
by techcrunch.com — Ingrid Lunden, Ron Miller — The world is still coming to terms with Hamas’ deadly attacks on Israelis last weekend — and everything else that has unfolded so far in the aftermath, including the barrage of retaliation strikes on Gaza. A look at how the situation is playing out in the startup ecosystem sheds light on its impact to the country as a whole. In such a small country, just about everyone knows someone who was directly affected by the attacks, or someone involved in the subsequent defense and retaliation — and often all three. Technology is, without question, a giant part of Israel’s economy. In 2022, it contributed more than 18% of the country’s GDP, the most of any single sector, according to the latest annual report from the Israel Innovation Authority.
A total of 14% of Israeli citizens work in high tech, which in a country of just 9.2 million people works out to about 1.3 million. The active number of startups in the country is 9,000 (third-highest in the world after the Bay Area and NYC) and these startups have collectively, in the last five years, brought $95 billion into the country by way of venture capital. Combining the business development of startups with larger tech companies in the country — Intel, Microsoft, Nvidia, Google and many others have operations in Israel — they collectively exported $71 billion last year, 48.3% of the total amount exported across all industries. Undoubtedly, those numbers are all going to be significantly lower this year, not least because the disruptions of this war are coming directly on the heels of a major protest movement.








