Israeli-founded companies have become a cornerstone of New York City’s economic engine, contributing billions to the U.S. economy and creating tens of thousands of jobs.
Yet the future of these firms in New York is increasingly uncertain, as the city’s mayoral race exposes tensions between pro-Israel business interests and a growing wave of progressive opposition.
Israel Innovators in the U.S.
According to the 2025 New York–Israel Economic Impact Report by the United States–Israel Business Alliance (USIBA), 590 Israeli-founded firms operating in New York City have directly created 27,471 jobs, with an additional 50,000 jobs supported indirectly.
These companies generated $8.1 billion (Ksh1 trillion) in total earnings, added $12.4 billion (Ksh1.6 trillion) to the city’s economy, and drove $17.9 billion (Ksh2.3 trillion) in gross economic output in 2024 alone.
Employees at these firms earn an average salary of $160,126 (Ksh20.7 million) per year, including benefits and bonuses.
The companies are concentrated in high-value sectors such as technology, finance, healthcare, and cybersecurity, reflecting Israel’s global reputation as a startup powerhouse.
Since USIBA’s first report in 2019, 142 new Israeli-founded companies have entered the New York market, creating 3,674 direct jobs.
The city now hosts 30 Israeli-founded unicorns—startups valued at over $1 billion—including Wiz ($10B/Ksh1.3 trillion), Fireblocks ($8B/Ksh1 trillion), and Melio ($4B/Ksh516 million).
Mamdani vs Trump
The economic success of Israeli firms in New York is now facing a political test.
Zohran Mamdani, the Democratic Socialist frontrunner in the city’s mayoral race, has drawn criticism for his support of the BDS movement, refusal to affirm Israel’s right to exist as a Jewish state, and past statements that many Jewish leaders have called anti-Israel.
Mamdani’s rise has alarmed Israeli business leaders.
A biotech CEO told the New York Post that his company might reconsider its presence in New York if Mamdani wins.
“If someone on our team is moving to New York, I want them to be in a pleasant area where they don’t feel fearful, or, from a business perspective, deal with people that are shying away because the company’s Israeli.”
President Donald Trump has also weighed in, threatening to withhold federal funding from New York if Mamdani is elected.
Mamdani responded by vowing to “Trump-proof” the city through tax reforms and legal resistance.
Role of the NYC Mayor
The Mayor of New York City is considered one of the most powerful municipal executives in the United States, overseeing city services, budget management, appointments, legislation, economic development, and international business relations.
The mayor plays a strategic role in attracting and supporting international businesses, including Israeli-founded firms.
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Through the Mayor’s Office of International Affairs and the NYC Economic Development Corporation (NYCEDC), the administration:
- Facilitates foreign investment and startup expansion
- Promotes NYC as a global innovation hub
- Supports sectors like tech, life sciences, urban manufacturing, and finance
- Ensures that foreign-born entrepreneurs (who own 50% of NYC businesses) have access to city resources
USIBA’s Strategic Role
Founded in 2019 and headquartered in Manhattan, USIBA has played a pivotal role in tracking and promoting Israeli business activity across the U.S.
Its president, Aaron Kaplowitz, emphasized the strategic importance of New York.
“Israeli founders continue to be indispensable to New York. In addition to creating local jobs and bringing much-needed revenue to communities, they are integral to propelling the state’s innovation economy forward.”
Kaplowitz added that New York’s cosmopolitan appeal, access to capital, and direct flights to Tel Aviv make it the top choice for Israeli entrepreneurs entering the U.S. market.
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Despite global challenges, including the COVID-19 pandemic and the Israel–Hamas war, Israeli companies have expanded their footprint in New York.
But the upcoming election could reshape the city’s business climate.
With $13.3 billion (Ksh1.7 trillion) in total value added by Israeli firms statewide and nearly 58,000 jobs at stake, the outcome of the mayoral race may determine whether New York remains a welcoming hub for Israeli innovation or becomes a battleground for ideological conflict.
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