Israeli NGO StartUp Nation Central (SNC) report has found that January 2021 saw record investments of $1.44 billion in Israeli startups, in a single month. The record amount raised during a single month, beating the $1.2 billion raised in September 2020.
Six startups raised more than $100 million (mega-rounds) each during January, accounting for 73% of the total, a record-breaking $1.44 billion.
Moreover, the mega-rounds in January 2021 alone, equal to 30% of mega-rounds in the entire 21 rounds of 2020, a record year of $10 billion raised by Israeli startups.
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The six mega-rounds announced during January 2021 were raised by the following companies: Fintech, Rapyd, a global payment network developer, $300 million, D Round; Network Infrastructure Drivenets, a cloud-native software network developer, $208 million, B round; Enterprise solutions OwnBackup, an automatic cloud backup company, $167.5 million, D Round; Digital health K Health, telemedicine app, $132 million, E Round; Ecommerce company Resident, $130 million, B Round; and FinTech Melio, B2B payments company, $110 million, D Round.
Fintech was the dominant January with two ‘mega-rounds’ totaling $413 million, 29% of the total fundraising in January.
Those figures show Fintech continues its strong performance since September 2020 with $1.4 billion in investments compared to only $340 million raised in the first eight months of 2020.
SNC director of research Meir Valman said, “The record level of fundraising in recent months is driven by two effects. One is the increasing maturity of the Israeli tech ecosystem when rapidly growing startups are able to raise much larger rounds. The other is the effect of Covid-19 on Israeli companies, which pivoted rapidly to address the challenges of the pandemic, but they will also stay relevant long after it is gone.”