Israeli hi-tech’s fundraising down 42% in 2022: Report

Jerusalem: Israel’s hi-tech companies have raised a total of $14.95 billion in 2022, the Israeli IVC Research Center reported.

This is a sharp decrease of nearly 42 per cent, compared with the record-high $25.86 billion raised in 2021, according to the Israel Tech Review, written by IVC and Bank Leumi.

“The main reason for the annual decline is the reduced activity in global markets, which resulted from economic instability and a decline in companies’ value,” Marianna Shapira, research manager at IVC, told Xinhua on Tuesday.

“The activity in the Israeli market reflects the global slowdown, as seen in the second half of the year,” she added.

However, the funds raised in 2022 are the second highest in history, with most of the amount invested in the sectors of cybersecurity, food tech, and fintech, the report said as quoted by Xinhua news agency report.

A total of 663 deals, 36 of which were mega-deals of at least $100 million, have been made during 2022. In addition, 706 hi-tech companies were established in Israel in the past year, it added.

The authors predict that 2023 will be difficult for many Israeli start-up companies, but without a major economic crisis or a significant change in the geopolitical map, there will be a return to growth in capital flowing into Israeli hi-tech in the second half of the year.

–IANS

 

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