Top Israeli Tech Trends Over the Last Decade

Israel has emerged as a global leader in the tech industry over the last decade, showcasing unique trends that have both mirrored and diverged from those seen in places like Silicon Valley.

B2C Technology Leads the Way

One of the most notable changes in the Israeli tech industry is the shift towards B2C technology. Prior to 2009, Israeli B2C tech products were few and far between, with notable exceptions like ICQ, the USB flash drive, and iMesh. These products were soon acquired by foreign companies, and Israel’s tech scene remained heavily focused on B2B solutions. However, in the last decade, several major B2C software projects have gained worldwide recognition and popularity.

Wix: A web-publishing software that allows users to create websites without coding. Moovit: An app that tracks real-time public transport data and schedules. Gett: A ride-hailing service app. Fiverr: A platform for online freelancing. OrCam: A technology that helps visually impaired individuals navigate their surroundings. Lemonade: A digital insurance company that offers online property and renter's insurance. Houzz: A home design and remodeling resource. Viber: An instant messaging app with video calling capabilities.

While B2B technology still dominates in Israel, the increasing focus on creating consumer products is evident. This shift is due to a growing number of engineers with the skills and experience to develop compelling consumer applications.

Successful Exit and IPO Trends

A significant trend in the Israeli tech industry over the last decade is the increasing number of successful exits and Initial Public Offerings (IPOs). In the past, Israeli startups often took a conservative approach to exits, cashing out early or staying private. However, as more entrepreneurs accumulate wealth from previous exits, they are able to focus on long-term strategies. This has led to a steady increase in the number of unicorns—startups valued at over $1 billion.

According to data, Israel saw a doubling of its unicorns in 2019 alone. Notable examples include:

Fiverr: An online freelance marketplace that went public in 2020, marking a significant IPO trend. Waze: Acquired by Google in 2013 for $1.5 billion and later sold to Uber for $1 billion in 2017. Playtika: Acquired by IAC in 2021 for $4.4 billion.

The trend of successful exits and IPOs suggests that Israel might soon see its own multinational tech company valued at $50 billion or more within the next decade. The only other Israeli company of this magnitude is Teva, which is a pharmaceutical company.

Securing the Future: Cybersecurity Innovation

Another key trend in Israeli tech is the rise of cybersecurity innovation. While the US continues to produce a significant number of cybersecurity products, Israel has established itself as a leading player in this industry. This success can be attributed to a combination of government support, a talent pool of highly skilled engineers, and a culture of technological innovation.

Significant Israeli-founded cybersecurity companies include:

Palo Alto Networks: A network security company founded by Israeli entrepreneurs.

Israel has consistently shown that it can compete with the best in the world in terms of cybersecurity solutions. Companies like Check Point Software Technologies, Civeo, and Deep Instinct have also made significant impacts in the cybersecurity landscape.

Conclusion

Israel's tech industry has undergone a remarkable transformation over the last decade, marked by a move towards B2C products, increasing exit and IPO trends, and a strong focus on cybersecurity innovation. As the industry continues to grow and evolve, it will be fascinating to see how these trends shape the future of tech in Israel and around the world.