Is Israel a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Israel has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Israel gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Israel

Funding is one of the most critical ingredients in building a successful startup – and Israel offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Israel's early-stage funding environment is dynamic, supported by notable VC firms like Pitango, Viola Ventures, and Aleph, alongside angel networks such as iAngels and OurCrowd. The Israel Innovation Authority also provides crucial government grants, including the Tnufa program for ideation and new funds for pre-seed, seed, and Series A rounds. However, challenges exist, including intense competition for talent and a potential seed-stage funding gap where companies struggle to raise follow-on rounds after initial seed investment. While overall investment has seen fluctuations, with a significant increase in early-stage funding in 2024, the number of new startups founded has declined since 2021, indicating a potential future pipeline issue. Despite global slowdowns, Israel's tech sector has shown resilience, attracting significant investment, particularly in cybersecurity and AI.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Israel has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Israel, known as the "Startup Nation," boasts a vibrant innovation ecosystem with a high density of startups per capita. This is fueled by a culture of bold thinking, risk-taking, and resilience. Coworking spaces are prevalent across Israel, particularly in tech hubs like Tel Aviv, offering flexible workspaces and networking opportunities. Numerous tech events, conferences, and workshops further support entrepreneurial activity and knowledge exchange. While the ecosystem is robust for both early-stage and mature startups, there is significant support for early-stage founders through government grants, incubators, accelerators, and early-stage focused VC funds that provide not just funding but also hands-on guidance and resources.

For many entrepreneurs, the energy and resources available in Israel can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Israel, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Israel is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Israel has a highly skilled talent pool for startups, fueled by strong educational institutions like Technion, Tel Aviv University, and Hebrew University, renowned for STEM programs. The workforce possesses key industry-specific skills in areas such as AI, cybersecurity, cloud computing, and data analysis. Beyond technical expertise, there's a strong emphasis on problem-solving, critical thinking, and adaptability. This local talent, known for its entrepreneurial spirit and innovation, is crucial to the growth and success of the Israeli startup ecosystem, often referred to as "Startup Nation". However, there is a recognized shortage in certain high-demand areas like AI, leading to efforts to attract foreign experts.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Israel can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Israel boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Israel's startup ecosystem is bolstered by robust infrastructure and support systems. This includes a high density of accelerators, incubators, and venture capital firms providing crucial funding, mentorship, and networking opportunities. Universities and research institutions contribute a strong talent pool and R&D. Government initiatives, primarily led by the Israel Innovation Authority (IIA), play a vital role. The IIA offers various grants, funding programs (like the Startup Fund and Technological Venture Incubator Program), and tax incentives to support startups at different stages, encouraging innovation and reducing risk for private investors. These resources collectively help businesses thrive in the "Startup Nation."

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Israel. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Israel Be Considered the Best Place to Launch a Startup?

There’s no doubt that Israel provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Israel face significant challenges. Competition is intense in the "Startup Nation," particularly for skilled tech talent, driving up salaries and making hiring difficult for early-stage companies. The high cost of living, especially in Tel Aviv, further increases operational expenses like salaries and rent. Regulatory hurdles and bureaucracy can also pose difficulties, including navigating company registration, obtaining necessary permits, and dealing with tax obligations. While the ecosystem is robust, these factors present notable barriers.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Israel or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Israel offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash