am thrilled to see that so many in the industry have invested their time, resources, and efforts to defend the State of Israel, fight for our liberal democracy, support civil society in times of conflict, serve in the military reserves, protect the freedom of press, and refuse to leave their homeland. These words are written in the context of a changing regional reality and at a time when the city is being called to demonstrate exceptional civic resilience. Yet, our tech industry continues to prove that it remains an anchor of stability, creativity, and hope for a brighter future. This is the power of Tel Aviv-Yafo: a city where innovation is not just about technology, but a way of life. I am proud of our tech industry and pleased to present the 2025 Ecosystem Report – a snapshot of our present and a promise for the future we will continue to build together.

Yours sincerely, Ron Huldai Mayor of Tel Aviv-Yafo

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The year 2025 will be remembered as a landmark year in the history of Tel Aviv-Yafo’s tech industry. This is not just due to the impressive figures, but also for the values they represent. Tel Aviv-Yafo continues to prove that it is more than just a business hub – it is home to a daring, innovative, and driven community that does not afraid to dream big. The city remains a magnet for unprecedented levels of international investment, surpassing $14 billion, a 70% increase from the year before.

2025 also saw record-breaking exits: from the historic WIZ exit to the major deals of Aramis and Melio, culminating in a total of $46 billion – an amount never seen before in any single year in the history of Israeli high-tech. Adding to this momentum, 23 new international organizations have opened R&D centers in the city. Together with the 167 global giants that have already made Tel Aviv their home, this has created an ecosystem that is unparalleled anywhere in the world – a true vote of confidence in the city, its human capital, and the unique ecosystem built over the years. Yet beyond economic achievements, the local tech industry has repeatedly demonstrated its powerful social and civic force. Here, innovation and entrepreneurship are deeply intertwined with responsibility, collaboration, and community engagement. This is the defining characteristic of our outstanding talent. I invite you to explore this report, feel a sense of accomplishment and pride at the insights it reveals. It is evident that the combination of technological strength and evolving dynamics in the Middle East is solidifying Tel Aviv-Yafo’s position as a strategic regional anchor. We are committed to continuing to nurture this unique ecosystem to ensure global leadership and groundbreaking achievements for years to come.

Well done! Sharon Landes-Fisher CEO, Tel Aviv Global

TEL AVIV TECH / 5

Tel Aviv Tech at a Glance In 2025, the Tel Aviv ecosystem once again demonstrated why it serves as a beacon of global innovation. With a surge in investments, the expansion of multinational companies, and a vibrant entrepreneurial community, the city continues to strengthen its position as a leading economic and technological hub on the international stage.

2,662 Tech Companies Operate in Tel Aviv The number of startups in the R&D stage increased by 5% $46 B in Exit Value Alongside steady growth in exits, two major deals led to a dramatic leap forward $14.1 B Raised by Tel Aviv Companies A 77% increase compared to 2024 23 New Multinational R&D Centers A 12% increase in the number of multinational companies (MNCs) in the city

Photo: Alexander Maistern

6 / HIGHLIGHTS

TEL AVIV TECH / 7

Where Density Drives Impact

Tel Aviv continues to solidify its position as a leading international technology hub, driven by a diverse community of entrepreneurs, companies, and investors working in synergy to create the next generation of innovation.

190 Multinational Corporations

2,662 Tel Aviv Tech Companies

1,000+ Tech Meetups

385 Investor Offices

14 Academic Institutions

189 Accelerators

84 Co-working Spaces

1,657 Local & International Investors

8 / HIGHLIGHTS

The Heart of the Startup Nation

Regional Distribution in Israel

2,380

3,504

2,662 31%

Tech Companies

59 65%

23

9

Unicorn Companies

65% $14,169

$4,737

$2,827

Capital Raised (Millions)

$12,309

$1,582

$6,213 * 30%

Exit Value (Millions)

187

137

37% 190

Multinational R&D Centers

25% 101

409

Employees** (Thousands)

Tel Aviv Rest of Israel * Excluding Wiz (32B$) and Armis (7.75B$) deals ** Data from the Israeli CBS / Innovation Authority Metro Tel Aviv

