Tel Aviv ranked fourth among global startup hubs

The report highlighted artificial intelligence, big data, analytics, cybersecurity, and life sciences as the primary drivers of Tel Aviv’s growth.

By Pesach Benson, TPS

Tel Aviv-Jaffa has been ranked for the second consecutive year as the world’s fourth-leading startup ecosystem, according to Startup Genome’s Global Startup Ecosystem Report 2026, placing it behind only Silicon Valley, New York, and London.

The report was unveiled on Wednesday at the VivaTech conference in Paris.

“What distinguishes Tel Aviv is not only its ranking, but the concentrated depth of talent and innovation driving it, especially in AI and big data, cyber, and life sciences,” said Marc Penzel, founder and president of Startup Genome, an international research and advisory firm focused on innovation ecosystems.

“Maintaining fourth place globally year after year signals an ecosystem that has built a lasting competitive advantage in sectors defining the emerging global economy.”

According to the report, Tel Aviv’s ecosystem value surged 162% to $250.3 billion compared with its previous 2021 benchmark, based on data collected between July 1, 2023, and December 31, 2025.

The firm defines ecosystem value as the combined economic impact of startup exits and valuations.

The report highlighted artificial intelligence, big data, analytics, cybersecurity, and life sciences as the primary drivers of Tel Aviv’s growth.

The city ranks fifth globally in AI startups and is among the global top 10 in R&D strength, talent retention, and performance metrics.

It also described Tel Aviv as “defined by a culture of entrepreneurship, where ambitious founders, world-class technical talent, and a collaborative community converge to turn complex challenges into globally scalable innovation.”

In 2025, Israeli tech companies raised approximately $15.6 billion in private funding, while exits reached roughly $46 billion, driven largely by cybersecurity and defense technology deals.

“In Israel’s case, the value of its assets, particularly intellectual assets, far exceeds its liabilities.

This is a country that has proven itself extraordinarily over the last two years, both militarily and technologically,” the report quoted investor Bill Ackman as saying.

Ackman is the founder and CEO of New York-based Pershing Square Capital Management.

Growth Drivers Ahead

Policy and infrastructure development are also accelerating. In July 2025, the Israel Innovation Authority launched new state-backed technological incubators, each eligible for up to $11.9 million in funding for deep-tech ventures.

In January 2026, the government announced a $280 million national AI supercomputer initiative aimed at strengthening high-performance computing capacity for startups and research institutions.

Locally, Tel Aviv-Jaffa is advancing long-term planning through its municipal innovation arm, Tel Aviv Global.

Following a 2025 strategic plan, the city is developing a large-scale tech campus expected to open in 2026–2027, alongside initiatives to consolidate its innovation ecosystem and expand global partnerships.

“Tel Aviv’s continued ranking as the No. 4 startup ecosystem in the world reflects far more than economic success. It reflects the strength of a city built on creativity, resilience, scientific excellence, and the ability to continuously reinvent itself in times of global change,” said Mayor Ron Huldai in a municipal statement.

The report further noted sector-specific momentum, including Apple’s acquisition of Tel Aviv-based AI startup Q.AI for nearly $2 billion, $4.4 billion in cybersecurity funding across 130 startups, and life sciences collaborations showcased at Biomed Israel 2026.

It also highlighted The NEXT 2026 summit, which brought venture capital firms and startups together to discuss capital formation and innovation trends.

The rankings were based on an analysis of 5.5 million companies across 350 ecosystems.