Tel Aviv-Yafo has been ranked for the second consecutive year as the world’s fourth-leading startup ecosystem, according to Startup Genome’s global ranking, with an ecosystem value of $250 billion. The city trails only Silicon Valley, New York and London.
Startup Genome is an international research and advisory firm focused on developing innovation ecosystems. It is best known for its annual Global Startup Ecosystem Report, or GSER, which ranks leading regions for technology entrepreneurship around the world.
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Tel Aviv-Yafo has been ranked for the second consecutive year as the world’s fourth-leading startup ecosystem
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The report, presented today at the VivaTech conference in Paris, is based on what the company describes as the world’s most comprehensive startup database, analyzing data from more than 5.5 million companies across more than 350 innovation and entrepreneurship ecosystems. It identifies global startup trends and ranks the world’s top 40 cities in the field.
The company also uses a measure it calls “ecosystem value,” an economic impact metric calculated based on startup exits and valuations. According to the report, the Tel Aviv ecosystem generated $250.3 billion in value, based on data collected between July 1, 2023, and December 31, 2025. That figure represents growth of 162% compared with the previous 2021 report.
The main fields powering Tel Aviv’s startup momentum are artificial intelligence, big data, analytics, cyber and life sciences. In AI startups, Tel Aviv ranks fifth worldwide, while across research and development, talent strength, talent retention and performance metrics, it is listed among the global top 10.
“What distinguishes Tel Aviv is not only its ranking, but the concentrated depth of talent and innovation driving it, especially in AI and big data, cyber and life sciences,” said Marc Penzel, founder and president of Startup Genome. “Maintaining the fourth place globally year after year signals an ecosystem that has built a lasting competitive advantage in sectors defining the emerging global economy.”
Tel Aviv Municipality operates Tel Aviv Global, a municipal company focused in part on strengthening and promoting the city’s innovation ecosystem, from early-stage ventures to growth companies and multinational corporations.
“Innovation in Tel Aviv-Yafo is not only an industry; it is part of the city’s identity and way of life,” Mayor Ron Huldai said in response to the report. “Tel Aviv-Yafo Municipality continues, especially these days and amid global changes and the AI revolution, to support, assist and serve as the home of Israeli startups leading the global industry and of some of the world’s most important and largest international companies.”