[fn Square] Tel Aviv’s Night Streets and the Second Chance for the Defeated

Cafés and restaurants in downtown Tel Aviv were bustling with young people who seemed to forget the night. On major streets like Rothschild Boulevard, traffic was restricted at night, transforming the roads into open-air cafés. The beaches along the Mediterranean Sea were also crowded with people. Young soldiers carrying rifles could be seen everywhere, enjoying the Mediterranean night breeze with friends or loved ones.
Places once targeted by missiles and rockets have now regained peace and vitality. Tel Aviv still maintains its reputation as a startup investment hub, standing alongside Silicon Valley, New York, and London. The city felt even younger and more energetic than its average citizen age of 35. During my stay in Tel Aviv last November, just over a month had passed since Israel concluded the first phase of its ceasefire with Hamas, the Palestinian militant group, after two years of conflict.
Economic indicators and statistics show that, after passing through the tunnel of war, the economy is once again on an upward trajectory. In 2024, startup investments reached $10.6 billion, and in the first half of 2025, investments have already surpassed $7.2 billion. Even during the war, global corporations continued to court local ventures, resulting in record-breaking mergers and acquisitions. Alphabet Inc., Google’s parent company, agreed to acquire the cloud security startup Wiz for $32 billion.
Aaron Turkaspa of Startup Nation Central said, "Even during the war, the startup process continued." Immediately after the outbreak of war, the Israel Innovation Authority released $200 million in grants to support startups. The government played a crucial role as a breakwater, maintaining the ecosystem for early-stage companies. In the 1980s and 1990s, the government also planted the seeds for the startup ecosystem by acting as a key venture capital provider. Israel’s global leadership in advanced technologies such as desalination, nuclear safety systems, and cybersecurity was made possible by the government’s foresight and early investments. Be'er Sheva, a city in the Negev Desert, is a prime example. Its 200,000-square-meter Cyber Park houses over 500 domestic and international companies and startups, including Oracle Corporation and IBM. The Israel National Cyber Directorate and Unit 8200, the country’s elite cyber intelligence unit, also flourished here. As the government planned and led the way, private companies and foreign capital followed.
Haifa, the gateway city to the Mediterranean Sea, showcases the future of startups racing toward new goals. The Rambam Health Care Campus, renowned for its world-class medical exhibition system, and the medical industry sites, including next-generation MedTech, are all located here. Advanced diagnostic and treatment systems such as endoscopic ultrasound biopsy devices, consciousness response measurement and rehabilitation systems for vegetative state patients, and 3D bioprinted corneal transplants were developed in this region. Since the 1990s, Israel has dominated the global cybersecurity industry and is now advancing biotechnology by integrating it with information and communication technology (ICT) and artificial intelligence (AI). The belief that "medicine must also be a driver of innovative growth" is shared by the campus’s 6,500 employees.
Haifa is also home to the Technion – Israel Institute of Technology (Technion) and the Matam Science-Based Industrial Park, which serve as hubs for various ventures and R&D centers of global tech giants such as Microsoft and Amazon.com, Inc. Google’s Suggest search function and HP’s microprocessor heat management technology were also developed here. This ecosystem was brought to life by government planning and initial support. Here, it is common sense to try again and start anew after failure. Failed entrepreneurs are regarded as those with real-world experience. The Israel Innovation Authority (IIA) provides $1 million in grants to founders seeking matching funds, helping them to challenge themselves again.
It is no coincidence that a country of 10 million people, surrounded by more than 400 million hostile neighbors, has managed to maintain stability and economic growth despite geopolitical instability and war. Behind the vibrant and flexible ventures leading the ‘innovation economy’ are government planning and continuous investment management.
In a world returning to the law of the jungle and facing fierce competition for technological supremacy, survival and the future are impossible without innovative growth. The top priority for a government representing the people must be to build an ecosystem for innovation-driven growth—and to stake everything on it. Only then can new success stories emerge, and even the underdogs can become leaders in such an environment. Israel stands as a precedent. As the potential growth rate plummets to zero, the new administration must be remembered by future generations for "establishing an ecosystem for innovative growth that resolved polarization and overcame growth limits." We look forward to a government that sows the seeds and patiently endures the present. Only then is there a future.
june@fnnews.com Lee Seok-woo Reporter