Israeli Tech in Texas

EXECUTIVE SUMMARY

The most underestimated economic story in America right now is the quiet convergence of the Start-Up Nation and the Lone Star State.
From the Office of the Governor of Texas, revised in November 2025: Israeli companies have invested $3.2 billion in Texas over the past decade. They have completed 34 foreign direct investment projects. They have created more than 4,200 jobs. Two-way merchandise trade between Texas and Israel reached $4 billion in 2024 — $757.9 million in Texas exports to Israel and $3.2 billion in imports from Israel. Israel ranks as the 19th-largest source country of foreign direct investment into Texas.
These are floor numbers. They capture only the formal foreign direct investment registry and merchandise trade flows. The full Israeli-founded business footprint in Texas — including startups, R&D centers, founder relocations, and acquisitions — is materially larger, and growing fastest in Austin and Dallas–Fort Worth. More than 40 Israeli tech founders have made Austin their U.S. base (Calcalist/CTech, January 2025), and the pace has accelerated since October 2023.
The story is built on three layers: an industrial spine of long-established anchor companies, an institutional layer of state-level partnerships built over twenty years, and a rapidly growing founder community choosing Austin as its U.S. base. 5W built this report to map all three.

KEY FINDINGS BAR (8 stat cards)

STAT 1: $3.2B - Israeli capital invested in Texas over the past decade (Office of the Governor of Texas, revised Nov 2025)

STAT 2: 4,200+ - Jobs created in Texas from Israeli FDI over the past decade

STAT 3: $4B - Two-way Texas–Israel merchandise trade in 2024 ($757.9M exports / $3.2B imports)

STAT 4: 19th - Israel's rank as a source country for FDI into Texas

STAT 5: 34 - Foreign direct investment projects completed by Israeli companies in Texas

STAT 6: 40+ - Israeli tech founders established in Austin as their U.S. base (Calcalist/CTech, Jan 2025)

STAT 7: $50M - Texas Venture Partners fund, launched Austin 2024, exclusively for Israeli defense-tech

STAT 8: 2017 - Texas became the first U.S. state to pass anti-BDS legislation; 35+ states have since followed

THE SIX FINDINGS

1. The anchors are decades old, large, and defensible. Elbit Systems of America (Fort Worth, U.S. arm of Israel's Elbit Systems) supplies the U.S. Department of Defense. The Alon USA Energy legacy (founded by Israeli entrepreneur David Wiessman, merged with Delek US Holdings in 2017) operates a substantial Texas footprint. NICE Ltd. (NASDAQ: NICE) is identified by TxEDC among major Israeli companies operating in Texas.

2. The Austin founder surge is the new growth tissue. More than 40 Israeli tech founders have made Austin their U.S. base (Calcalist/CTech, January 2025). Companies include Next Insurance, Papaya Global, Quali, REE Automotive, and Somite (led by Chorus.ai founder Micha Breakstone, whose previous company sold to ZoomInfo for ~$575M in 2021).

3. Five structural factors — none dependent on a single political cycle. Zero state income tax. One of the most pro-Israel state governments in the country. Aligned industrial bases in defense, energy, aerospace, and aviation. The fastest-growing population of any large U.S. state. Dense community infrastructure compressing the time required to land and scale.

4. Texas's full footprint is materially larger than the FDI registry shows. USIBA has published comprehensive economic-impact studies for New York ($19.5B output, 57,000 jobs), Florida ($7.3B output, 8,190 direct jobs, 429 companies), and Virginia ($2.3B output, 119 companies). USIBA has not yet published a comparable Texas study. Triangulation suggests Texas's full footprint is in the same tier as Florida.

5. Capital infrastructure for Israeli defense-tech is now in place in Austin. Texas Venture Partners — a $50M Austin-based fund launched in 2024, led by Tal Shmueli (ex-IDF Special Forces, ex-LinkedIn) and Lorne Abony — invests exclusively in early-stage Israeli defense-tech startups establishing U.S. operations in Texas. Typical check size: $1M–$4M.

6. The 2026 trajectory is accelerating. American Airlines resumed nonstop JFK–Tel Aviv service on April 23, 2026, after a more-than-two-year suspension. DFW–Tel Aviv is on American's published 2026 fare schedule as a future addition. The April 2024 TAB–TVA–Startup Nation Central MOU formalized Texas–Israel commercial collaboration. The Texas-Israel Alliance, Consider Texas, and the Israeli Economic Mission to the Southwest entered 2026 with active program calendars.

THE ANCHORS VS THE SURGE

On one side: the anchors. Elbit Systems of America in Fort Worth — defense, integration, program management. The Alon USA Energy legacy in Dallas — refining and retail fuel, now inside Delek US Holdings. NICE on the NASDAQ — analytics, customer engagement, compliance. Texas Venture Partners in Austin — a $50M fund built specifically for Israeli defense-tech.
On the other side: the Austin surge. Next Insurance. Papaya Global. Quali. REE Automotive. Somite. The Chorus.ai alumni who sold to ZoomInfo for ~$575M in 2021 and stayed. More than 40 Israeli founders building in a city one of them — Micha Breakstone, founder of Somite — described to Calcalist/CTech as "Israel without the PTSD."

