First, it has a high concentration of startups – at least 6,000. Per capita, with its population and startups would mean it has around 1,400 startups per person, which is the highest in the world.
According to a report from Deloitte, 2,000 startups in Israel were founded in the past decade, with another 3,000 are small and medium-sized startup and high-tech companies, 30 are growth companies, 50 are large technology companies, and 300 are multinational corporations (MNC) research and development (R&D) centres.
The country has produced several prominent unicorns both in the fintech space and in tech in general. Just last year there were fifteen Israeli-founded companies that joined the unicorn club with respect to tech.
With respect to fintech, some of the most famous unicorns that are Israeli/Israeli founded are eToro, Lemonade, Rapyd and Payoneer, which the ladder is planning to go public and be listed on the Nasdaq Stock Exchange in New York City.
Rapyd also made recent headlines by raising $300 million Series D financing round led by Coatue. Several new investors participated in the financing, including Spark Capital, Avid Ventures, FJ Labs, and Latitude, along with further investment from current investors General Catalyst, Oak FT, Tiger Global, Target Global, Durable Capital, Tal Capital, and Entrée Capital.
In terms of wider innovation in general, Israeli unicorn inventions include world-renowned companies like WeWork, Waze, Fiverr – to name a few.