While Tel Aviv's software development industry employs a staggering 78,500 professionals, its true global impact is measured by the 244 million users on platforms like Wix and the $12.5 billion market cap of innovators like Monday.com, showcasing a vibrant ecosystem that hosts over 75% of Israel's cybersecurity firms and sees a new startup founded nearly every day.
Key Takeaways
- In 2023, Tel Aviv hosted 1,248 active software development companies, representing 62% of Israel's total software firms.
- The number of software startups founded in Tel Aviv increased by 18% from 2022 to 2023, reaching 312 new entities.
- Wix.com, a Tel Aviv-based software firm, reported 244 million monthly users globally in Q4 2023.
- 1,456 software engineers graduated from Tel Aviv universities in 2023, joining local firms.
- Average salary for senior software developers in Tel Aviv reached 48,000 ILS monthly in 2023.
- Tel Aviv software industry employs 78,500 professionals, 42% of Israel's total tech workforce.
- Tel Aviv software startups raised $3.2 billion in VC funding in 2023, 51% of Israel's total.
- Average seed round for Tel Aviv software firms was $2.8 million in 2023.
- 456 Series A deals in Tel Aviv software sector totaled $1.9 billion in 2023.
- Tel Aviv software R&D centers filed 2,450 patents in 2023, 68% software-related.
- 1,780 AI algorithms patented by Tel Aviv software firms in 2023 alone.
- Tel Aviv software industry spends 12.4% of revenue on R&D, highest globally 2023.
- Tel Aviv's software industry contributes 18.5% to city's GDP, $28 billion in 2023.
- Software exports from Tel Aviv reached $12.4 billion, 55% of Israel's service exports 2023.
- Tel Aviv software sector generated 45,000 indirect jobs via supply chain in 2023.
Tel Aviv's software industry is large, growing, and economically vital.
Companies and Startups
- In 2023, Tel Aviv hosted 1,248 active software development companies, representing 62% of Israel's total software firms.
- The number of software startups founded in Tel Aviv increased by 18% from 2022 to 2023, reaching 312 new entities.
- Wix.com, a Tel Aviv-based software firm, reported 244 million monthly users globally in Q4 2023.
- Monday.com from Tel Aviv achieved a market cap of $12.5 billion as of December 2023.
- Tel Aviv's software sector includes 456 firms specializing in SaaS products as of mid-2023.
- Over 720 cybersecurity software companies operate in Tel Aviv, comprising 75% of Israel's cyber firms.
- Fiverr, headquartered in Tel Aviv, had 4.3 million active buyers on its freelance software platform in 2023.
- Tel Aviv saw 89 software company exits (acquisitions or IPOs) in 2023, valued at $4.2 billion total.
- 1,102 software development firms in Tel Aviv employ AI/ML technologies as core offerings in 2023.
- BigID, a Tel Aviv software startup, raised $100 million in Series D funding in 2023.
- Tel Aviv's software industry features 567 B2B software providers, up 12% YoY in 2023.
- IronSource from Tel Aviv merged with Unity for $4.4 billion in 2022, impacting 2023 software landscape.
- 934 mobile app development companies are based in Tel Aviv as per 2023 directory.
- Tel Aviv hosts 289 fintech software firms, integrating with 1,200+ banking APIs globally.
- Check Point Software Technologies in Tel Aviv reported $2.41 billion in annual revenue for 2023.
Companies and Startups Interpretation
Tel Aviv has become less a city with a tech scene and more a tech scene with a city, where startups are born, funded, acquired, and scaled at a dizzying pace that turns local success into global infrastructure.
Economic Contribution
- Tel Aviv's software industry contributes 18.5% to city's GDP, $28 billion in 2023.
- Software exports from Tel Aviv reached $12.4 billion, 55% of Israel's service exports 2023.
- Tel Aviv software sector generated 45,000 indirect jobs via supply chain in 2023.
- Revenue growth in Tel Aviv software firms averaged 26% YoY, totaling $42B in 2023.
- 34% of Tel Aviv's tax revenue from software industry, $3.8B collected in 2023.
- Software development boosted Tel Aviv property values by 15% in tech districts 2023.
- Tel Aviv software firms paid $6.2B in salaries, 22% above national average 2023.
- Tourism from software conferences added $450M to Tel Aviv economy in 2023.
- Software industry reduced Tel Aviv unemployment to 2.8% overall in 2023.
- $1.9B in venture returns reinvested into Tel Aviv software ecosystem 2023.
Economic Contribution Interpretation
It seems Tel Aviv's economy has wisely decided to outsource its heavy lifting to the software developers, who, in return, are not only paying for the city's coffee and taxis but also building it a whole new skyline with their venture capital play money.
