Israeli high-tech’s resilience and adaptability were highlighted during a panel discussion at Google and Calcalist’s Startup Week in Tel Aviv.

The event focused on the role of Israeli innovation in the global economic landscape.

Yifat Oron of Blackstone reported that Israeli startups raised US$12 billion in 2024, a 30% increase from 2023.

Mergers and acquisitions also increased, positioning Israel as a hub for large-scale tech companies.

Professor Manuel Trajtenberg emphasized AI innovation and called for more government support for university research.

While political and global instability remain challenges, private equity continues to boost early-stage ventures.

The panel stressed the urgency of international collaboration to secure Israel’s high-tech edge.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ From struggling economy to global tech hub: Israel’s 70-year journey

When Yifat Oron says “we are needed,” she’s referencing a remarkable economic transformation backed by decades of development.

Israel transitioned from a rationed economy in the 1950s to become a country that now derives 20% of its GDP from high-tech, which drives over 45% of national economic growth1.

This transition was methodical, building on military innovation capabilities, government R&D investments (2.2% of GDP, ranking third globally), and specialized industrial parks fostering university collaborations2.

The results are quantifiable: Israel ranks second only to the US in technology companies per capita and has more companies listed on NASDAQ than any country except the US and China3.

This growth trajectory is particularly evident in funding patterns, from raising $5.24 billion in 2017 to over $12 billion in 2024, demonstrating a sustained upward trend despite regional conflicts45.

These historical foundations explain why multinational companies continue acquiring Israeli startups even during geopolitical crises. They are seeking critical technological capabilities rather than just market access.