Scale-up House
Where Israeli Innovation Goes Global: The New York Scale-Up Connection
Thirty Israeli unicorns in Manhattan are valued at nearly 70 billion dollars. As Israeli startups shift from rapid exits to long-term growth, New York has become a vital scale-up hub - connecting Israeli innovation with the customers, capital and global expertise. >> Watch the video report “Flag in the Big Apple.”
New York. “The ability of Israeli companies to build a strong Go-to-Market arm in New York, while relying on Israeli development, is what creates the right balance for growth,” says Maya Eisen Zafrir, CEO of LeumiTech In a special video report to Calcalist from the heart of the Big Apple.
For Israeli startups looking to scale, New York has become far more than a gateway to the U.S. market: it is where Israeli innovation meets customers, capital and global business expertise. It is not replacing Tel Aviv - it is helping Israeli startups grow beyond it.
From Silicon Valley to Manhattan
Not long ago, the Israeli entrepreneurial dream was largely colored by the pastel hues of California’s Silicon Valley. In recent years, however, the compass has shifted sharply east: New York has evolved from a stopover into the main - and most sought-after—destination for Israeli entrepreneurs.
Nearly 600 Israeli technology companies now operate in Manhattan, up dramatically from just 60 in 2013. The Israeli ecosystem in the Big Apple now boasts particularly striking numbers:
- Enormous value: More than 30 Israeli unicorns operating in the city have a combined valuation of nearly 70 billion dollars.
- Employment: More than 28,000 people work for these companies in Manhattan, including many Israelis who have relocated.
- A growing community: The Israeli community has also spread to neighboring suburbs. In New Jersey towns including Tenafly, Cresskill, Demarest, and Closter, Israelis now make up close to 25\% of residents.
Proximity, Capital and Go-to-Market
The migration to Manhattan is no accident. It is driven by a mix of major strategic and practical considerations. New York offers a twofold advantage the West Coast cannot match: relative geographic proximity to Israel and extensive overlap during the working day, coupled with direct access to the beating heart of global finance.
Maya Eisen Zafrir, points to the close link between U.S. macroeconomic trends and the Israeli tech sector’s conduct: “The market is more selective and focused today, but Israeli companies’ ability to build a strong Go-to-Market function in New York while relying on Israeli development is what creates the right balance for growth.”
The city’s leading sectors - fintech and enterprise SaaS - require physical proximity to customers and major banks. As Uri Baruch Yankelev, a partner and CRO at the New York-based venture capital firm TEAM8, explains: “Because there is a community and an industry here, being able to go out and meet customers face-to-face makes a meaningful difference. And beyond that, being physically here gives you access to the entire U.S.”
Even in difficult times, the industry’s resilience has been evident on the ground: Israeli venture funds operating from New York have managed to raise hundreds of millions of dollars for new funds in relatively short periods. As Yankelev puts it: “With everything going on, instability in Israel is not at the top of investors’ list of concerns... At the height of the war, we raised a 250-million-dollar fund in less than a year.”
Deep Tech in the Heart of Manhattan
The idea that Israel handles development while New York handles sales is steadily fading. Advanced science and technology companies such as Immunai are bringing together artificial intelligence, data and complex research in the heart of Manhattan to reshape medicine.
“You can think of it as the ‘Google Maps’ of the immune system,” says Alon Shaiber, Vice President of Computational Biology at Immunai. “We help pharmaceutical companies understand why certain patients respond to treatment and others do not, enabling them to focus clinical trials and improve success rates in the development of cancer and autoimmune drugs.”
The model is translating into major deals, including an expanded collaboration with pharmaceutical giant AstraZeneca worth 37.5 million dollars. “Being located across the street from leading academic institutions and hospitals such as NYU gives us a huge advantage,” Shaiber says. At the same time, the company is retaining its Israeli core: its AI group is based entirely in Tel Aviv, “out of an understanding that the local ecosystem’s comparative advantage in development is irreplaceable.”
Business Prevails Over Politics
The events of October 7 and their impact on public life cannot be ignored. New York Police Department data showed a sharp rise in hate crimes and antisemitic incidents, alongside challenging political rhetoric from figures such as openly anti-Zionist Mayor Zohran Mamdani. Yet in the business world, the picture is markedly different: business remains professional and pragmatic.
In the year after the outbreak of the war, Israeli startups continued to post strong results, raising 10.6 billion dollars - an investment total exceeded only by tech hubs such as San Francisco, New York itself and Boston.
“There is a feeling among CEOs and employees that if there is a war on the front line, our job is to fight on the economic front,” says Shay Greenfield, founding partner at Greenfield Partners. “From October 7 to today, our companies have met their quarterly targets, every quarter, at levels above where we had been before. The team overseas stepped up to cover for employees serving in Israel’s reserves, and customers and investors received complete support, with no excuses.”
The Path to a True “Scale-Up Nation”
Alongside this growth, the 2026 figures underscore the importance of safeguarding the home base: only about 62\% of employees at private Israeli high-tech companies are now physically based in Israel, while the Israel Innovation Authority has identified a decline in the share of local managers and development professionals.
Still, New York’s Israeli ecosystem in 2026 reflects both maturity and strength. It recognizes that it is not replacing Tel Aviv, but serving as an essential forward base - giving Israeli startups the scale, access, experience and capabilities of global companies that they need in order to grow and mature. As Eisen Zafrir puts it: “The skills Israelis acquire here can help turn the Israeli market into a genuine Scale-Up Nation, rather than allowing this potential to go unrealized.”
The close connection between the sales and Go-to-Market front in Manhattan and the depth of research and innovation in Israel is creating a powerful two-way growth engine. Armed with the knowledge and capabilities gained in New York, Israeli tech is moving beyond an era of small startups and fast exits toward building global giants—helping secure Israel’s position as a leading technology powerhouse for years to come.
