Israel’s technology sector has experienced amazing growth in recent years, which led to the country earning the mantle of Startup Nation. In fact, 2014 was a record year for Israel’s tech scene with nearly $15 billion in acquisitions and IPOs. Mobile app development is one area that is seeing amazing growth — and things don’t seem to be slowing down. We’re excited to announce the release of our spotlight on Israel’s explosive mobile app economy, David vs. Goliath: Israeli Publishers Taking on the World. Download our latest report to learn which companies are excelling in overseas markets, key countries driving success for Israel’s top publishers, paths taken by Israel’s “app pioneers” that aspiring publishers are emulating, and much more. Below is what you can learn from our free report: -Which Israeli companies are generating the most downloads and revenue overseas -Why the United States is a key market for Israeli publishers (plus other lucrative overseas markets) -The paths taken by Israel’s successful app companies, including Waze, Playtika and TabTale To gain access to the full report, check out our presentation.

1.
David vs. Goliath:
Israeli Publishers Taking on the World
© App Annie 2015

2. David vs. Goliath: Israeli Publishers Taking on the World
Table of Contents
1. Introduction
2. Israel’s Leading International App Publishers
3. United States Is Key to Overseas Growth
4. Israel’s App Pioneers: A Blueprint and Benchmark for Success?
5. Summary
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3.
David vs. Goliath: Israeli Publishers Taking on the World
1. Introduction
Israel’s technology sector has experienced phenomenal growth over the past few years,
earning the country the moniker of Startup Nation. This growth culminated in a ​record year​ for
Israeli tech company exits in 2014, with acquisitions and IPOs totaling almost $15 billion.
Mobile app publishers are a key part of the Israel’s tech scene, and several of its leading
examples have reaped the rewards through large exits over the past five years. Navigation
app publisher Waze was ​acquired by Google​ in 2013 for a reported value of $1.3 billion. On
the gaming side, Playtika, now with one of the biggest casino games on the app stores in
Slotomania​, ​joined Caesars Entertainment​ in 2011 on the strength of its social casino gaming
performance. Dragonplay, another social casino gaming company, was ​acquired by Bally
Technologies​ for a reported $100 million in 2014.
Innovation and growth continue unabated in the mobile app space in Israel. With a relatively
small domestic market, overseas success is vital to publishers looking to be the next big story
from Israel’s tech economy. In this report, we take a close look at which Israeli publishers are
leading the way and the path they follow to bring innovative apps to the world stage.
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4.
David vs. Goliath: Israeli Publishers Taking on the World
2. Israel’s Leading International App
Companies
Note: App Annie defines company headquarter location according to the location of the parent company
headquarters. As a result, publishers acquired by overseas companies were not considered in the top Israeli
companies.
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5.
David vs. Goliath: Israeli Publishers Taking on the World
TabTale​ led independent Israeli publishers by both revenue and downloads over the past
year. From its 2010 origins, TabTale has grown to one of the world’s leading publishers of
apps for kids. It has cemented its position as one of the powerhouses of the Israeli app
economy with acquisitions of Israel­based ​Kids Games Club​ in 2013, ​Coco Play​ in 2014 and
both ​Level Bit​ and ​Sunstorm Games​ in 2015.
Following TabTale, the top international Israeli publishers reveal the diversity of the app
development environment in the country. Games accounted for around 45% of overseas
downloads and around 65% of overseas revenues for these leading publishers. The top
publishers covered the full spectrum of mobile gaming, but social casino gaming proved
particularly strong, led by publishers like ​InfiApps​, ​Diwip​, ​Scene53​ and ​LuckyFish Games​.
Outside of gaming, the top Israeli companies are equally diverse. The range of categories
covered encompasses communication apps like those from ​Rounds​ and ​Glide Talk​, photo
and video app companies such as ​Magisto​ and ​Lightricks​, keyboard creators like ​a.i.type​,
karaoke apps from ​Famous Blue​, and health and fitness publishers ​Clear Sky Apps​ and
Matis​. This diversity indicates that it is not just one particular sector performing well in Israel,
but rather the region is host to a broad and strong app environment.
3. United States Is Key to Overseas
Growth
Although it is little surprise to see the United States as the leading market for both downloads
and revenue for Israeli publishers, the disproportionality of its share is notable. Given that
significant investment and acquisitions in the Israel mobile app space have largely come from
US­based companies, it follows that this would be a primary strategic target for Israeli
publishers. In contrast, the impact of publishers from Israel is relatively limited in Asian
countries, most likely reflecting the historical export ties between Israel, the United States and
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