TEL AVIV TECH / 9

Tel Aviv is a Global Tech Powerhouse

#1 Startup to Unicorn Conversion #4 Global Startup Ecosystem $571 B Ecosystem Enterprise Value

Global Ecosystem in Knowledge

Global Ecosystem in Talent & Experience

Global Ecosystem in Funding

10 / HIGHLIGHTS

NonStop Tech Events

DeepTech Week AI Week Journey CyberWeek MusicTech

EnergyTech PlanetTech Pitch Battle DefenseTech Week Debug Your 2026 MNC's Summit Angle Roundtables The Founders Toolbox Cyber Tech Sparks

TEL AVIV TECH / 11

Photos: Alejandro Safdie, Neo Media, Ilan Spira, Dror Sithakol, Studio Art

12 / TECH COMPANIES

Revenue Growth Initial Growth

R&D Seed Investors

TEL AVIV TECH / 13

ALONGSIDE STABILITY IN THE TOTAL NUMBER OF COMPANIES, A SIGNIFICANT STRENGTHENING WAS RECORDED IN THE R&D STAGE, WITH A 5% INCREASE, AND IN THE GROWTH STAGE, WITH A 9% RISE. THIS COMBINATION INDICATES THE RESILIENCE OF THE ECOSYSTEM AND THE MATURATION OF THE NEXT GENERATION OF TECHNOLOGY IN THE CITY.

Number of Tel Aviv Companies by Growth Stage

2,739

2,731

2,662

2,652

2,662

2,699

300

280

317

274

300

318

1,331

1,242

1,212

1,364

1,415

1,407

884

933

859

858

770

802

261

252

217

217

167 2020

165 2021

2022

2023

2024

2025

Revenue Growth

Initial Revenues

R&D

Seed

14 / TECH COMPANIES

Leading sectors by Number of Companies

AI 1,490

RetailTech 184

Machine Learning 513

AdTech 183

SaaS 512

IoT 166

Cyber Security 450

Gaming 162 DevOps 150

FinTech 447

Cloud 310

Insurtech 130 Blockchain 111 PropTech 100

Big Data 273

Generative AI 243 Marketing Tech 228

96 NLP 98

211

Digital Health

Automotive

*Companies may be tagged under multiple verticals

TEL AVIV TECH / 15

This year’s sector analysis points to a shift in priorities within the ecosystem, with a clear movement toward Deep Tech and strategic needs. While the Quantum Technology sector led growth with an increase of approximately 36%, it was followed by Defense Tech and Deep Tech. At the same time, we are seeing a contraction in consumer - and leisure-oriented sectors such as Metaverse and Fashion Tech, which recorded double-digit declines. This trend reflects the maturity of the market and a growing focus on solving complex problems with global impact.

Highest 1YOY growth rate sectors in number of companies

35.71% Quantum Technology

11.11% Defense Tech

8.57% Deep Tech

3.93% Cyber Security

1.15% AI

Sectors that Suffered the Highest Downturn in Number of Companies

-10.26% Metaverse

-10.48% EdTech

-10.71% Augmented Reality

-11.11% Fashion Tech

-12.50% Medical Cannabis

16 /

Tel Aviv's Deep Tech Landscape Tel Aviv Deep Tech companies with over $1M in funding. TECH COMPANIES

TEL AVIV TECH / 17

FFoouunnddeer r aat t PPaal ol o A l tl too N eet tw oor rkks s

For the full DeepTech map

Source:

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TECH COMPANIES

Spotlight on Deeptech 644 DeepTech Companies $28.0B

Company Valuations (in Billions)

$21.0B

$14.0B

$7.0B

2011

2017

2010

2016

2013

2015

2019

2014

2018

2012

2021

2023

2025

2022

2020

2024

Leading DefenseTech Sub Sectors By Share of Companies

Industrial DeepTech 16%

All Infrastructure 21%

Robots & Autonomous 11%

Others 24%

Bioengineering 28%

Top 10 DeepTech Companies' Capital Raised in 2025

Source:

TEL AVIV TECH / 19

TALENT

Talent Driving Global Impact

Number of Employees in Tel Aviv

Revenue Growth 98,654

Initial Revenues 27,276

9,720

1,019

R&D

SEED

18,614

One in five employees in the city works in the tech industry

Multinational Employess in Tel Aviv

When you look at the outcomes - such as the number of startup founders per capita - Israel performs much better. Most of the developers at our company, and in other Silicon Valley companies, are foreigners, including Israelis.

