Moving up two spots from 2022, Tel Aviv ranked #5 in the 2023 Global Startup Ecosystem Report (GSER) released by Startup Genome and the Global Entrepreneurship Network at The Next Web Conference in Amsterdam on June 15.

Informed by data on 3.5 million startups across 290-plus global ecosystems, GSER 2023 ranks the top 30 as well as 10 runner-up global ecosystems and includes a top 100 ranking of emerging ecosystems.

The report also highlights startup communities from a regional perspective, separately ranking ecosystems in Africa, Asia, Europe, Latin America, MENA, North America, and Oceania.

Overall, GSER shows that Tel Aviv created nearly $235 billion in ecosystem value from July 2020 through December 2022, calculated as the value of exits and startup valuations. This represents 100 percent compound annual growth compared with the previous two-year period.

In the MENA region specifically, Tel Aviv ranks first in several parameters: funding, performance, talent and experience, knowledge and “bang for the buck,” which refers to the amount of runway tech that startups acquire, on average, from a VC round.

The report showed that the densest areas of talent, support resources and startup activity in Tel Aviv are in life sciences, cybersecurity, AI and big data and analytics.

“This is an extraordinary achievement for Tel Aviv-Yafo,” said Mayor Ron Huldai. “The presence of the city among the top five in the ranking is conclusive proof that the freedom of creativity and thought, along with the values of diversity and liberalism, form the foundation for a thriving and successful tech industry. Tel Aviv-Yafo will continue upholding these values, offering tools, assistance, and support to the startup and high-tech companies operating in the city.”