Shekels to Shares

Despite living over 5,600 miles away from Times Square, Israelis have one of the largest international presences on the Nasdaq Composite: currently around 100, and over 250 since the 1980s (due to M&A). This connection between New York and Tel Aviv is both expansive and deep. eToro, a multi-asset investment and social trading company focused on providing financial services, has been one of the largest IPOs on the Nasdaq in 2025 and had the highest priced 2025 IPO stock at $52.00 with a valuation of $4.3 billion and first-day surge to $5.6 billion. Startups such as Mobileye, Check Point, CyberArk, and Fiverr all debuted on the stock exchange with marketcaps valued in multibillions of dollars. This success begs the question of what is responsible for building and sustaining this successful pipeline.

“Silicon Wadi” is a nickname for the high-tech ecosystem across the Israeli coastal plain ("wadi" means "valley" in Hebrew and Arabic). The region, with Tel Aviv and nearby neighborhoods at its core, is renowned for cultivating startups especially focused in technology and software development. This success is largely attributed to a combination of military influence, government policy, and culture. Through supporting loans and venture capital, the government has monopolized on modern innovation and stimulated the nation to become a leader in software and security technologies.

From fintech to mobility to cybersecurity, Israel is at the forefront of building scalable technologies. This initiative has encouraged profitability and market leadership among software-focused startups, leading to breakthroughs overseas. With a focus on solving global problems from inception, Israeli companies often design their products for international markets, making them well-positioned for rapid expansion. This outward-looking approach—combined with technical excellence, strong investor networks, and a supportive policy environment—has transformed Israel from a regional player into a global innovation powerhouse.

One of the pillars enabling Israel’s outsized impact on the Nasdaq is the early and sustained involvement of venture capital. Israel has one of the highest venture capital investments per capita in the world, and funds such as Pitango, Aleph, Viola Ventures, and Jerusalem Venture Partners have consistently backed high-growth startups from seed to scale. This dense network of local and international VCs brings not just capital, but also access to strategic partners, mentors, and eventual public market pathways—often in the U.S.

American VCs have increasingly looked to Israel as a tech hub with strong ROI, and some firms, like Sequoia Capital and Lightspeed, have even established dedicated teams or offices in the region. The result is a robust ecosystem in which startups are built with global ambitions from day one, often eyeing Nasdaq listings as a natural evolution rather than a distant aspiration.

The strategic relationship between Tel Aviv and New York extends far beyond individual IPOs. Rooted in early programs and policies between the U.S. and Israel as well as personal relationships, it represents a model for cross-border tech acceleration that has matured into stock-market success. Israeli startups often establish early sales offices or headquarters in New York to tap into U.S. markets, while maintaining R&D centers in Israel. Nasdaq, for its part, continues to position itself as the premier destination for international tech listings, reinforcing this transatlantic bridge.

With eToro’s 2025 IPO marking a new high-water mark for Israeli listings, and continued growth in fields like AI, quantum computing, and climate tech, the pipeline shows no signs of slowing down. As long as the combination of government backing, elite talent, global VC support, and cultural drive persists, Israeli companies will likely remain a dominant force in global tech markets—and a major presence on the Nasdaq Composite.