Inside Silicon Wadi: Why VC in Israel is a booming businessApr. 10, 2016
Israel is a country of just 8.5 million people, roughly the same population as New Jersey. But the sliver of a nation on the eastern shore of the Mediterranean Sea punches well above its weight in the world of venture capital, earning the nation's tech-centric coastal area around the nickname “Silicon Wadi” (Wadi means “valley” in Arabic and Hebrew).
Since the start of 2012, 4% of all VC deals outside the U.S. have taken place in Israel, according to the PitchBook Platform. That’s the seventh most of any country, trailing only China, India, the U.K., Germany, France and Canada—all of which dwarf Israel in terms of GDP.
There were 326 VC investments completed in Israel during 2015, some of the largest among them a $105 million round raised by software company ironSource and a $60 million round for freelance marketplace Fiverr. Nearly 60% of these deals were in the information technology sector, supporting the nation’s reputation as a hub for high-tech innovation.