Israeli tech continues to ‘defy the odds’ says Startup Nation Central chief
Avi Hasson believes the Israeli economy can persevere through a prolonged conflict with Iran
The chief executive of Startup Nation Central Avi Hasson has told Jewish News that Israel’s economy can withstand a prolonged conflict with Iran.
Photo: Miri Davidovitz
Hasson said: “This past weekend, Israel launched a preemptive strike on Iran to disrupt the acceleration of its nuclear program, a threat that poses an existential risk to Israel and its people. A prolonged conflict with Iran carries significant economic ramifications not only for Israel, but for the broader region as well. Beyond the immediate impact on defence spending and physical infrastructure, the national budget will face immense strain, and the societal toll could be far-reaching. However, the Israeli economy is resilient and will persevere.”
Hasson, the former chief scientist of the Ministry of Economy of the State of Israel and chairman of the Israel Innovation Authority, added that “for over two years, Israeli tech has operated under extraordinary conditions, including political unrest, a protracted war in Gaza, ongoing tensions with Hezbollah on the northern border with Lebanon, Houthi attacks from Yemen, and now a full-scale conflict with Iran. During this time, a significant portion of the tech workforce has been called up for reserve duty. In parallel, air travel has been repeatedly halted, now again, affecting business continuity and connection to the global markets. The long-term economic implications of this evolving conflict remain uncertain, but its short-term pressures are undeniable. And yet, amid this instability, the Israeli tech sector continues to outperform expectations and defy gravity.”
In 2024 alone, Israeli tech companies raised over $12 billion in private funding, a 31% increase from the previous year, with 15 mega-rounds accounting for $4 billion of that total. Foreign investors led the charge, reaffirming global confidence in Israel’s innovation engine. M&A activity hit $15.8 billion (not including the landmark $32 billion Google-Wiz deal). Since October 2023, Israeli tech has seen $20 billion in private funding and $50 billion in M&A activity. The Israeli tech ecosystem led Israel’s economic growth. High-tech GDP grew by 2.2%, even as the broader economy contracted by 1.5%.
Acquisitions by multinationals with R&D and innovation operations in Israel reached new heights, further emphasising the country’s significance as a global tech and innovation hub. NVIDIA, for example, made several significant acquisitions and now employs 13% of its global workforce in Israel, with its Israeli operations playing a major role in driving the company’s earnings and leading global AI infrastructure development. Apple is expanding its presence in Jerusalem to tap into top Israeli tech talent.
“These are not isolated statistics,” said Hasson. “They reflect the fundamental nature of Israeli innovation, born in adversity and driven by necessity. The same ingenuity and operational boldness that shaped a precision strike on Iranian territory pulses through our tech ecosystem. This is not a catchphrase. It is who we are.”
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