New York’s growing tech force has led many Israeli high tech companies to open headquarters in the Big Apple.
A report by the New York-Israel Business Alliance, an outfit promoting economic prospects between New York state and Israel, showed that Israeli-founded companies make a significant impact on the state economy: $18.6 billion in revenue in 2018.
The study also found that between 2014 and 2016, Israeli start-ups secured $3.5 billion in venture capital funding. Just in 2016, Israeli owned businesses “were responsible for more than 20 percent of the total capital raised in New York State.” Over 500 Israeli companies employ nearly 25,000 New Yorkers, with another 25,000 indirectly benefitting from the consumption of local goods and services. The economic benefit to New York is estimated at $33.8 billion, Aaron Kaplowitz, founder of the Business Alliance said.
Among the Israeli-founded unicorns (privately-held companies valued at $1 billion and above) are Compass, the 2012 real estate tech startup; Taboola, a content discovery tech company founded in 2007; Lemonade, an insurance tech startup created in 2015.
Israeli entrepreneurs point to ease of transportation (direct flights and rail commuting) and reduced time zone differences as the primary motivators for choosing to set up offices in New York.
General manager of the global innovation platform SOSA NYC and founder of Israel Mapped in NY, Guy Franklin, says business listings have grown from 60 to over 350 startups in six years, with new businesses being added each month. He believes industries like fintech, insur-tech, cybersecurity, consumer goods, and fashion will continue to build their offices in the Big Apple.