Tel Aviv ranks 6th in global startup report

I’m not a huge fan of ‘beauty contests’ of startup ecosystems, but it’s helpful to compare ecosystems to measure progress, especially for the smaller or up and coming hubs. And, I do like stats.

Today The Global Startup Ecosystem Report 2020 by Startup Genome was released, ranking the top 30 and 10 runner up global startup ecosystems, with a data-driven approach based on talent availability, connectedness (density), VC activity, etc. It would be awkward if Silicon valley wasn’t the top spot, although a lot of signs are pointing to shaky foundations. It was followed by New York and London, both tied for #2, a ranking that remained unchanged since 2017.

Tel Aviv ties with Los Angeles at #6

Overall, Tel Aviv went down one spot from 2019 but faired relatively well:

• Tel Aviv ranked as #6 Startup Ecosystem Globally
• Israel’s regional sub-sector strengths include AI, Big Data & Analytics and Cybersecurity
• The National pre-seed fund and Density of Startups & R&D hubs are cited as reasons a startup should move to Tel Aviv

Covid-19 poses unique challenges

No report in 2020 would be complete without the impact of Covid-19:

• Capital availability – three out of every four startups have had the fundraising process disrupted
  • 18% with term sheets had rounds cancelled
  • 54% experienced delays
• Demand – About 72% of startups saw their revenue drop since the beginning of the crisis, with the average startup experiencing a decline of 32%. Travel, beauty and fashion and manufacturing were most impacted.
• Limited resources: Over 60% of startups have laid off employees or reduced salaries. For startups reducing FTEs, an average of 33% of jobs were cut

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Eze Vidra

Co Founder and Managing Partner at Remagine Ventures

Eze is managing partner of Remagine Ventures, a seed fund investing in ambitious founders at the intersection of tech, entertainment, gaming and commerce with a spotlight on Israel.

I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.

I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.

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