As Israeli startups increasingly look beyond Silicon Valley for capital and growth opportunities, Texas is positioning itself as a new gateway to the US market, a trend that was on display at the inaugural Unicorn Rodeo conference in Dallas in late October.
The conference, organized by the Texas-Israel Alliance, brought together Israeli founders, investors and business leaders with Texas venture capitalists, executives and policymakers, connecting the Israeli mindset with the Texas mentality to develop commercial relationships between the two markets.
“After months of planning, it was incredible to see Unicorn Rodeo come to life in Dallas. Something truly special happens when Texas, the Scale-Up state, and Israel, the Start-Up Nation, come together. And you could feel it at our sold-out event that drew entrepreneurs, investors, elected officials, and community leaders,” said Tal Shmueli, Executive Director, Texas-Israel Alliance.
Shmueli told The Jerusalem Post that “we wanted more Israeli companies to see what’s happening in Texas: infinite talent, deep capital pools, and a business-friendly environment. Those who make the move will also find a welcoming community that feels like home, and that wants them to win.”
Texas ranks as the eighth-largest economy in the world, with a GDP of roughly $2.7 trillion, and trade between Israel and Texas stands at about $4 billion. Israeli founders, once more likely to establish operations in New York or California, are now choosing Texas in growing numbers.
Unicorn Rodeo
Speaking to the Post following the event, Doug Deason, president of Deason Capital Services, said the event, which drew close to 500 participants, is intended to become a permanent fixture in the relationship between the two innovation ecosystems.
"It far exceeded expectations," he said. "Having over 100 people from Israel come in, some incredible companies that are truly venture capital opportunities, and then businesspeople in Texas who have already made that transition and succeeded."
Featured speakers included Ben Lamm, founder and CEO of Colossal Biosciences; Michael Fey, co-founder and CEO of Island; Micha Breakstone, co-founder and CEO of Cellular Intelligence; Dallas Mayor Eric L. Johnson; Doug Deason, president of Deason Capital Services; Adi Farjon Israel, consul general of Israel to the Southwest; and former Mossad director Yossi Cohen.
At least 50 speakers participated in over 10 sessions covering artificial intelligence, defense technology, cybersecurity, healthcare, and biotechnology.
Deason told the Post that the organization changed its name from the Texas-Israel Chamber of Commerce to the Texas-Israel Alliance in 2016 because “we wanted something more innovative."
For Deason, Unicorn Rodeo’s success has already prompted plans to expand the concept.
"We'll have two annual rodeos. One in Texas and one in Israel,” Deason told the Post. "I love Israel. I've always been fascinated by the Middle East.”
Innovative defense hub
Texas has quietly become one of America's most important centers for defense and innovation.
The state hosts key military assets, including Army Futures Command in Austin and Joint Base San Antonio and Fort Cavazos, creating a dense network for defense research, testing, and procurement. Army Futures Command, headquartered in Austin, works with universities, industry, and military partners on modernization and advanced technologies.
Federal innovation organizations have also embedded themselves in the state's start-up ecosystem. In Austin, the Defense Innovation Unit, AFWERX, and other defense innovation entities operate from Capital Factory, creating direct pathways between emerging technology companies and the Department of Defense.
That concentration has helped transform Texas into a major center for defense innovation, particularly for dual-use technologies with both civilian and military applications. The proximity of start-ups, investors, and military organizations accelerates testing, adoption, and procurement of new technologies.
Major destination
Texas is also set to open its trade office in Jerusalem next year as it seeks to capitalize on growing commercial and technology ties with Israel. The planned Jerusalem office is being positioned as a hub for commercial engagement between Israel and all the countries that have signed on to the Abraham Accords.
The trade office’s opening is significant as Texas has increasingly established itself as a major destination for defense and dual-use technology companies, sectors where Israeli start-ups have long been competitive.
As Texas builds its position as a center of defense innovation and advanced technology, the alliance is betting that more Israeli entrepreneurs will look beyond traditional American hubs and increasingly view Texas as a gateway to the US market.