Half of the startups that opened in Israel – closed – general

In the second half of the 1990s, anything that smelled a bit like high-tech got insane values. The bursting of the dot.com bubble in 2000, led to a significant decline in investment in the sector over the years, long after the markets began to recover in 2002, but in the previous decade we saw a resurgence in the field, as more and more companies began to open and receive attention Public, mainly in the form of issues on the Nasdaq.

A new report by the Central Bureau of Statistics reveals the trends that dominated the past decade in the field of startups. From 2011 to 2019, 6,326 start-up companies were opened in Israel. 2,922 of them (46%) closed or suspended their activities until 2019.

In 2019, there were 4,658 start-up companies in Israel, a decrease of 5% compared to 2018, an average annual increase of 5% compared to 2011. Last year, a decrease in the opening and closing balance of start-up companies was observed, following a decrease that began in 2016, after an average annual increase of 5% in 2015-2011.

In 2019, there were about 33,000 employee jobs in start-up companies, an average annual increase of 7% from 2011. The average monthly salary per employee job in start-up companies in 2019 was NIS 21,000, an increase of 3% compared to 2018, and twice the average monthly salary per job An employee in the entire economy, who stands at NIS 10.5 thousand per month.

CBS data also show that 73% of start-up companies and 79% of employee jobs are concentrated in the Tel Aviv and Central Districts. 63% of employee jobs are concentrated in companies active in software-based fields, including applications for industries and businesses, medical information, Internet, mobile phone applications, security, Communication, e-commerce and advertising applications.

In 2019, about 17% of start-ups or mature companies were defined as High Growth, and about 9% of them were defined as ‘deer’. In the years 2019-2017, about 13% of the start-up companies received a grant of NIS 2.1 billion from the Innovation Authority to carry out research and development activities.

Last year, the grants amounted to NIS 564 million, a decrease of 19% compared to 2018. NIS 127 million of the total grant was given to companies engaged in the field of medical technology activities. Also, the highest percentage of companies that received a grant from the Innovation Authority, out of the total number of companies active in the same field of activity, was in the field of agricultural technology activity (16%), while the lowest percentage of companies was in the field of e-commerce and advertising (1%).

In 2019, the start-up companies and the mature companies raised about NIS 8.3 billion, an increase of 11% compared to 2018. In 2019, the mature companies employed a little over 60,000 employee jobs, which is 65% of the total employee jobs in start-up companies and mature companies combined.