Tel Aviv ranks as the No. 4 Global Startup Ecosystem, moving up one spot from last year in the 2025 Global Startup Ecosystem Report (GSER), it was revealed on June 12 at VivaTech in Paris, an annual technology conference dedicated to innovation and startups.
A Global Ecosystem is measured by the size and performance based on the accumulated tech startup value created from capital exits and funding.
Widely regarded as the world’s most comprehensive research on startup ecosystems, the GSER, now in its 13th year, analyzes data from more than 5 million companies across 350-plus entrepreneurial innovation ecosystems worldwide, according to a statement released by Israel’s Government Press Office on Monday.
“Tel Aviv’s position as the No. 4 Global Startup Ecosystem continues to impress as it maintains its edge against cities three to 10 times its size,” said J.F. Gauthier, founder and CEO of Startup Genome, which produces the report.
“This attests to the strength of its innovation ecosystem and the commitment of its leaders to fostering startup success. We value our ongoing collaboration with Tel Aviv Global,” he said.
Tel Aviv Global, an initiative launched by the Mayor’s Office of Tel Aviv-Jaffa, is committed to enhancing the city’s global standing.
Ron Huldai, mayor of Tel Aviv-Jaffa, said the ranking “reflects the deep foundations of our innovation ecosystem and the strength of our tech community.”
Other key highlights of GSER 2025 include:
• The Tel Aviv ecosystem created $198 billion in Ecosystem Value from July 1, 2022, to December 31, 2024. Ecosystem Value is a measure of economic impact, calculated as the value of exits and startup valuations.
• Top 10 Global Ecosystem in Knowledge—measures innovation through research and patent activity.
• Top 10 Global Ecosystem in Talent & Experience—measures long-term trends over the most significant performance factors and the ability to generate and keep talent in the ecosystem.
• Top 10 Global Ecosystem in Funding—measures innovation through early-stage funding and investor activity.
• No. 5 MENA Ecosystem in Bang for Buck—measures the amount of runway tech startups acquire, on average, from a VC round.
Among the sectoral drivers of startup growth in Tel Aviv: AI, cybersecurity and life sciences. In 2024–25, AI and cybersecurity startups secured multi-million-dollar rounds. Life sciences grew 25% to $2.7 billion, and major players such as Nvidia, Meta and Alphabet expanded their presence in the region.
According to the report, startups choose Tel Aviv because it offers a well-established startup ecosystem with more than 180 multinational R&D centers, targeted tax incentives and coordinated public-private support.
In 2025, new provisions supporting foreign investment and a planned $800 million innovation lab further reinforced the city’s role as a global hub for early-stage growth and scientific advancement.
Jeff Horing, Insight Partners co-founder and managing director, said: “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.”
Insight Partners, a global venture-capital and private-equity firm that invests in high-growth technology, software and Internet businesses, has offices in New York, Palo Alto, London and Tel Aviv.
Silicon Valley led the 2025 ranking, followed by New York City, London and then Tel Aviv. Boston and Beijing tied for fifth/sixth place, followed by Los Angeles.