Nir Zuk, Founder at Palo Alto Networks

20 /

TALENT

From Top-Tier Academia to the Forefront of Tech Tel Aviv hosts a high concentration of higher education institutions across fields such as research, engineering, life sciences, education, and applied disciplines. Within a compact urban area, the city brings together leading research universities, academic colleges, and professional training centers, all of which play a central role in driving one of the world’s most dynamic innovation ecosystems. At the heart of this academic system stands Tel Aviv University, the largest and most diverse university in Israel, recognized globally both for its research excellence and for its significant contribution to the growth of venture-backed startup founders.

Photo: Michal Rosh Ben Ami

TEL AVIV TECH / 21

According to the 2025 PitchBook University Rankings, Tel Aviv University is ranked 7th in the world and 1st outside the United States in the number of founders of venture capital–backed startups. Over the past decade, 865 alumni have founded 736 venture-backed companies, which together have raised a total of $30 billion.

Top 10 universities ranked for entrepreneurs

Ranking

University

Founder count

Company count

Capital raised

University of California, Berkeley

1

1,804 1,650 $69.0B

1,519 1,380 $102.2B

Stanford University

2

1,355 1,237 $61.6B

Harvard University

3

1,206 1,113 $120.4B

University of Pennsylvania

4

Massachusetts Institute of Technology (MIT)

1,131 1,019 $69.8B

5

944

903 $42.8B

Cornell University

6

865

736 $30.0B

Tel Aviv University

7

850

774 $24.0B

University of Texas, Austin

8

University of Michigan, Ann Arbor

845

787 $30.2B

9

Technion - Israel Institute of Technology

783

671 $26.7B

10

*Source:

HIGHLIGHTS 22 / UNICORNS

Photo: Alexander Maistern

TEL AVIV TECH / 23

WITH 9% OF SEED-FUNDED STARTUPS BECOMING UNICORNS, TEL AVIV DEMONSTRATES A WORLD-CLASS CONVERSION RATE, REFLECTING THE ELITE CALIBER OF ITS FOUNDERS AND THE ECOSYSTEM'S CAPACITY FOR HYPER-GROWTH.

Tel Aviv Unicorns 58

Accumulated Value $210 B

The first generation of Israeli entrepreneurs raced toward exits; the new generation is racing for gold.

Jeff Horing, Co-Founder and Managing Director of Insight Partners

24 / MULTINATIONAL PRESENCE

MULTINATIONAL R&D CENTERS IN TEL AVIV

TEL AVIV TECH / 25

26 / MULTINATIONAL PRESENCE

WITH 23 NEW R&D CENTERS ESTABLISHED THIS YEAR, THE INTERNATIONAL MARKET CONTINUES TO DEMONSTRATE CONFIDENCE IN AND RECOGNIZE THE VALUE OF TEL AVIV’S TALENT.

Growth in Number of Multinational R&D Centers

190

174

164

156

143

121

2020

2021

2022

2023

2024

2025

TEL AVIV TECH / 27

VivaTech Paris: A Springboard to the Global Stage The participation of the Tel Aviv Tech delegation at the VivaTech conference brought the spark of local innovation to the forefront of the international stage. The initiative created opportunities for 11 growth-stage startups to gain exposure to the European market, network with investors, and connect directly with global strategic partners.

67 Business Meetings

11 Tel Aviv Startups

180K Participants

28 / HIGHLIGHTS INVESTORS

Photo: Alexander Maistern

TEL AVIV TECH / 29

THE ECOSYSTEM’S STEADY GROWTH FURTHER STRENGTHENS TEL AVIV’S POSITION AS A STRATEGIC HUB FOR INTERNATIONAL INVESTORS.

