Startup hub opens near Lebanon border

A new innovation and entrepreneurship hub is set to open next month in northern Israel near the Lebanon border, as local organizers push to rebuild the region’s economy after months of disruption and evacuation linked to the war.

The center, branded HUBayta, has been established in the Galilee Panhandle at the former Agamon Market complex near the Hula Valley—an area known for its seasonal crane migrations. 

The commercial site was abandoned during the war, leaving a vacant facility in an evacuated zone. Organizers have since renovated the space into a 1,500-square-meter complex designed to offer modern office infrastructure comparable to major business districts in central Israel.

Unlike many regional development initiatives, the project is being led by a grassroots residents’ group rather than government ministries. 

The organizers say they chose to act while the conflict was still ongoing, raising 8 million shekels (about $2.5 million) in initial funding and refitting the building to attract technology companies and remote teams.

The hub is nearing capacity even before its official launch. Organizers report 85% occupancy, with about 20 companies expected to operate from the site by January, including a dozen startups. 

Some of the incoming firms are relocating parts of their operations from central Israel to the north, a shift that is expected to create around 80 jobs immediately, with projections of 200 jobs within two years.

The initiative is targeting companies eligible for state-backed innovation support, offering three main benefits: high-grade office and connectivity infrastructure, assistance recruiting technology talent, and help navigating government grants designed to encourage business activity near the northern confrontation line. Organizers say several companies have already secured grants worth hundreds of thousands of shekels as part of the move.

Beyond coworking space, the complex is expected to include meeting rooms, classrooms and an entrepreneurship program. Organizers say partnerships are also being developed to bring professional training to the site, including artificial intelligence courses as early as next month.

Supporters of the project describe it as an attempt to strengthen the Galilee’s economic resilience and encourage residents, particularly young professionals, to live and work in the region rather than moving to Israel’s center. 

They argue that rebuilding the north will require regional coordination and locally driven execution, not only national planning.

One of the first companies set to move in is a drone technology firm developing autonomous aerial systems and so-called air taxis. 

The company has decided to relocate its software development division to the new hub, just a few kilometers from the Lebanon border. 

Executives involved in the move say the shift is also helping draw employees back to their home communities in the north after years of working in the Tel Aviv area.