• Nadia Bahous

Israeli Unicorns Going Global

Updated: Apr 11

Tel Aviv - Source: Shai Pal on Unsplash
Israeli unicorns have global ambitions

The COVID-19 pandemic brought all countries around the globe last year into a scramble. Despite a rocky year for its economy in 2020, where according to Reuters in an article posted on February 16th, 2021,the Israeli economy dipped 2.4% in 2020. Yet Israel has experienced a very impressive boom within its tech ecosystem: 15 companies reached the unicorns status last year, all but one have offices based in Israel, and have joined the 45 existing Israeli companies valued at more than $1 billion, according to Tech Aviv, a collective of technology startup founders in Israel, as reported by NoCamels, a leading news website, article on December 30, 2020. In 2018, only 18 unicorn companies were existing and founded by Israelis. Today, the 45 unicorns have an estimated valuation of $92.6 billion, in addition to raising more than $41 billion to date. Together, all these firms are employing over 2550 Israelis, based on LinkedIn data of these companies. The tech ecosystem in Israel has the ambition to become a universal reference in the tech world, a model of combination of excellence and innovation.

According to Yaron Samid, founder of Tech Aviv and an entrepreneur, in an interview published on December 30, 2020 by Nocamels, a leading news website, said that “As a tech ecosystem matures, founders emerge from multiple disciplines”. According to him, skills and knowledge acquired from military careers such as cybersecurity, telecommunications, networking and semiconductors, enhance Israel’s deep tech capabilities. He highlighted the fact that nowadays, Israel benefits from other expertises such as gaming, UX, design and numerous disciplines that enhance the development of the tech ecosystem, and the internationalization of these capabilities as the top 15 Israeli unicorns HQ are distributed among Israel, NYC, Silicon Valley, and London.

Moreover, the growth market of Israeli unicorns vary and differ from a field to another where a noticeable booming of Tech app was remarkably considerable as well as other field such as: gaming, AI, Big data, Cyber security, Cloud security, Nanotechnology, Fintech, Data storage, Advertising, Analytics, and pre analytics. Also, according to Bloomberg, some investors across the globe even think that the COVID-19 pandemic is emerging as a driving force behind a revitalized and reinvigorated tech ecosystem.

Edouard Cukierman, an investment banker and a chairman of Cukierman & Co. Investment House Ltd, and managing partner of venture capital firm Catalyst Investments, stated in an interview published by Globes on April 4th, 2021, that : “ If you are a SPAC; (special purpose acquisition company) that needs an acquisition target, you will have to look into Israel opportunities”. The SPACs are firms with the main activity is raising money on a stock exchange with a main purpose of acquiring an existing firm on a fixed period of time. SPACs has defined the Israeli technology market as their target, where numerous Israeli tech firms have declared takeovers by SPACs lately, with an aggregate value reaching $40 billion.

#Israel #Techindustry #Unicorns #Internationalization #Innovation #Technology