Israel has a highly developed startup and venture capital ecosystem, with Tel Aviv ranked as the second best startup ecosystem globally. In 2014, Israeli startups raised $3.4 billion in funding, had 688 venture capital deals closed, and 18 companies went public. Israel also excels in exiting startups, with $9.8 billion raised from companies that went public and $15 billion generated from mergers and acquisitions. Factors contributing to Israel's success include heavy investment in research and development, a culture of entrepreneurship, compulsory military service that provides leadership skills, and strong support from technology incubators and university technology transfer offices.