RISE Israel, is a think tanks non-profit organization that aims to promote a competitive, sustainable and innovation-driven economy in Israel.
The agency recently published a report that revealed some worrying figures: over the past decade, the number of startups founded in Israel has decreased by 45%, from 1.432 per year in 2013 to just 788 in 2023.
The numbers are cause for concern as tech startups are a key source of jobs and one of the main drivers of the Israeli economy. The tech sector contributes 20% of the country’s gross domestic product, accounts for more than half of its total exports, and its employees generate more than a third of national tax revenue.
Some of the main factors influencing this decline are the economic effects of the war with Hamas, political instability resulting from the proposed judicial reforms, and the global context of economic slowdown.
Danny Biran, a senior researcher at RISE Israel, explained that “the decline in startups is worrying because we will have fewer companies that can employ many people in the coming years.”
