Israeli startups open NYC ‘kibbutz,’ as tech scene grows despite Mamdani

NEW YORK — Israeli tech leaders in New York City announced on Monday the formation of a new hub, as the country’s tech scene continues to grow, despite growing political hostility to Israel in the city from Mayor Zohran Mamdani and other elected officials.

The new center, called “Hakibbutz NYC,” is located in Manhattan’s Chelsea neighborhood and will serve as the first “permanent home” for Israeli startups, organizers said in a statement.

The facility will host events including investor gatherings, roundtable discussions, professional networking events and meetings between Israeli tech staff and US corporations, the statement said.

The project is a collaboration between Hakibbutz, an Israeli workspace hub, and Israeli Mapped in NY, a platform that tracks and connects Israeli startups in the city.

Guy Franklin, the head of Israeli Mapped in NY, said the space on 26th Street will span 18,000 square feet, with plans to expand further.

Private sources are funding the project and there is no government involvement from Israel, the US or New York, Franklin said.

“Our goal is that no Israeli company arriving in New York should have to start from scratch. Instead, they should be able to immediately connect with a network of founders, investors, customers, and business partners,” he said.

One of the first companies to operate from the space is the Israeli cybersecurity firm Zafran Security, organizers said.

New York is a major destination for Israeli startups. The domestic Israeli market is small, and companies that wish to expand must look abroad for customers, business partners, investors and employees.

The US is the largest accessible market for many products, and New York is closer to Israel in distance and time zone than US tech hubs in California. The city is also home to large Jewish and Israeli communities.

Florida is another growing destination for Israeli companies, according to a report last year by the United States-Israel Business Alliance.

Israeli Mapped in NY counts around 470 Israeli technology companies in New York.

Franklin said the Israeli business presence has continued to expand despite the election of Mamdani, an anti-Zionist and a supporter of the anti-Israel Boycott, Divestment and Sanctions (BDS) movement.

Anti-Zionist lawmakers have won Democratic party primaries for New York’s Congressional delegation and the city government in recent months.

Mamdani revoked an executive order that barred BDS on his first day in office at the start of the year, and earlier this year the city’s Economic Development Corporation removed a webpage that had promoted Israeli businesses in the city.

But City Hall has not attempted to enact any BDS policies and New York law bars discrimination based on national origin in public contracts.

Franklin told The Times of Israel that around 50 Israeli startups have set up operations in the city in the past 12 months.

“More and more companies are establishing a permanent presence in New York, hiring local teams, and managing their US growth from here,” Franklin said.

A report last year by the United States-Israel Business Alliance counted nearly 600 Israeli-founded companies in New York City, including firms not involved in technology, like restaurants.

Those companies have created more than 27,000 jobs and generated billions in revenue in the city. There are 20 Israeli-founded “unicorns,” or companies worth more than $1 billion, based in the city, the report said.