Report: Record 35 Israeli-Founded Unicorns Now Headquarter in California
The companies have combined to create 31,985 jobs worldwide
MIAMI, April 25, 2023 /PRNewswire/ -- California now serves as the global or U.S. headquarters for 35 Israeli-founded unicorns – privately held companies valued at $1 billion or more – according to the United States – Israel Business Alliance. Anchored by a dynamic cluster in Silicon Valley, the 35 Israeli-founded unicorns mark the most ever in a single state at one time.
"Despite a dizzying multi-year stretch that has seen disruptions to international travel, breaks in the global supply chain, and a shaky economy," USIBA president Aaron Kaplowitz said, "California remains a prime destination for Israeli entrepreneurs to build powerhouse tech companies."
The 35 Israeli-founded unicorn companies have combined to create some 31,985 direct jobs around the world, an average of 914 jobs per company. The five largest job creators are Armis (5,000), Navan (3,000), SpotOn (2,526), Deel (2,464), and Gusto (2,424).
"The mystique around the 'Start-Up Nation' is certainly an effective marketing tool," Kaplowitz said. "Still, the Israeli brand remains strong because these companies are creating thousands of local jobs and enriching communities."
The total valuation for all 35 unicorns amounts to $115 billion. That puts the average company value at $3.29 billion. The three Israeli-founded companies with the highest valuations in the U.S. all have their global or U.S. headquarters in California: Rapyd ($15 billion), Deel ($12 billion), and Gusto ($10 billion). Each of these companies also has a presence in multiple U.S. markets. Although Rapyd's global headquarters is in London, it now maintains U.S. offices in San Francisco, San Jose, Denver, and Miami. Deel's global headquarters is based in San Francisco and the HR platform provider has a New York office. Gusto, also based in San Francisco, has offices in Denver, New York, and Scottsdale.
The newest unicorn members are Monte Carlo, a data observability platform that completed a raise based on a $1.6 billion value in May; StoreDot, an advanced battery maker that also surpassed the "three-comma" valuation milestone last May; and Visby Medical, a PCR-based health diagnostics company that closed a funding round at a $1.1 billion valuation in June. Soon after completing a $116 million capital raise at a $1.4 billion valuation last February, gaming developer Tripledot Studios acquired California-based Live Play Mobile to secure its Golden State credentials.
With 14 Israeli-founded unicorn headquarters, San Francisco has the most of any city in California. Nationally, San Francisco trails only New York City, which is currently home to 30 Israeli-founded unicorns. Palo Alto's five Israeli-founded unicorns are the second-most in California, followed by San Jose, with four.
Israeli-Founded Unicorns Based in California
Company | Valuation | Jobs Created | City | Solution |
AppsFlyer | $2,000,000,000 | 1,640 | San Francisco | Mobile marketing analytics |
Armis | $3,500,000,000 | 5,000 | San Francisco | Agentless device security |
At-Bay | $1,350,000,000 | 287 | San Francisco | Cyber insurance |
BigPanda | $1,200,000,000 | 345 | Redwood City | IT software solution |
Cato Networks | $2,500,000,000 | 696 | San Jose | SaaS platform |
Cloudinary | $2,000,000,000 | 484 | Santa Clara | Media experience platform |
Deel | $12,000,000,000 | 2,464 | San Francisco | Payroll and compliance |
Dremio | $2,000,000,000 | 371 | Santa Clara | Big data curation |
Exabeam | $2,400,000,000 | 724 | Foster City | Security automation |
Firebolt | $1,400,000,000 | 154 | San Francisco | Data warehousing |
Fundbox | $1,100,000,000 | 275 | San Francisco | Cash flow optimization |
Gong | $7,250,000,000 | 1,458 | Palo Alto | Revenue intelligence |
Gusto | $10,000,000,000 | 2,424 | San Francisco | Payroll, benefits, and HR |
Hailo | $1,100,000,000 | 217 | San Jose | AI chipmaker |
HoneyBook | $2,500,000,000 | 200 | San Francisco | Workflow platform |
Houzz | $4,000,000,000 | 1,664 | Palo Alto | Home design and decorating |
Monte Carlo | $1,600,000,000 | 199 | San Francisco | Data monitoring |
Navan | $9,200,000,000 | 3,000 | Palo Alto | Corporate travel management |
NEXT Insurance | $4,000,000,000 | 800 | Palo Alto | Insurance for small businesses |
Noname Security | $1,000,000,000 | 386 | San Jose | API security |
Placer.ai | $1,000,000,000 | 598 | Los Altos | Foot traffic analytics |
RapidAPI | $1,000,000,000 | 200 | San Francisco | API marketplace |
Rapyd | $15,000,000,000 | 850 | San Francisco | Payments platform |
Redis Labs | $2,000,000,000 | 891 | Mountain View | Database management |
Salt Security | $1,500,000,000 | 204 | Palo Alto | API security |
SpotOn | $3,600,000,000 | 2,526 | San Francisco | Restaurant & retail payment |
StoreDot | $1,500,000,000 | 128 | Irvine | Advanced batteries |
Sunbit | $1,100,000,000 | 480 | Los Angeles | Buy now, pay later |
Tipalti | $8,300,000,000 | 1,024 | Foster City | Accounts payable |
Trax | $2,250,000,000 | 824 | San Francisco | Retail analytics |
Tripledot Studios | $1,400,000,000 | 400 | Los Angeles | Mobile games studio |
Veev | $1,000,000,000 | 255 | Hayward | Home-building tech |
Visby Medical | $1,100,000,000 | 249 | San Jose | PCR-based diagnostics |
Viz.ai | $1,200,000,000 | 403 | San Francisco | AI disease detection & care |
Wiliot | $1,000,000,000 | 165 | San Diego | IoT Platform |
In contrast to the six Israeli-founded California unicorns that went public between April 27, 2021 and April 27, 2022 (Hippo, Innoviz, ironSource, Otonomo, SentinelOne, and WalkeMe), no Israeli-founded California unicorn IPO'ed over the past year. California did, however, lose one unicorn. Wiz, a cloud security leader, moved its U.S. headquarters from Palo Alto to New York.
California's Israeli-founded unicorn total represents a 10 percent increase from the state's previous national record of 32 set in 2022.
The companies' valuations and direct jobs created figures are estimates based on data resources, publicly available information, and conversations with executives and industry analysts. The estimates do not necessarily reflect the most current values.
About the United States – Israel Business Alliance The mission of the United States – Israel Business Alliance is to strengthen the economic relationship between individual states and Israel. Learn more about the impact Israeli-founded companies are having on local communities at www.usisrael.co.
SOURCE United States - Israel Business Alliance
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