Why Is Silicon Wadi A Hub For Deep-tech Companies?

By Author: -
Total Articles: 24
Comment this article

Israel is the global hub for disruptive tech innovation. Israeli deep tech companies are on a mission to offer global enterprises new ways of overcoming challenges and expanding boundaries. For a population of just 9 million, it has 6,500 startups. In 2021, Israeli tech companies raised about $10 billion in IPOs, making the transition from a startup hub to a scale-up nation.

Israel is home to about 50 plus Israeli-founded Unicorns and dozens more Soonicorns nearing the magic $1 billion valuations. This success was not achieved overnight. Israel has carefully nurtured this vision of tech dominance for over 70 years!

Much before many countries were even thinking of tech, Israel had taken cognizance of its limitations of size, population, geography and decided that nurturing tech talent was the way ahead.

The journey began in 1948 when Israel received recognition as a free and independent state. A large influx of educated and tech-trained immigrants from European and North American countries provided the much-needed tech talent. Global Jewish investors helped fund Israeli universities and research institutions ...
... to nurture a new generation of tech experts. These initiatives helped support its startup industry in the 1980s and the nineties.

Global MNCs are sitting up and taking note of Israel's tech supremacy. At last count, about 250 foreign companies have R&D centres in Israel. MNCs see Israel as a viable hub for R&D for its highly trained human capital. More than 150 Israeli deep tech companies are engaged in advanced research and tech innovation.

Israel's pro-tech ecosystem

· Presence of quality tech schools and universities
· Students receive advanced computer studies
· Mandatory military service shapes young minds to perform under pressure and form strong bonds.
· Israeli tech companies are in symbiosis with the government and receive grants, incentives, and low-interest loans.
· Many former members of its military intelligence units go on to start deep tech companies

Israel's deep tech companies have a strong presence in cybersecurity, biotech, AI/VR, energy, machine learning, agritech, aerospace, defense, and more. About 300+ global tech leaders are collaborating with Israeli deep tech companies to define the future of a digital world.

Israeli startups are also keen to scale up and establish a global presence. They are no longer content to sell their companies to a tech giant. Today at least 50 Israeli companies are listing IPOs on Wall Street.

The future looks bright for Israel as a new generation of entrepreneurs receives active support from experienced serial entrepreneurs and the government. It is only a matter of time before an Israeli company achieves a valuation of $100 billion.

Israeli deep tech companies are helping Asian consumer-led companies to achieve scale. Companies like Onnivation are paving the way for a win-win situation for Asia and Israel by making Israeli deep tech more accessible.