Israel’s Tech Ecosystem: A Founding Engineer’s Perspective
The Israeli technology sector is a global leader, known for high standards and rapid innovation. This sector significantly contributes to the country’s economy, accounting for a substantial portion of employment, exports, and income tax revenue. Despite global economic challenges, Israeli tech companies have attracted considerable investment, trailing only Silicon Valley and New York.
Evgenii Lazarev, a founding engineer at the Israeli startup Zesty, shared his perspective on Israel’s dynamic startup environment. He discussed market dynamics and how the ecosystem cultivates specialists, retains talent, and fosters technological innovation. Beyond his engineering role, Lazarev actively promotes startup culture in industry media and professional circles.
The Role of Accelerators
Accelerators are vital to Israel’s startup ecosystem, offering crucial resources for emerging companies. Lazarev emphasizes that startup growth depends on a strong technical team and a supportive ecosystem. He explains that startups need investments, accelerators, mentors, and other support to reach their potential. He reflects on his transformative experience immigrating to Israel.
“All of this became clear to me firsthand after immigrating to Israel. The ecosystem here gave me a powerful boost in my professional development, and the AWS Accelerator catalyzed my growth. I delved into cloud service pricing, cost analysis, and developed a user-friendly dashboard that allowed clients to see their actual expenses and identify optimization opportunities. The goal was not just to write code, but to create a product that helps businesses save money. This experience directly influenced how we built Zesty — a startup specializing in AWS cost optimization,” says Evgenii Lazarev.
Numerous opportunities exist for early-stage startups and developers seeking to scale their ideas. Techstars Tel Aviv, part of a large international accelerator network, supports global expansion. MassChallenge Israel offers international mentorship, networking, and investment opportunities. Accelerators such as 8200 EISP, founded by alumni of Israel’s elite Unit 8200, support deep tech startups.
Competition for Technical Talent
One of the defining characteristics of Israeli startups is the intense competition for developers. Companies often struggle to find the right candidates, especially in the early stages. However, the battle for talent is particularly tough locally. Simultaneously, international companies offer high salaries, intensifying competition. With high demand, specialists can choose the best offers, making team building a challenge.
“I was the first engineer at the startup, and it took us half a year to find our second developer — that’s how tough the market is. When we studied candidate requirements in different countries, I noticed that Israel strongly emphasizes experienced engineers. For instance, some European countries look for juniors more often, whereas companies generally seek senior developers here. Overall, the requirements are more in-depth, especially regarding architectural decisions and production infrastructure,” says Evgenii.
Another factor is the high concentration of tech companies. Israel hosts R&D centers for major international firms, creating additional demand for talent. Tel Aviv consistently ranks among the top startup ecosystems globally, with one of the highest per-capita concentrations of tech entrepreneurs. This creates a highly competitive market. The caliber of local specialists is high, thanks to the country’s talent development system. According to Startup Nation Central, over 30% of Israeli startups were founded by individuals who served in the military, including Unit 8200.
Expectations for Developers
Israeli startups seek developers with expertise and a strong understanding of infrastructure, architecture, and product logic. Working at a startup demands a broader perspective than in large corporations. Developers must understand how the whole system is constructed.
“You’re not just writing code; you’re building a system that must be stable, efficient, and scalable. To make the right technical decisions, you need to understand how the product works as a whole,” explains Evgenii Lazarev. This requires constant attention to infrastructure, architectural solutions, and resource optimization.
Lazarev recalls tackling a specific challenge: “To build our product practically from scratch, I had to dive deep into AWS billing and figure out how to optimize companies’ expenses.” To solve it, Lazarev developed a real-time expense-tracking system. This project required extensive work with Big Data, databases, and computing power optimization. The product also had to be deployed quickly and adapted to various business scenarios. The Israeli tech environment sets a high bar for development. Engineers use technical solutions to solve real business problems.
The Israeli startup ecosystem provides everything needed for growth, including investments, accelerators, infrastructure, and a strong tech community. However, the intense competition for talent and the need for speed are significant challenges.
“I saw it from the inside. In a startup, you’re not just writing code — you’re part of building a product from scratch, understanding how the market works, and learning to operate in an environment where everything changes weekly,” says Evgenii Lazarev. This experience demonstrates why Israel has become a powerful tech ecosystem, with companies growing rapidly.
An example is Zesty, which evolved into an international player, adapting to global requirements and scaling its technology. Israeli startups aim for global markets from day one, building products with international competition in mind.
“It’s not just an ecosystem for creating startups — it’s an ecosystem that teaches you how to grow fast. And if you’re ready for that pace, it offers incredible opportunities,” emphasizes Lazarev.
