Is it possible that Israel's powerful startup machine is starting to lose steam? According to new data from the Central Bureau of Statistics, 2019 saw a 5% drop in the number of startup companies operating in Israel compared to 2018.
The National Council for Civilian Research and Development in the Science and Technology Ministry provides support to the CBS in collating data about the Israeli startup sphere, including which companies mature past the startup phase.
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The CBS numbers show that from 2011 to 2019, the number of startups in Israel grew by an average 5% annually, reaching 4,658 in 2019.
From 2011-2019, 6,326 startup companies were launched in Israel. Of these, 2,922 (46%) either closed down or suspended operations by 2019.
In 2019, some 33,000 workers were employed by Israeli startups in salaried positions. The number of salaried startup positions rose an average of 7% from 2011-2019.
The average 2019 salary for startup jobs in Israel stood at 21,100 shekels per month ($78,768/year), a 3% increase compared to 2018.
In 2019, 2,047 startups were operating in the Tel Aviv area. 236 opened over the course of the year and 229 shut down. In total, nearly three-quarters (73%) of startup companies in Israel are based in central Israel, and 79% of startup positions are based in central Israel.
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