Israeli-founded firms flock to Florida to expand footprint, and boost economy – study
The Sunshine State is home to 429 Israeli-founded companies, and two unicorns that employ 8,190 local workers, according to a new US-Israel Business Alliance report
Sharon Wrobel is a tech reporter for The Times of Israel
Israeli-founded companies are increasingly eyeing Florida as a hub to expand their businesses in the US market, according to a new study by the United States – Israel Business Alliance (USIBA).
“Israeli entrepreneurs are looking more and more at Florida as a viable option to grow their businesses in the US as it is also perceived as a pro-Jewish and pro-Israel state during challenging times — although New York and California are still the top two states for Israeli-founded companies,” USIBA president Aaron Kaplowitz told The Times of Israel. “The perception is that if you are Jewish or Israeli, Florida is a comfortable place to do business as you will be embraced with arms wide open, and it feels safe to bring your family right now.”
For Florida, “this means more local jobs, more state revenue and more cutting-edge innovation,” while for Israel, “more exports tend to create more jobs than imports,” Kaplowitz added.
The Sunshine State is home to 429 Israeli-founded companies that directly employ 8,190 local workers. On the list are two Israeli-founded unicorns — privately held companies valued at $1 billion or more: Adam Neumann’s real estate firm Flow and Tel Aviv-based medical device company Momentis Surgical. For comparison, there were 30 Israeli-founded companies worth at least $1 billion headquartered in New York City as of 2023.
“Since COVID, we have seen an inflow of thousands of businesspeople, entrepreneurs and venture capitalists from New York, New Jersey and Connecticut and other places who moved and relocated to Florida, and with that momentum, businesses have been moving their operations to Florida as well,” said Kaplowitz. “Israeli entrepreneurs also recognized that it wasn’t just New York and California where you could set up in the US and succeed.”
“We believe that Florida and Israel are just scratching the surface of their bilateral economic development potential,” he remarked.
According to Kaplowitz, Florida offers a very favorable zero state tax business environment combined with incentives for high-tech companies, which creates an economically appealing landscape for startups. Other factors are access to key infrastructure, including ports and rail, supportive government policies toward Israel, and an active network of Israeli and Jewish organizations.
Despite the travel disruptions for Israelis brought by the months-long war as US airlines stopped their services to Tel Aviv, there was access to flights to Florida, said Kaplowitz.
“During the war period, El Al was the only game in town and if you were an Israeli looking to do business between the US and Israel, you were only really left with the New York metropolitan area and Florida as places with near-daily flights to Miami and Fort Lauderdale,” said Kaplowitz.
Israeli-founded companies have long been active in major Florida industries, including real estate, hotels, restaurants and cruise ships. In particular Miami, more known for tourism, amusement parks, real estate and coastal lifestyle, has recently emerged as a location for tech innovation as major US corporates and asset managers, including Blackstone and Goldman Sachs, opened local offices.
Miami is also considered a top gateway for access to the South American market, offering Israeli businesses access to expansive markets, and the sunny and warm weather is also a differentiating factor, according to Kaplowitz.
The Jewish population of Miami-Dade County has grown by 7% in the past decade, adding nearly 8,000 people for a total figure of 130,100, according to a recent study. The growth is being driven by the younger generation, as the number of Jewish children grew by 13%, while the adult population grew by 5%.
The USIBA study identified space, life sciences, and defense and homeland security as three industries that have potential for Israeli-founded startups to thrive in Florida.
The report, based on an independent economic and workforce analysis, also found that Israeli-founded companies are having an impact on the economy in Florida by generating billions of dollars in revenue. Israeli-founded companies generate $7.3 billion in gross economic output, or 0.46% of Florida’s total gross state product.
JTA contributed to this report
The Times of Israel Community.