True, but you have to take into account that Tel Aviv is one of the few places where terror attacks aren't just something politicians pull out of their bags to scare voters - their are an actual thread.
These days that's actually more of an issue in areas directly bordering the Palestinian Authority (such as Jerusalem).
Tel Aviv didn't really have much terrorist bombing recently - I wouldn't be surprised if more people (even per-capita) died in NYC, London or Madrid in the past 10 years than in Tel Aviv, and you'd never consider terrorism to be a reason not to move to either of these cities.
Regardless of where you decide to build your start up there will be local dangers. Not sure of the stats but you are probably more likely to get taken out by a drive-by in California, or a mugging/beating in New York than a terrorist in Israel. The stress of knowing there are terror attacks is probably what will get to you first. I don't think the OP mentioned stress/crime free environment as one of his pre-requisites, but if that place exists, please let me know about it.
