Israeli Cybersecurity, Fintech, and Enterprise Solutions Companies Lead Israeli Tech Companies 6-Month Record Breaking Fundraising Total of $10.5 billion
by Guest Author
According to the latest data, Israel’s innovation technology sector broke a new capital funding record this week, reaching a total of $10.5 billion raised since the start of the year. In doing so, it matched the total raised throughout the whole of 2020, which was itself a record year, in less than half the time.
According to the data, the significant rise in investments focused on the more advanced stages, with most of the capital (64%) invested in rounds C or later. 2021 has already set a record for the number of mega-rounds (investments of over $100 million) raised, with 30 having been completed so far compared to 21 mega-rounds throughout all of 2020. These rounds represent 53% of all capital raised, and for the first time, they account for more than half of the total funds invested.
The marked increase in investments in Israeli tech companies (most of which originate from foreign investors) is even more pronounced when compared with investment performance worldwide. While Israel recorded an increase of 137% for the first five months of 2021 compared to the first five months of 2020 (according to Start-Up Nation Finder), the increase globally was only 89%. Europe recorded an increase of 123% over the same period, while the U.S. saw an increase of 91% and Asia saw an increase of 69%, according to PitchBook data.
The bulk of funding went to cybersecurity, fintech, and enterprise solutions companies, with the top three sectors pulling an accumulated $6.2 billion or 60% of all investments. These sectors are all software, strongly B2B oriented, and saw huge increases in demand for their solutions over the last year as work practices changed.
This activity attests to the continued vitality of Israel’s tech sector at a time when the world has its concerns about the economic recovery after covid. Clearly the investment community sees Israel’s economic growth as going in the right direction…..UP!
About the Author
Sherwin Pomerantz has lived in Israel for 34 years and is president of Atid EDI Ltd., a Jerusalem-based business development consulting firm, the founding Chairperson of the America State Offices Association, and a former National President of the Association of Americans & Canadians in Israel. He has 24 years’ experience in assisting overseas companies and public entities in their export promotion and foreign direct investment attraction efforts.
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