The anchors are the spine. The surge is the growth tissue. Together they make Texas the most efficient U.S. landing zone for Israeli companies — and the corridor most U.S. CEOs are still underestimating.

FROM RONN TOROSSIAN, FOUNDER AND CHAIRMAN OF 5W

"Israel is the Start-Up Nation. Texas has quietly become its scale-up partner. Energy, defense, cyber, AI — every sector where Israel leads is a sector Texas builds in. Israel uses AI more intensely than any country on earth — 4.9 times the global baseline, the highest rate in the world. From where I sit in Israel, the founders driving that intensity increasingly talk about Texas as one of the friendliest places in America for Israelis to build."

WHY TEXAS, WHY NOW — THE FIVE STRUCTURAL FACTORS

The 5W operating framework for the Texas–Israel corridor. Each factor is durable. None depends on a single political cycle. A company that lines up against all five compresses years off its U.S. land-and-scale timeline.

Factor 1: Zero state income tax and a business-friendly regulatory environment. Texas is the world's eighth-largest economy on a sub-national basis. The scale advantage few states can match.

Factor 2: One of the most pro-Israel state governments in the country. Texas was the first U.S. state to pass anti-BDS legislation, in 2017 — a position now adopted by more than 35 states. Governor Greg Abbott led an economic mission to Israel in January 2020.

Factor 3: Aligned industrial bases. Texas leads the United States in defense, energy, aerospace, and aviation — the same sectors where Israel exports innovation at scale. The Department of Defense's procurement footprint in Texas is the largest of any state.

Factor 4: The fastest-growing population of any large U.S. state. Texas adds more people every year than most U.S. states have in total. Customers, talent, and capital — the three things any expanding company needs — arrive in volume.

Factor 5: Dense community infrastructure. The Texas-Israel Alliance (operating since 2007), Consider Texas, the Israeli Economic Mission to the Southwest, the Texas Venture Partners fund, and the April 2024 TAB–TVA–Startup Nation Central MOU compress the time required for an Israeli company to land and scale.

WHERE TEXAS–ISRAEL BUILDS

Israeli companies in Texas concentrate in the sectors where Israeli innovation has scale and where Texas has industrial demand:

Defense and aerospace — anchored by Elbit Systems of America in Fort Worth and accelerated by the Texas Venture Partners $50M Israeli defense-tech fund in Austin.

Energy and cleantech — the Alon USA Energy legacy plus BIRD Foundation collaboration on Israeli energy companies.

Cybersecurity — Israel originates 20%+ of global cyber venture funding; Texas's defense, financial services, and energy sectors are the deployment markets.

AI and enterprise software — concentrated in Austin. Israel ranks #1 globally on the Anthropic AI Usage Index at 4.9x the global baseline (per the 5W–Louder joint study, *Claude in Israel*, April 2026).

Mobility and advanced manufacturing — REE Automotive and others choosing Austin.

Healthtech and life sciences — the Houston medical center and the Austin biotech corridor.

HOW TEXAS COMPARES

USIBA has commissioned independent economic-impact reports for Florida (2024), New York (2024), and Virginia (2024). USIBA has not yet published a comparable Texas state report. The figures below contextualize the Texas footprint within the broader U.S. picture.

New York — 57,000 direct jobs / $19.5B total output (USIBA, 2024)

Florida — 8,190 direct jobs / $7.3B total output / 429 companies (USIBA, 2024)

Virginia — 2,400+ direct jobs / $2.3B total output / 119 companies (USIBA, 2024)

Texas — 4,200+ jobs / $3.2B capital (Office of the Governor of Texas, 2025; FDI registry only)

The Texas figures reflect the formal foreign direct investment registry maintained by the Office of the Governor of Texas. A comparable comprehensive state-level economic-impact study has not yet been published. Triangulation across data sources suggests that the full Israeli-founded business footprint in Texas places the state in the same tier as Florida.

FAQ

Frequently Asked Questions

How much have Israeli companies invested in Texas?

According to the Office of the Governor of Texas (Texas & Israel profile, revised November 2025), Israeli companies have invested $3.2 billion of capital in Texas over the past decade, completing 34 foreign direct investment projects and creating more than 4,200 jobs. Israel ranks as the 19th-largest source country of foreign direct investment into Texas.

What is the value of trade between Texas and Israel?

Two-way merchandise trade between Texas and Israel reached $4 billion in 2024 — $757.9 million in Texas exports to Israel and $3.2 billion in imports from Israel. Source: Office of the Governor of Texas, citing data from the U.S. Bureau of Labor Statistics and U.S. Census Bureau.

