“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.
Source: CNN Money | Sara Ashley O’Brien
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