Nearly Half of Israeli Startups Incorporate Abroad
A 2025 survey by the Israel Advanced Technology Industries Association (IATI) found that 45% of roughly 460 Israeli tech startups incorporated abroad, mainly in the United States, compared to 20% in 2022.
The shift, sparked in 2023 by political instability tied to proposed judicial reforms, persists despite the shelving of those reforms after the October 7 Hamas attacks and subsequent conflict in Gaza.
Industry leaders, including Dan Shamgar of Meitar, warned that continued relocation could weaken Israel’s high-tech ecosystem. They called on policymakers to create incentives that keep economic activity local.
Tech remains a cornerstone of Israel’s economy, generating about 20% of GDP, 15% of jobs, and over half of exports. At the IATI conference, executives also pressed for more domestic investment and a revival of the health tech sector, which has seen a downturn. The government has not yet responded to the findings.
Read more in Reuters.
