Boasting the highest number of tech firms outside of California’s Silicon Valley, Tel Aviv is an epicentre of Fintech startups and a global leader in Blockchain technology. Such is the concentration of tech companies that the city has become popularly known as ‘Silicon Wadi’ – ‘valley’ in Hebrew.
But why is Israel, and Tel Aviv specifically, experiencing such an impressive tech boom? A key factor is the supply of young talent from the city’s universities, which rank highly in lists of the world’s leading research institutes. Israeli graduates also appear to have a strong business mentality, with twice as many becoming entrepreneurs in comparison to their US counterparts.
Tel Aviv’s tech startups also reap the benefits of the world’s highest rate of R&D investment per capita, measured in 2015 at $423. This compared with $186 in the United states and a paltry $16 per head in Europe.
Government support is also crucial. This includes a technology incubator programme to assist startups and encourage innovation. Israel’s investment laws also allow foreign companies to take advantage of reduced tax rates and investment grants, while the country invest more than 4% of its GDP in research and development.
The excellence of Israeli entrepreneurship in the Fintech sector is exemplified by the likes of payment platform Zooz, decentralised liquidity network Bancor, and Blockchain prediction market platform Stox – just a small selection from a plethora of Fintech startups across the country.
One of the catalysts (...) To read the rest of the article, please visit: https://www.disruptionbanking.com/2018/04/israels-silicon-wadi-a-fintech-startup-story/.