Israeli Startups Are Booming in New York City

Guy Franklin tracks the growing Israeli startup scene in his spare time.
Guy Franklin tracks the growing Israeli startup scene in his spare time.

“Startup Nation” actually breeds a lot of U.S.-based firms — especially in New York City.

About ten new Israeli startups are added to the New York community every month, a trend Guy Franklin has been noticing for the past six months.

Franklin works as an accountant at Ernst & Young but tracks Israeli startups in his spare time. When he started Israeli Mapped in NY in 2013, there were about 60 Israeli startups in New York. Now there are roughly 200.

Israel has the highest density of tech startups in the world. There are currently 62 Israeli companies listed on the Nasdaq exchange (it’s the third highest country behind the U.S. and China) with a combined market value of $36 billion. Israel also spends the highest percent of its GDP on scientific R&D, according to the World Bank (4.4% compared to 2.7% for the United States).

Related: Israel’s high-tech boom

This has made the country ripe for entrepreneurial ventures. And because Israel’s tech industry has mirrored the broader sector — shifting from hardware to consumer-focused products — this necessitates moving closer to its global consumer marketplace.

Establishing a U.S. base has become “part of the evolution” of Israeli companies, according to Nili Shalev, economic minister of North America for the Government of Israel Economic Mission.

“Israel is a small country from a consumer perspective,” explains Shalev. “[Companies] needto be near the customers to adapt the product to the market needs.”

New York doesn’t just offer a mass of potential customers. Entrepreneurs have access to capital, a wealth of advisers and a shorter time difference to Israel than in the Bay Area.

Click here to read more

Source: CNN Money |  Sara Ashley O’Brien

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s