How many Israeli tech founders are in Austin?

More than 40 Israeli tech founders have established Austin as their U.S. base, according to January 2025 reporting by Calcalist/CTech. Companies include Next Insurance, Papaya Global, Quali, REE Automotive, and the founders behind the $575 million Chorus.ai exit to ZoomInfo in 2021.

What are the major Israeli companies operating in Texas?

Anchor Israeli companies in Texas include Elbit Systems of America (headquartered in Fort Worth, U.S. arm of Israel's Elbit Systems), the Alon USA Energy legacy (founded by Israeli entrepreneurs, now part of Delek US Holdings), and NICE Ltd. (NASDAQ: NICE). Texas Venture Partners, an Austin-based $50 million fund launched in 2024, invests exclusively in Israeli defense-tech startups establishing U.S. operations in Texas.

Why are Israeli companies moving to Texas?

Five structural factors: (1) zero state income tax and a business-friendly regulatory environment, (2) one of the most pro-Israel state governments in the country — Texas was the first U.S. state to pass anti-BDS legislation in 2017, (3) aligned industrial bases in defense, energy, aerospace, and aviation, (4) the fastest-growing population of any large U.S. state, and (5) dense community infrastructure including the Texas-Israel Alliance, Consider Texas, and the Israeli Economic Mission to the Southwest.

When did Texas pass anti-BDS legislation?

Texas was the first U.S. state to pass anti-BDS legislation, in 2017. More than 35 states have since adopted similar legislation.

What is Texas Venture Partners?

Texas Venture Partners is a $50 million venture capital fund launched in Austin in 2024, dedicated to investing in early-stage Israeli defense-tech startups and helping them establish U.S. operations in Texas. Leadership includes Tal Shmueli (Israeli-born, former IDF Special Forces, former LinkedIn executive) and Lorne Abony. The fund typically deploys $1M–$4M per portfolio company.

Are there direct flights between Texas and Israel?

American Airlines resumed nonstop New York JFK – Tel Aviv service on April 23, 2026, after a more than two-year suspension following October 7, 2023. American Airlines has listed DFW – Tel Aviv on its published 2026 fare schedule as a future addition. The DFW – Tel Aviv route was originally planned for June 2022 before a Boeing 787 delivery delay.

How do you compare Texas to Florida and New York?

USIBA has published comprehensive economic-impact studies for Florida ($7.3B output, 8,190 direct jobs, 429 companies), New York ($19.5B output, 57,000 jobs), and Virginia ($2.3B output, 119 companies). USIBA has not yet published a comparable Texas study. The verified FDI registry from the Office of the Governor of Texas — $3.2B capital, 4,200+ jobs — captures only formal investment projects. Triangulation suggests Texas's full footprint is in the same tier as Florida.

Who authored this report?

This report was published by 5W, the premier AI communications firm in the United States. Lead author is Ronn Torossian, Founder and Chairman of 5W. 5W has previously published the Israeli Tech in Florida Report (April 2026) and *Claude in Israel: A Study on the Startup Nation* (April 2026, in partnership with Louder). Inquiries: [email protected] or [email protected].

METHODOLOGY AND SOURCES

This report draws on verified third-party data registries. Where state-level Texas economic-impact modeling has not yet been published by USIBA or comparable independent research, this report relies on official FDI and trade data from the Office of the Governor of Texas. No modeled total economic output figure for Texas is presented.

Office of the Governor of Texas, Texas Economic Development & Tourism Office, "Texas & Israel" Trade & FDI Profile (revised November 2025)

Texas Economic Development Corporation (TxEDC), Israel Investment Profile

United States – Israel Business Alliance (USIBA) state economic impact reports for Florida, New York, and Virginia (2024)

USIBA National Unicorn Report

Anthropic Economic Index, via the 5W–Louder joint study *Claude in Israel: A Study on the Startup Nation* (April 2026)

Israeli Economic Mission to the Southwest, Embassy of Israel

Texas-Israel Alliance and Consider Texas

Calcalist / CTech, January 2025 reporting on the Austin Israeli founder community

Times of Israel, October 2025 reporting on Texas Venture Partners

BIRD Foundation

U.S. Census Bureau, USA Trade Online

U.S. Bureau of Economic Analysis (BEA)

USTR Israel Trade Profile

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ABOUT 5W

5W is the premier AI communications firm in the United States — one of the largest independent public relations and digital marketing agencies in the country, with approximately 275 professionals. Founded in 2003 by Ronn Torossian. Led by CEO Matt Caiola. Recognized as a top U.S. PR agency by O'Dwyer's, named Agency of the Year in the American Business Awards, and honored as a Top Place to Work in Communications in 2026 by Ragan.
5W's AI communications and Generative Engine Optimization practice is at [5wpr.com/practice/geo-optimization](https://www.5wpr.com/practice/geo-optimization.cfm).