The Israeli technology sector is among the most competitive in the world. It is known for its high standards and rapid innovation, making it a global leader. The high-tech industry also plays a pivotal role in the country’s economy, accounting for 16% of employment, over half of exports, and a third of income tax revenues. Despite global economic challenges, Israeli tech companies have attracted USD 9 billion in investments since October 2023, trailing only Silicon Valley and New York.
Evgenii Lazarev, a founding engineer at Zesty, an Israeli “minicorn” startup, shared insights into market dynamics and how Israel’s startup ecosystem fosters the development of specialists, retains talent, and drives technological innovation. In addition to building the product from the ground up, he has become an active advocate for startup culture, promoting its values in industry media and professional circles communities.
The Role of Accelerators in Israel’s Ecosystem
Accelerators are a cornerstone of Israel’s vibrant startup ecosystem, offering the resources and guidance needed for emerging companies to thrive. Evgenii emphasizes that startup growth hinges on two essential factors: a strong team with technical and engineering expertise, and a robust ecosystem that nurtures that talent. He explains that talent alone is insufficient; startups require investments, accelerators, hubs, mentors, and other support structures to realize their potential. Reflecting on his own experience, Evgenii recalled how his immersion in the Israeli tech landscape was transformative:
“All of this became clear to me first-hand 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.
“In Israel, there are numerous opportunities for early-stage startups and developers looking to scale their ideas. Techstars, one of the largest international accelerator networks, launched its Techstars Tel Aviv program to help it expand globally. MassChallenge Israel, the local branch of the well-known American accelerator, has attracted hundreds of Israeli startups by offering access to international mentorship, networking, and investment opportunities,” Evgenii notes.
Among local initiatives, accelerators such as 8200 EISP stand out — a program founded by alumni of Israel’s elite Unit 8200 that focuses on supporting deep tech startups.
“For developers, participation in such programs is a chance to secure funding and gain access to cutting-edge technological knowledge, international networks, and best practices. This becomes especially significant in a highly competitive talent market, where startups need not only to attract specialists but also to foster an environment where they can grow professionally,” says Evgenii.
Competition Among Startups for Technical Talent
One of the key features of Israeli startups is the fierce competition for developers. Companies often struggle to find the right candidates, especially in the early stages, as the global competition for IT specialists is intense — and Israel is no exception. However, the battle for talent is particularly tough on the local market: startups find it difficult to attract developers. At the same time, international companies are ready to offer high salaries, further fueling the competition. With specialists in such high demand, they can choose from the best offers, making team building a complex 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 is home to R&D centers for some of the world’s largest international firms, including Google, Microsoft, Apple, Intel, Meta, Amazon, and many others. These companies offer attractive salaries and create additional demand for top-tier talent. Meanwhile, the country remains a global leader in startup density. According to Startup Genome, Tel Aviv consistently ranks among the top five startup ecosystems worldwide, showcasing one of the highest per-capita concentrations of tech entrepreneurs. This creates a dynamic yet highly competitive market for all players, from early-stage ventures to multinationals corporations.
At the same time, the caliber of local specialists is as high as the competition itself, mainly due to the country’s talent development system. According to Startup Nation Central, over 30% of all startups in Israel were founded by individuals who served in the military, including the elite Unit 8200. Graduates of this program gain experience in cybersecurity, data analysis, and building complex technological solutions, making them highly sought after by both startups and IT corporations.
Expectations for Developers
Israeli startups seek developers with deep technical expertise and a strong understanding of infrastructure, architecture, and the overall logic of the product. Unlike in large corporations, where engineers usually specialize in narrow areas, working at a startup demands a broader perspective — an understanding of how the entire system is constructed, how its components interact, and which solutions will enable the product to scale.
“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. Such an approach requires constant attention to infrastructure, architectural solutions, and resource optimization.
“To build our product practically from scratch, I had to dive deep into AWS billing and figure out how to optimize companies’ expenses,” Lazarev recalls. AWS billing is updated with a 2–3 day delay, posing a problem for businesses spending hundreds of thousands of dollars on cloud infrastructure. “They couldn’t see where their money was going in real time, so they couldn’t react quickly to overspending,” he explains.
To solve this, Lazarev developed a real-time expense-tracking system. “I used two data sources: on the one hand, AWS billing with a delay; on the other, hourly snapshots of the client’s system. By combining these datasets, I got a more accurate picture of costs, all in owing clients to see them instantly,” he says.
This project required extensive work with Big Data, databases, and computing power optimization. “I tested different technologies to process large volumes of data without losing performance. Elasticsearch was one option, but it was far from ideal. The key is understanding which databases and architectural solutions are suitable for high-load environments,” he adds.
Even that wasn’t enough. The product had to be deployed quickly and adapted to various business scenarios. “We were essentially deploying code to production right away. The founders would strike deals with clients, pass their requests along to me, and I’d implement a solution immediately. It demanded not just speed but also the ability to instantly adapt the system to new conditions,” Lazarev recalls.
Israel’s tech environment sets an extremely high bar for development. Engineers don’t just write code; they use technical solutions to solve real business problems.
The Israeli startup ecosystem provides startups everything they need to grow: investments, accelerators, developed infrastructure, and a strong tech community. At the same time, it presents serious challenges — intense competition for talent and the need to move at maximum speed.
“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 illustrates why Israel has become one of the world’s most powerful tech ecosystems. Companies here grow rapidly, and the market demands technical expertise and the ability to understand infrastructure, production environments, and business logic.
An example is Zesty, which evolved from a small Israeli team into an international player by adapting to global requirements and scaling its technology. But that journey isn’t an exception; it’s part of a broader pattern: Israeli startups aim for global markets from day one and build 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.
This article was written in cooperation with The Top Voices Media
