I think that while there seems to be a very active startup community in and around Tel Aviv, I think it could only be considered a real option to people of Jewish decent (who can prove it and are willing to go through the "Aliyah" immigration process) or if you are married to an Israeli. With those barriers for entry, Tel Aviv (Israel) pretty much drops off the list. I must say, though, that there is definitely no shortage of talent in Israel, with fresh and eager graduates from Israels Technion, Tel Aviv University and the University of Be'er Sheva.