Tel Aviv at sunset, Israel Startup Israel
Israel Startup Nation had a decent year in 2023. Israeli high-tech fundraising totaled $6.9 billion over 392 rounds according to a report released by IVC and LeumiTech.
IN Q4/2023 – during which the Iron Swords War in Gaza was and is being fought – Israeli tech companies saw a decrease in both money raised and the total number of fundraises held of 15% and 16%, respectively, compared to Q3/2023. The totals in Q4 were $1.45 billion raised in 75 different deals.
Seed rounds climbed to $220 million in 31 rounds, however.
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The foreign investors’ share in Q4/2023 investments grew compared to the Israeli investors’ participation.
(These are preliminary results. A full report will be released in January.)
The report also found that fundraising activity in 2023 was similar to the long-term pattern found in 2018-2019. The data reflected a 44% decrease in the number of deals and a 56% drop in the amount of raised capital compared to 2022.
LeumiTech CEO, Maya Eisen-Zafrir said “We continue to see in the 3rd quarter’s data the first signs of stabilization in the amount and scope of capital raising, which bring us to the levels of 2018-19.”
She added that there was still a decrease in initial investments (early rounds) saying that it was more moderate compared to what was seen.
“In addition,” she added, “we recognize a stabilization in the rate of follow-on investments, an indication that the companies are beginning to adjust their value to the new interest rate environment.”
According to Ben Klein, CEO of IVC, “The year 2023 was challenging for the Israeli economy in general, and local high-tech in particular. The results of the entire year, especially the fourth quarter, support an optimistic approach towards the local industry.”
But, explained Klein, despite the “complexity” foreign investors’ participation level was a “clear sign of the attractiveness of Israeli high-tech companies, even in difficult times.”
