Tel Aviv climbed two positions, to #5, in Startup Genome’s Global Startup Ecosystem Ranking 2023, despite a challenging year for the tech industry worldwide. Although investment volume fell by almost half compared to 2021’s record year for fundraising (to $15.5 billion), 2022 surpassed 2020 and previous years, continuing the ecosystem’s growth trajectory toward maturity. Similarly, the value of acquisitions and IPOs was down 80% from $82.5 billion in 2021 to $16.9 billion, while still surpassing 2020’s exit total by 10%.

Beyond resilience, Tel Aviv also experienced direct year-on-year growth across key categories in 2022. Seed investments grew by 10% compared to 2021. The ecosystem saw two $1 billion+ exits in 2022, including AI-based Fintech Pagaya’s $8.5 billion IPO, and the number of unicorns grew from 33 to 57. AI-powered optimization software company Granulate was acquired by Intel for $650 million in May 2022 and Sling Insuretech’s $665 million venture round in April 2022 put the company's pre-money valuation at $2.9 billion.

Additionally, a national plan for developing human capital in high-tech was approved in September 2022. A pilot project is underway and will expand in 2023, prioritizing under-represented populations. The government also has a goal of adding 4,500 personnel from the Arab sector, 2,500 from the ultra-orthodox sector, and for 45% of trainees to be women. In June 2022, the government announced an $870 million plan to boost Cleantech innovation. The Back to Tech Incentive program aims to attract Israeli technology professionals living abroad.