Israeli Startups Are Moving to the U.S.: Experts Warn of Economic Threat

Jerusalem. The number of new Israeli startups registering outside of the country has significantly increased in 2025. According to a survey by the Israel Advanced Technology Industries (IATI), *45%* of these companies were registered abroad, primarily in the U.S. In comparison, this figure was only around *20%* in 2022.

Experts believe this trend has accelerated since the Hamas attack on October 7, 2023, and the subsequent war in Gaza. Companies are increasingly choosing to incorporate in the United States, especially in the state of Delaware.

Dan Shamgar, Chairman of the IATI’s legal and accounting committee, stated that relocating registration abroad “gradually moves economic activity out of Israel and undermines the brand of Israeli high-tech.”

He emphasized that U.S. authorities are creating incentives for companies to register and do business in the country, while “in Israel, policymakers remain indifferent to this trend.”

Israeli high-tech is a key driver of the country’s economy today, accounting for about 20% of GDP and approximately 9% of state budget revenues. More than a third of all income tax payments come from workers in this sector.