"Start-up Nation": An incomplete history and profile of Israel's rise in Cybersecurity

The startup ecosystem frequently highlights three primary hubs leading the forefront of innovation: 1) Silicon Valley, 2) New York, and 3) Tel Aviv. Each hub has evolved around distinct themes. Silicon Valley, initially rooted in silicon and semiconductors, progressed to pioneer databases, networking, the internet, cloud computing, and mobile. New York has become a conduit for financial services and connections to Fortune 2000s (historically the largest IT purchasers) and the broader global market, particularly Europe and Asia. This positioning has made NYC a natural hub for fintech and commerce (e.g., Bloomberg and Etsy), along with some infrastructure companies (e.g., MongoDB). NYC serves as a gateway for startups from Europe and Israel, like Datadog and Snyk who setup headquarters in the US at growth stage.

Perhaps most unexpectedly of the Big 3 startup ecosystems, Tel Aviv has emerged as a key player. Tel Aviv’s rise is particularly notable in cybersecurity (alongside semiconductor innovations from companies such as Mellanox, now part of Nvidia), earning it recognition as the unofficial global capital of cybersecurity innovation despite Israel's relatively small population of around 10 million. The factors behind Tel Aviv's ascendancy in cybersecurity, though not as frequently explored, stem from a mix of government support, research prowess, technological breakthroughs, and a distinct entrepreneurial culture. We will explore these elements further below.

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