Known to many as the “Start-up Nation,” Israel has also been dubbed “Silicon Wadi”; ranking 7th amongst all countries in venture capital activity outside of the U.S. In 2015 alone, there were 326 VC investments in Israel, approximately 60% of which were in the information technology sector. In a recent article entitled Inside Silicon Wadi: Why VC in Israel is a booming business, Kevin Dowd, a writer for Pitchbook, highlighted and explained Israel’s prominent position in the VC world.

Dowd pointed to two key factors in Israel’s success in obtaining such a large portion of VC investments. First, in 1993 the Israeli government implemented the “Yozma” program, which provided tax incentives to foreign investors and matched any foreign investment in an Israeli company with government funds. Subsequently, in the early 2000s several government reforms also helped in relaxing what was a more centralized economy, making Israel much friendlier to VC investment. Second, Israel’s high-tech market is constantly producing more companies with innovative ideas and products for companies to invest in. With the highest number of tech startups per capita in the world, Israel is ripe for venture capital activity.