Tech Innovation

Six Months of Innovation

Tech Innovation

March 25, 2024

Startup Nation: Six months of Innovation in war

finder Insighs

Israel’s tech ecosystem is an innovation powerhouse, tackling global challenges with out-of-the-box, scalable solutions.
The high-tech sector fuels 14% of Israel’s GDP, contributes 30% to tax revenues, and constitutes 48% of exports. Plus, with the active presence of 450 world-leading multinationals, Israel’s impatient innovators are a main vector of the nation’s economy.

Economic Performance Since October 7

The aftermath of October 7th tested Israel like never before, yet we know that historically it’s during difficult times that Israeli tech rises to the occasion. This snapshot examines ecosystem metrics during the first six months of the current conflict, spotlighting investment trends, venture capital dynamics, and breakthroughs.
Despite recent challenges, Israel’s tech industry is not just surviving; investment flows and VC activities have remained robust, proving the sector’s unflagging innovation excellence. In fact, when compared to the US market, Israeli tech investment trends mirror those of its American counterpart, reaffirming its global standing even in turbulent times
Israel continues to attract investors looking for bold and determined solutions to shared global challenges with high potential opportunities. With attractive valuations and significant growth potential, the Israeli tech ecosystem is showing characteristic resilience – no matter what.
Against the odds, Israel’s tech industry is not just surviving; investment flows and VC activities have remained robust, proving the sector’s unflagging innovation excellence. In fact, when compared to the US market, Israeli tech investment trends mirror those of its American counterparts, reaffirming its global standing even in turbulent times
Israel continues to attract investors looking for bold and determined solutions to shared global challenges. With attractive valuations and significant growth potential, the Israeli tech ecosystem is showing characteristic resilience.

 

  • There were 190 private investment rounds announced since October 7th with ~$2.7 billion raised. Average investment amount was $22M. Sum of M&A’s since October 7th stands on $3.7B.
  • Two very large M&A deals were finalized with total acquisition amount near $1 billion. Since October 7th 22 new funds were established raising $1.7B.
  • 11 funds were established to address startup urgent funding needs due to the impact of the war and to show confidence in the Israeli tech ecosystem.

Capital Investment Year Over Year: Israel Compared to USA

Figure 1 – Private Investment YTD by Month,
March 2023=100%

Investments by Month:
10.2023-03.2024