Tel Aviv companies accounted for 20% of Israeli hi-tech workforce and generated nearly half of the total volume of investments and exit value last year, according to a report published by the Tel Aviv-Jaffa Municipality Center for Economic and Social Research, Tel Aviv Global and Tourism and the IVC Research Center.
Despite the global pandemic, 2020 was a formidable year for the Tel Aviv tech scene, the report said. Investments in Tel Aviv hi-tech companies increased to $6.8 billion last year, 34% higher than in 2019 and representing 48% of all investments in Israeli tech companies.
Exits for Tel Aviv tech firms reached a record $4.43b. in 2020, up 20% compared with 2019 and 46% of all exits by value. During the past five years, the number of tech companies active in Tel Aviv grew 25%, compared with a 16% increase across Israel. Foreign investors held 68% of total investments in Tel Aviv companies, the report said.
The city has 20 unicorns, meaning start-ups valued at $1b. or more, with 14 of those joining the list during 2020, it said.
“The Tel Aviv-Jaffa innovation ecosystem enjoyed a remarkable year, breaking many records,” Tel Aviv Mayor Ron Huldai was quoted as saying in a press release. “Throughout the report, it is clear that outstanding human capital is one of the main reasons for the success of the ecosystem. Tel Aviv’s talent is a magnet for multinational corporations and foreign investors who join the growing local scene of innovators.
“The tech industry demonstrated its value to our city and country throughout this challenging year, while its cutting-edge ideas and developments remain at the forefront of global innovation. Tel Aviv-Jaffa will remain an international center of attraction for human capital and financial capital.”