This story originally appeared in the JC Israel Briefing. You can sign up to receive the briefing daily here.
Tel Aviv has been ranked the world’s fourth strongest startup ecosystem, cementing its position as one of the globe’s leading centres for innovation despite nearly three years of war.
According to the 2026 Global Startup Ecosystem Report, unveiled this week by Startup Genome and the Global Entrepreneurship Network, Tel Aviv sits behind only Silicon Valley, New York and London, with an estimated ecosystem value of $250.3 billion.
The report found that the value generated by Tel Aviv’s startup sector had risen by 162 per cent compared with five years earlier. It also ranked the city fifth globally for AI-related activity and placed it among the world’s top ten ecosystems for research and development, talent and overall performance.
Mayor Ron Huldai said the ranking reflected “the strength of a city built on creativity, resilience, scientific excellence, and the ability to continuously reinvent itself in times of global change.”
“As AI, Cybersecurity, Life Sciences, and DeepTech reshape the future of the global economy, Tel Aviv remains committed to investing in the infrastructure, partnerships, and innovation frameworks needed to support the next generation of breakthrough technologies and entrepreneurs,” he said.
Artificial intelligence, cybersecurity and life sciences were identified as key drivers of growth, supported by Israel’s research institutions and continued international investment.
The report said that 130 Israeli cybersecurity companies raised $4.4 billion in 2025-26, while Apple acquired Tel Aviv-based AI company Q.AI for almost $2 billion.
Billionaire investor Bill Ackman said Israel’s intellectual assets “far exceed its liabilities”.
“This is a country that has proven itself extraordinarily over the last two years, both militarily and technologically,” he said.
Marc Penzel, founder of Startup Genome, said Tel Aviv’s enduring success stemmed from the “concentrated depth of talent and innovation” powering sectors that are shaping the future global economy.
This story originally appeared in the JC Israel Briefing. You can sign up to receive the briefing daily here.
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