Only 4% of Israeli start-ups ultimately succeed, according to a study conducted by IVC Research Center and REVERSEXIT.
The study, which examined over 10,000 Israeli startups founded between 1999 and 2014, found that 46% had closed and were no longer active. About 14% of those had been acquired, but only half of them (303) were acquired at a profit, and thus considered successful.
cnxps.cmd.push(function () { cnxps({ playerId: '36af7c51-0caf-4741-9824-2c941fc6c17b' }).render('4c4d856e0e6f4e3d808bbc1715e132f6'); });
console.log("catid body is "+catID);if(catID==120){document.getElementsByClassName("divConnatix")[0].style.display ="none";var script = document.createElement('script'); script.src = 'https://player.anyclip.com/anyclip-widget/lre-widget/prod/v1/src/lre.js'; script.setAttribute('pubname','jpostcom'); script.setAttribute('widgetname','0011r00001lcD1i_12258'); document.getElementsByClassName('divAnyClip')[0].appendChild(script);}else if(catID!=69 && catID!=2){ document.getElementsByClassName("divConnatix")[0].style.display ="none"; var script = document.createElement('script'); script.src = 'https://static.vidazoo.com/basev/vwpt.js'; script.setAttribute('data-widget-id','60fd6becf6393400049e6535'); document.getElementsByClassName('divVidazoo')[0].appendChild(script); }Among the 5,400 companies that remain active, just 2.5% are considered “successful” by the study’s authors, who put the bar rather high in defining success: annual revenues of $100 million or employing over 100 people. The number rose to six percent if the threshold was lowered to $50 m. and companies that run on sales.
"According to most entrepreneurs, success is the realization of a business idea, a dream or technological innovation and its concrete implementation into a real business,” explained Koby Simana, CEO of IVC Research Center. “Among younger entrepreneurs, we also found the wish to 'hit it big time' that is, to build a startup and sell it for a significant profit, although this view did not represent the majority.”