It is second only to Silicon Valley as a hub of tech innovation.
As Israel's tech industry matures, it has, so far, produced 68 public companies traded on Nasdaq.
It has also increasingly attracted investment by venture capitalists worldwide. And it's hottest companies have been a big target of acquisitions, particularly by big U.S. tech companies.
For instance, among the 20 hottest startups we named on our 2013 list, Waze was bought by Google for $1.1 billion, PrimeSense was bought by Apple for $345 million, Soluto was sold to a company called Asurion for an estimated $130 million, and Wix had a successful $119 million IPO,
Once again we compiled this list by asking people in the Israeli tech scene to name the buzzy, hot companies they are watching. Plus we threw in a few of our own. We used CrunchBase as our source for venture funding information.