Israel’s startup machine never stops, but most companies don’t make it
Central Bureau of Statistics figures reveal a relentless pace of new ventures and a majority that fail.
The Central Bureau of Statistics (CBS) on Tuesday released a report tracking the activity of startup companies in Israel between 2011 and 2024. According to the report, 4,493 startup companies were operating in Israel in 2024, reflecting an average annual increase of approximately 2% over the period.
The report also shows that as of 2024, these companies employed about 32,400 people, marking a decline compared with 2023. Between 2011 and 2024, a total of 10,157 startup companies were established in Israel, 5,740 of which ceased operations by the end of 2024.
The average monthly salary per employee in these companies stood at 27,200 shekels in 2024, an increase of 4% from 2023. This figure is 2.1 times higher than the average monthly salary across the broader economy, but about 15% lower than the average salary in the high-tech sector as a whole. Geographically, 74% of the companies and 80% of salaried positions are concentrated in Tel Aviv and the central region.
Of all startup companies, 14% were classified as high-growth firms. High-growth companies are defined as those with at least 10 salaried employees and an average annual employment growth rate exceeding 20% over a three-year period.
Between 2022 and 2024, startup companies received grants totaling 2.1 billion shekels from the Israel Innovation Authority, accounting for roughly 50% of the authority’s total grant funding during that period. Semiconductor companies attracted the highest level of government support.
