Is Tel Aviv 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.

Tel Aviv 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 Tel Aviv 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 Tel Aviv

Funding is one of the most critical ingredients in building a successful startup – and Tel Aviv 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.

Tel Aviv's early-stage funding scene is dynamic, supported by numerous VC firms like TLV Partners, Aleph, and Hetz Ventures, alongside angel networks and government initiatives such as grants from the Israel Innovation Authority. Despite a global downturn, 2024 saw an increase in both capital raised and the number of funding rounds in Israeli tech compared to 2023, with early rounds (pre-seed to Series A) accounting for a large percentage of deals. However, challenges persist, including intense competition and a notable decline in the number of new startups founded in recent years, potentially impacting the future pipeline. The uncertainty from regional instability has also posed risks to investor confidence.

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  

Tel Aviv 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.

Tel Aviv boasts a dynamic startup and innovation culture, often called "Silicon Wadi," with a high concentration of startups per capita. The city is replete with coworking spaces catering to entrepreneurs and established businesses, fostering community and collaboration. Numerous tech events, from large conferences to smaller meetups, occur regularly, covering diverse topics like AI, cybersecurity, and fintech, providing networking and learning opportunities. Entrepreneurial activity is robust, supported by a culture that encourages risk-taking and innovation. While the ecosystem has matured, there is significant support for early-stage founders through numerous accelerators and incubators, some specifically targeting this stage. These programs often provide mentorship, resources, and funding, offering personalized support alongside structured programs.

For many entrepreneurs, the energy and resources available in Tel Aviv 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 Tel Aviv, 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 Tel Aviv 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.

Tel Aviv boasts a highly skilled talent pool, crucial for its thriving startup ecosystem. Top universities like Tel Aviv University and Technion (nearby) produce graduates strong in technology, engineering, and computer science. The city is a hub for industry-specific skills in cybersecurity, AI, FinTech, and more. This concentration of talent, often with entrepreneurial drive fostered by academic and military backgrounds, directly supports startup growth by providing a skilled workforce and a network of experienced professionals. However, the high demand has also led to a competitive and sometimes challenging hiring market for startups.

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 Tel Aviv 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

Tel Aviv 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.

Tel Aviv boasts a robust infrastructure supporting its thriving startup ecosystem. This includes a high concentration of accelerators, incubators, and venture capital funds providing crucial mentorship, resources, and funding. Numerous co-working spaces and networking events foster collaboration and knowledge sharing. Government initiatives play a significant role. The Israel Innovation Authority offers funding programs and grants for startups at various stages. The Tel Aviv Municipality also actively supports startups through initiatives like Tel Aviv Tech, providing services such as access to municipal experts, beta site opportunities, property tax reductions, and subsidized workspaces. These combined resources create a fertile ground for businesses to launch and scale.

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 Tel Aviv. 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 Tel Aviv Be Considered the Best Place to Launch a Startup?

There’s no doubt that Tel Aviv 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.

Tel Aviv's thriving startup scene means intense competition for new ventures. The city's high cost of living, once ranked the world's most expensive, significantly impacts operational costs and talent acquisition as startups compete with larger companies offering higher salaries. While Israel has a strong innovation environment, regulatory hurdles and a business climate that lags behind competitors can pose challenges for startups navigating legal frameworks and seeking international collaboration.

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 Tel Aviv or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Tel Aviv 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