Tel Aviv’s startup ecosystem is second only to Silicon Valley’s because of the city’s software engineer population and access to venture capital, researcher Startup Genome said.
The Israeli city beat out places commonly thought of as startup hotbeds, such as Los Angeles (No. 3), Seattle (No. 4) and New York (No. 5) in a global study published this week.
Cities were evaluated based on eight criteria, including the performance of companies located there and access to talent. In Tel Aviv, 40 percent of entrepreneurs have master’s and doctoral degrees compared to 42 percent in Silicon Valley, according to the study. Google Inc. has offices in the Israeli city, and Facebook Inc. also has a presence there after acquiring facial-recognition developer Face.com in June.
Still, only 13 percent of company founders in Tel Aviv have lived in Northern California at one time giving them less exposure to the startup culture there, according to the report. In London or Paris, the rate is one out of every four. Israeli entrepreneurs also tend to have a lower appetite for risk than their counterparts in other top regions.
Besides Tel Aviv and London at No. 7, North American cities dominated the top 10 in the study, which was funded by Spain’s Telefonica SA.