Israelis join Americans in flocking to Florida for business
Israelis join Americans in flocking to Florida for business
Similar weather and low taxes have attracted Startup Nation to Florida for those seeking an eastside state to do business
Israelis looking to do business in the United States often choose coastal hubs like New York or California. That much we know, and the numbers speak for themselves. But recent years have shown that states like Florida can be an incredibly pro-business and pro-Israel place for those overseas looking to expand their business and tackle the American market.
“Many people in the past used to see Florida as a tourist state: Tourism, Disney World, retirement, and good weather,” said Limor Ashkenazi, Director at SelectFlorida. “There's actually a lot more to the state… I've seen the change in the conversation. There's definitely more awareness.”
SelectFlorida is Florida’s official international trade and investment promotion organization supporting the economic development of the state. Its mission is to attract, retain, and create foreign direct investments and higher-wage jobs for Floridians. It works to attract several countries around the world and has a dedicated office in Israel with representatives focused on helping Israeli companies who often look toward other locations. “We promote the business advantages of the state to Israeli companies,” she clarified.
Florida may be known as the home of Walt Disney World Resort and alligators, but its business opportunities can be very favorable for Israelis looking to expand their business. Israel and Florida both have a history of strong cooperation in the defense and homeland security and life sciences sectors, and a 2013 MoU ensured collaborative research, development, and commercialization of projects relating to them.
In 2022, the total bilateral merchandise trade between Florida and Israel was $651 million, making it Florida’s 4th largest partner in the Middle East and 47th largest partner overall. Israeli imports and exports to Florida totaled $228.2 million and $422.6 million respectively, with leading industries including Motor Cars and Vehicles, Electronic Circuits, and Medical and Surgical Instruments. Perhaps most attractive for small businesses is its 0% state income tax, compared to rates in New York or California that could reach 10-12%.
Prominent Israeli-owned companies with operations in Florida already include Israel Discount Bank, El Al, Insightec, Tabit, and Wix.com, among several others. Governor Ron DeSantis visited Israel in 2019 leading a Business Development Mission to Israel with more than 100 Florida delegates to promote these ties, even returning in 2023. Miami Mayor Francis Suarez visited Startup Nation in 2022, promoting its tech scene and interest in cryptocurrency technologies.
“It’s not only a gateway to North America or the rest of the Americas, but also to Latin America, which is also a big advantage of the state,” Ashkenazi said, highlighting the region’s diverse and multilingual workforce. “Of course Florida’s tech ecosystem is expanding rapidly, and while there is still competition, it also offers unique opportunities that might not be available in more established ecosystems.”
Outside of its growing tech sector is a healthy community of Jewish residents that can be an attractive draw to those who may find themselves relocating for business. There are currently approximately 514,000 Jews in South Florida with 20% of that in Boca Raton, a short 40-minute drive from Miami. This year, Calcalist and CTech are hosting Mind The Tech in Miami for the first time, promising a mix of Florida-based entrepreneurs and businesses ready to connect with Israelis looking to make a splash there. The conference is expecting 400 participants, among them business leaders from the U.S., entrepreneurs, VC fund managers and startup CEOs, and seniors from the high-tech ecosystem. The Israeli delegation will include Israel's most prominent VCs and investors considering investments in the American market, as well as CEOs and startup companies with significant centers in the U.S., or that are looking to expand to Miami.
“It's definitely comfortable for Israelis to open up in Florida from any perspective,” Ashkenazi added. “You know, it's a pro-Jewish state - there are big Jewish communities there… It's familiar, it's multilingual, and it's a very diverse culture that appeals to Israelis as well. So from that point of view, it definitely has an advantage to other states that don't have that.”
In addition to SelectFlorida, various other programs and organizations help bridge the gap between the Sunshine State and Startup Nation. The Florida-Israel Business Accelerator was launched in 2016 and designed to establish and grow successful Israeli ventures in Tampa Bay. It also works with the Israel Innovation Authority directly on several R&D collaborations similar to what BIRD does with all 49 other states.
In total, more than 50 Israeli companies are operating in more than 65 branch locations across the whole state. Israel is the 19th largest foreign direct investor and its affiliates account for more than 2,500 jobs in the state. All in all, it might be time to swap the New York Cheesecake for the Florida Key Lime Pie.
