Israel Leads the World in Serial Entrepreneurship, New Report Finds
A new study reveals Israel ranks second globally, behind only the United States, in the proportion of startups founded by serial entrepreneurs, highlighting a key driver of the nation’s thriving innovation economy.
According to research by Battery Ventures, in collaboration with HSBC and Dealigence, nearly 10% of all new startups globally with serial entrepreneurs at the helm are based in Israel. The country also boasts the highest ratio of startups led by experienced founders – one in every 22 new companies – significantly outpacing the U.S. (one in 38), France, and Germany. Over the past five years, Israeli companies founded by repeat founders have generated $75 billion in exits exceeding $1 billion, including notable successes like Wiz, Next Insurance, CyberArk, and Melio.
Venture capital funds demonstrably favor startups with seasoned leadership, with early-stage companies led by serial entrepreneurs raising four to five times more capital than those founded by first-timers – typically $12 million versus $3 million. Valuations at fundraising are also two to three times higher. Barak Schoster, a partner at Battery Ventures and initiator of the study, explained that experienced entrepreneurs maintain fundraising stability even during economic uncertainty, contributing to the resilience of Israel’s high-tech sector, particularly during recent periods of conflict. “Entrepreneurs often receive offers that are hard to refuse early on and sell too soon,” Schoster said. “A company like Dome9, for example, was sold to Check Point in 2018 for $175 million, and that was too early.” This trend suggests that experienced founders are more likely to pursue larger, long-term returns for investors. You can learn more about venture capital trends at PitchBook.
The report attributes Israel’s high concentration of serial entrepreneurs to a cultural acceptance of failure and a willingness to share knowledge and networks. Furthermore, the country’s leading adoption of cloud technologies, particularly artificial intelligence – Israelis use the Claude AI engine seven times more than expected based on population size, according to Anthropic – is accelerating the pace of new venture creation. This ecosystem of rapid iteration and reuse of talent is a key component of Israel’s economic strength, and a model for other nations hoping to foster innovation. Israel’s success in cybersecurity is a prime example of this phenomenon; read more about CyberArk and its role in the industry.
Officials indicated that continued investment in education and research will be crucial to sustaining Israel’s position as a global hub for entrepreneurship.
