Waze, Viber and Wix are just some of the success stories of the Israeli high-tech industry. Over the past decade, more than 960 Israeli start-ups have been sold in transactions that have injected more than $55 billion into investors' pockets (IVC, 2014). The success of the Israeli high-tech industry has provided Israel with a number of very flattering epithets, including Start-Up Nation, the exiting capital of Europe, Exit Nation and exotic.
As part of the global economic revolution sweeping the globe, in 2015, an additional investment option was opened to all citizens, who so far have made do with investing in bank deposits, bonds, mutual funds, etc. It is possible to invest in start-ups and join a group of investors. There has been a great deal of risk in investments of this niche, however, investors can benefit from a particularly high yield potential, and from involvement in companies that are interested in areas that they can connect with.
For those who are still not decided, here are nine great reasons why it is worthwhile to invest in Israeli start-ups:
1. Israel is the capital of exits in Europe - the British WIRED magazine has crowned Israel as the exits capital of Europe, thanks to sales and issues by Israeli technology companies worth $23 billion in 2017 and $13 billion in 2018.
2. On Nasdaq - Israel is ranked second (after China) in terms of the number of listed companies on the NASDAQ, with 80 Israeli listed companies, which together account for 20% of all registered foreign companies with a total market cap of $58 billion (Sponsors, May 2015).
3. Tel Aviv is one of the world's leading start-up cities - Tel Aviv is ranked fifth in the world and the first outside the US in the rankings of the world's best startup cities According to the World Compass Comparison study, thanks to high products, experience, entrepreneurial culture and especially talent.
4. The high density of start-ups in Europe - Tel Aviv is characterized by a high density of start-ups in Europe: between 0.85-1.15 start-ups per 1,000 residents (Startup compass, 2015).
5. The city that attracts the most foreign investment - The Tel Aviv start-up scene attracts significantly more foreign investment (38% above the European average) than anywhere else in Europe (Startup compass, 2015).
6. Exits, exits and more exits - During the last five years (2014-2018), 616 Israeli companies were purchased with an average value of $58 million per exit (IVC, 2018).
7. Return on investment (ROE) - In 2017, the average return on investment in start-ups was 4.1, meaning that on average every dollar spent returned over $4 (IVC, 2018).
8. Global Innovation - According to the World Economic Forum's World Competitiveness Report 2017, Israel is ranked 3rd in innovation, benefiting from the presence of some of the world's leading research institutions, Israel provides a positive financial environment for start-ups, policies, and implementing Government procurement.
9. Global venture capitalists express confidence - In global trust surveys conducted by venture capitalists, Israel is ranked second behind the US, with foreign investors' confidence in investments worldwide.