It’s no secret that Israel has become a place where tech startups rival Silicon Valley. Israel is known as “Startup Nation,” and is home to some of the most innovative and successful tech firms in the world.
But as big as the tech scene is in places like Tel Aviv, Jerusalem and Eilat, these companies are eager to make it even bigger in the United States. The market potential in Israel is small, and the talent pool is even smaller – for a startup to grow, it must look beyond its own borders and enter new markets. And there’s no market with more potential than the U.S. With its many venture capital firms eager to invest in innovative tech companies, and numerous enterprises that could serve as target customers, the U.S. remains the most sought-after place for Israeli companies to set up shop.
It used to be a no-brainer that a startup from Israel would establish operations in the Silicon Valley area or in New York City (aka Silicon Alley), but in recent years, more of these startups are taking a closer look at Boston. There are three key reasons why Boston is becoming a more attractive option:
- Cost. Compared to San Francisco and New York City, the cost of living, including leasing office space, employee salaries and the tax base, are far more affordable for a startup.
- Talent pool. The university system in Boston – Harvard, MIT, Northeastern, Brandeis, and Berklee College of Music, just to name a few – brings many of the world’s best young minds to come and learn. A large majority of them stay in Boston after they graduate – and are eager to work at tech startups.
- The culture. Boston is known as a city of straight shooters. We’re not as nasty as New York City, but we say what we mean. It’s a directness that aligns well with the Israeli culture. There is also a tight-knit community of Israeli expats who are thriving here. Additionally, the talent pool of entrepreneurs matches well with Israel’s innovation culture.
It’s clear that Boston is becoming an east-coast hub for growing Israeli tech businesses. Based on what we’re seeing now, this will only continue to grow – not just in the city itself but also in the wider Massachusetts area. The favorable position Boston currently finds itself in, is a direct result of the talent pool which exists within the city… and this train is going to keep rolling!
Next up: The growing relationship between London and Israel …. And – hear more from our Israeli tech clients about why getting your message right is crucial for global expansion.