The IVC-Gornitzky-KPMG Investors Report for the first half of 2024 analyzes trends and activities in the Israeli venture capital market, including corporate venture capital funds, institutional investors, and foreign venture capital funds. It also examines the availability of capital for Israeli tech startups.
In H1/2024, just 10 Israeli VCs secured $554m for new funds. Two large VCs accounted for 73% of the total, raising $200m each: Red Dot Capital Partners and Vintage Growth Fund.
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Fund of Funds, Secondary and Venture Lending Funds
In H1/2024, two strategic investment funds raised $600 million: Viola Credit venture lending fund and Valoo by Meitav secondary fund, an increase of 64% compared to $385 million in two funds in 2023, but far from the heights of 2022 (six funds raised $2.47 billion).
IVC’s analysis indicates that Israeli venture capital funds had approximately $10.2 billion in unallocated capital as of August 2024. Of this amount, roughly $2.4 billion is earmarked for new investments, while the remaining $7.8 billion is allocated to existing portfolio companies.
Ben Klein, IVC CEO: “IVC is collecting and analyzing data on the Israeli tech ecosystem for over 25 years. Due to the lingering war, 2024 wasn’t expected to be a usual year. The first half of 2024 highlights a challenging and dynamic period for the Israeli VC landscape. While the overall capital raised has decreased compared to previous years, the market remains resilient, with substantial dry powder”. Klein added that “as the ecosystem recalibrates, we anticipate a shift toward supporting existing portfolios while selectively investing in new ventures.”
Israeli Institutional Investors
In H1/2024, Israeli institutional investors participated in 13 rounds totaling $40 million, the lowest level since 2020, a notable drop compared to $158 million and 40 rounds in 2023.
(depending on the final institutional activity report, this number may vary by up to 20%).
Most Active Funds
Seven Israeli funds were ranked the most active funds in H1/2024. VC fund OurCrowd led the score with 16 new investments in H1.
Israeli VC MCs by Managed Capital
In H1/2024, 231 active Israeli VC management companies (MCs) managed 440 active and fully invested funds. Viola manages the largest number of funds (13 funds), followed by Pitango (12), JVP (10), Pontifax and Vertex (8 funds each), and 83North and TLV Partners (7 funds each).
