Tel Aviv has again secured its place among the world’s most powerful startup cities, ranking fourth globally in Startup Genome’s latest Global Startup Ecosystem Report with an ecosystem value of roughly $250 billion.

The Israeli city now sits behind only Silicon Valley, New York and London, putting it ahead of many larger global centers and reinforcing Israel’s position as a tech power far beyond its physical size. The report was unveiled at the VivaTech conference in Paris and draws on one of the world’s largest startup databases, covering millions of companies and hundreds of innovation ecosystems.

The ranking is not just a public-relations win for Tel Aviv. It reflects the depth of Israel’s startup economy at a time when the country is operating under enormous wartime, diplomatic and economic pressure. Startup Genome highlighted Tel Aviv’s strength in artificial intelligence, cybersecurity, life sciences and deep tech, sectors where Israel has built a global reputation through elite research, military-linked innovation, multinational investment and a dense network of founders, engineers and venture capital.

Recent deals show why global investors are still watching Israel closely. Apple’s reported near-$2 billion acquisition of Tel Aviv-based Q.ai put Israeli AI back in the center of the global race for next-generation devices. Israeli cyber remains one of the country’s strongest engines, with 130 cybersecurity startups raising $4.4 billion, while the government has moved to strengthen AI infrastructure with a national supercomputer initiative worth hundreds of millions of dollars.

According to the Israel Innovation Authority, Israeli high-tech output grew 8.2% in real terms, reached NIS 352 billion, and drove roughly half of Israel’s total economic growth. High-tech exports hit about $85 billion, accounting for 58% of total Israeli exports, while exits reached about $84 billion and fundraising approached $15 billion.

The Innovation Authority says Israel is seeing the first decline in more than a decade in the number of R&D employees inside the country, while more Israeli companies are expanding management, sales and development activity abroad. The share of employees at private Israeli tech companies based in Israel has fallen from 69% in 2019 to 62%, raising long-term concerns about whether enough of the value created by Israeli innovation will remain inside the country.