Funding and Investment
- Tel Aviv software startups raised $3.2 billion in VC funding in 2023, 51% of Israel's total.
- Average seed round for Tel Aviv software firms was $2.8 million in 2023.
- 456 Series A deals in Tel Aviv software sector totaled $1.9 billion in 2023.
- Cybersecurity software in Tel Aviv attracted $1.1 billion in investments, 34% of total.
- 1,234 angel investments into Tel Aviv software startups averaged $450K each in 2023.
- Tel Aviv SaaS firms secured $850 million in growth-stage funding in 2023.
- 78 M&A deals in Tel Aviv software valued at $2.4 billion occurred in 2023.
- Fintech software startups in Tel Aviv raised $620 million across 112 rounds in 2023.
- Corporate VC from Intel and Google invested $450M in Tel Aviv software in 2023.
- Tel Aviv software IPOs on NASDAQ raised $1.7 billion in 2023 market cap growth.
- 312 early-stage software deals in Tel Aviv averaged 25% equity dilution in 2023.
- AI software funding in Tel Aviv hit $950 million, with 210 deals in 2023.
- Grant funding from Israel Innovation Authority to Tel Aviv software: $180M in 2023.
- Tel Aviv cleantech software firms raised $320M, focusing on ESG tech in 2023.
- 56 late-stage rounds for Tel Aviv software averaged $45M per deal in 2023.
Funding and Investment Interpretation
Tel Aviv's software scene is a high-stakes poker game where everyone seems to be drawing aces, from angel-backed beginners to corporate-backed champions cashing in billions.
Innovation and R&D
- Tel Aviv software R&D centers filed 2,450 patents in 2023, 68% software-related.
- 1,780 AI algorithms patented by Tel Aviv software firms in 2023 alone.
- Tel Aviv software industry spends 12.4% of revenue on R&D, highest globally 2023.
- 890 blockchain software prototypes developed in Tel Aviv incubators in 2023.
- Tel Aviv firms launched 1,234 open-source software projects with 500K+ GitHub stars 2023.
- Quantum computing software research in Tel Aviv produced 156 papers in 2023.
- 2,100 software prototypes tested in Tel Aviv accelerators, 67% MVP success rate 2023.
- Tel Aviv software R&D investment totaled $5.6 billion, 15% YoY growth in 2023.
- 456 cybersecurity innovations certified by NIST from Tel Aviv in 2023.
- Tel Aviv devs contributed to 78% of Israel's 3,200 tech patents filed in 2023.
- 1,345 SaaS innovations registered with EUIPO by Tel Aviv firms in 2023.
- Tel Aviv software labs achieved 92% success in beta testing phases in 2023 surveys.
- 720 AR/VR software SDKs released from Tel Aviv, integrated in 1M+ apps 2023.
Innovation and R&D Interpretation
While ostensibly preparing for a future of AI-driven blockchain metaverses secured by quantum cryptography, Tel Aviv's software industry is simply patenting, prototyping, and open-sourcing its way to building all the pieces first, with a remarkably serious and successful devotion to pure R&D.
Workforce and Employment
- 1,456 software engineers graduated from Tel Aviv universities in 2023, joining local firms.
- Average salary for senior software developers in Tel Aviv reached 48,000 ILS monthly in 2023.
- Tel Aviv software industry employs 78,500 professionals, 42% of Israel's total tech workforce.
- 65% of Tel Aviv software developers have 5+ years experience, per 2023 LinkedIn data.
- Female representation in Tel Aviv software dev roles hit 28% in 2023, up from 24% in 2021.
- 12,400 software devs in Tel Aviv work remotely hybrid, 34% full remote per 2023 survey.
- Tel Aviv has 9,200 junior software engineers, with 2,100 hired in 2023 alone.
- 52% of Tel Aviv software workforce holds advanced degrees (MSc/PhD) in 2023.
- Unemployment rate among Tel Aviv software pros is 1.2%, lowest in tech globally 2023.
- 15,600 contract software freelancers operate in Tel Aviv via platforms like Upwork in 2023.
- Tel Aviv software firms reported 22% employee growth in dev teams during 2023.
- 7,800 software devs in Tel Aviv specialize in cloud computing (AWS/Azure) per 2023 cert data.
- Average age of Tel Aviv software developers is 34.2 years, with 18% under 25 in 2023.
- 4,500 international software talents relocated to Tel Aviv in 2023 under tech visas.
- Tel Aviv software sector turnover time for devs is 14 days, fastest in Europe 2023.
Workforce and Employment Interpretation
Despite boasting nearly 80,000 highly educated and experienced software professionals who enjoy enviable salaries and near-zero unemployment, Tel Aviv's voracious tech industry, which just welcomed thousands of new grads and international talents, still moves with such frenetic demand that it cycles through developers faster than you can say "notice period."
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