Tel Aviv also ranked fifth among cities worldwide for AI startups.
By Shula Rosen
Tel Aviv-Yafo was named the world’s fourth-largest startup ecosystem in Startup Genome’s latest global rankings, with the city’s innovation sector valued at $250.3 billion and trailing only Silicon Valley, New York and London.
The ranking, released Tuesday at the VivaTech conference in Paris, marks the second consecutive year that Tel Aviv has held the No. 4 position in Startup Genome’s Global Startup Ecosystem Report.
Startup Genome, which researches technology and entrepreneurship hubs worldwide, said its findings are based on an analysis of more than 5.5 million companies operating across more than 350 startup ecosystems. The report evaluates leading centers of innovation and identifies trends shaping the global technology sector.
The organization said Tel Aviv’s ecosystem value reached $250.3 billion during the period from July 1, 2023, through Dec. 31, 2025. The total reflects a 162% increase compared with the firm’s previous report published in 2021.
Startup Genome measures ecosystem value using startup valuations and exit activity as indicators of economic impact.
The report identified artificial intelligence, big data, analytics, cyber technologies and life sciences as the sectors contributing most significantly to Tel Aviv’s growth.
It also ranked the city fifth worldwide for AI startups. In separate measures evaluating research and development capabilities, workforce quality, talent retention and overall performance, Tel Aviv placed among the top 10 globally.
Marc Penzel, founder and president of Startup Genome, said the city’s strength lies in the concentration of expertise and innovation across several high-growth industries.
“What distinguishes Tel Aviv is not only its ranking, but the concentrated depth of talent and innovation driving it, especially in AI and big data, cyber and life sciences,” Penzel told Ynet, “Maintaining the fourth place globally year after year signals an ecosystem that has built a lasting competitive advantage in sectors defining the emerging global economy.”
Mayor Ron Huldai said the municipality continues to invest in the local technology sector through Tel Aviv Global, a city-backed initiative that supports startups, expanding companies and multinational firms operating in the city.
“Innovation in Tel Aviv-Yafo is not only an industry; it is part of the city’s identity and way of life,” Huldai said.
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