Leading investors countries

30 / HIGHLIGHTS INVESTORS

INTERNATIONAL CONFIDENCE IN THE TEL AVIV ECOSYSTEM REMAINS STRONG; EVEN IN THE FACE OF ONGOING GEOPOLITICAL CHALLENGES, THE CITY CONTINUES TO SERVE AS A STRATEGIC MAGNET FOR GLOBAL CAPITAL. THIS STRENGTH IS REFLECTED IN THE HIGH PRESENCE OF FOREIGN AND ACTIVE INVESTORS, WHO ACCOUNT FOR MORE THAN 60% OF ALL INVESTMENT ACTIVITY IN THE CITY.

1,657 INVESTORS*

In 2025 alone 617

Share of Foreign and Local Investments in Tel Aviv Companies

61% Foreign Investors

39% Local Investors

* 2019-2025

TEL AVIV TECH / 31

Growth in Number of VC Investors

422

384

313

293

252

200

2020

2021

2022

2023

2024

2025

2025 Investors by Type

VC Fund 41%

Investment Company 10%

Private Equity Fund 5%

Corporate Accelerator 4%

General Accelerator 4%

Others 33%

Angel Club / Group 3%

32 / CAPITAL RAISED

TEL AVIV–BASED COMPANIES RAISED $14.1 BILLION IN FUNDING - A 77% SURGE COMPARED TO THE PREVIOUS YEAR. THIS FIGURE REFLECTS THE STRENGTH OF THE ECOSYSTEM AND THE CONFIDENCE OF GLOBAL INVESTORS IN THE CITY’S TECH COMPANIES.

Capital Raised by Tel Aviv Companies (Millions)

$ 20,729

$14,169

77%

$10,644

$8,423

$7,976

$ 4,788

2020

2021

2022

2023

2024

2025

599

773

609

342

114

378

# of Total Rounds

Revenue Growth

Initial Revenues

R&D

Seed

TEL AVIV TECH / 33

18 COMPANIES RAISED MEGA-ROUNDS OF OVER $100 MILLION. ALONGSIDE RAPIDLY GROWING STARTUPS, NOTABLE FUNDING ROUNDS WERE ALSO RECORDED BY ESTABLISHED AND MARKET-LEADING COMPANIES SUCH AS WIX, SSI, AND CHECK POINT.

15 Companies Raised Mega Rounds Over $ 100 Million

600

940

435

300

300

289

285

250

165

150

120

110

100

100

100

34 / EXITS

Photo: Alexander Maistern

TEL AVIV TECH / 35

THE YEAR WAS CHARACTERIZED BY A RECORD-BREAKING VOLUME OF DEALS, EVEN BY GLOBAL STANDARDS. ALONGSIDE ROBUST ONGOING ACTIVITY, SEVERAL MEGA-DEALS STOOD OUT, SURPASSING EXPECTATIONS AND DRIVING AN UNPRECEDENTED INCREASE IN BOTH THE NUMBER AND VALUE OF EXITS IN THE CITY, WITH 2025 TOTALING $46 BILLION.

Value and Number of Tel Aviv Exits

+$32,000

$10,856

$10,296

+$7,750

$8,968

$8,202

$6,213

$4,394

2020

2021

2022

2023

2024

2025

68

110

62

46

64

92

Total # of Exits

IPO (Millions)

Acquired (Millions)

36 /

EXITS

M&A'S LARGER THAN 100M$ IN 2025

$32B

$7.75B

$2.51B

$350M

$329M

$570M

$239M

IPO

IPO

$225M $200M

$200M

$200M

$188M

TEL AVIV TECH / 37

Leading Sectors by Exit Value

1 AI 2 FinTech 3 SaaS 4 PayTech

$180M

$160M

$150M

$120M

5 Generative AI 6 Cyber Security 7 Cloud 8 Data Analytics 9 Travel Tech 10 Data Infrastructure

$110M

$105M

$100M

$100M

$100M

38 /

Methodology

IVC 1. The data in the report is updated to February 4, 2026 .

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: Barak Brinker