On October 7, when Hamas brutally invaded Israel and the Gaza War began, all high-tech trade in Israel was suspended, and local high-tech companies compared to those in politically more stable countries worldwide. Concerns arose about the competitiveness of
But a new analysis by Startup Nation Central released on Sunday and based on data published on the company's Startup Nation Finder platform shows that Israel's tech sector remains “strong and stable.”
“Despite significant challenges such as an approximately 15% reduction in human capital due to military enlistment and short-term funding shortfalls affecting small start-ups, Israel’s tech ecosystem has shown resilience. and continues to attract investment, investors and venture capital activity,” Startup Nation Central said.
Since Oct. 7, there have been 220 private investment rounds worth about $3.1 billion, with an average investment size of about $19 million, according to the data.
According to the data, medical technology had the highest number of investment rounds, followed by software solutions and security technology.
Security technology topped the list in terms of funding, with nearly $1.1 billion raised.
Mergers and acquisitions since October 7 have been valued at $3.7 billion, including two large acquisition deals of nearly $1 billion each. Companies were sold for more than $1.5 billion in March alone, according to publicly available data.
“The high-tech sector has recovered from zero, with much higher funding volumes compared to the same period last year,” 10D general partner Itai Rand said in a separate release. “In terms of investments, there was little movement in the market between October and November, but this quarter we have seen a return of global funds with an interest in Israel.”
He said: “The Israeli technology industry is very strong, with many employees returning from the reserves in recent weeks and making their presence felt in start-ups that are progressing faster thanks to their human capital. “I'm doing it,” he said.
Regarding investments in Israel in general, Startup Nation Central showed that the downward trend is in line with that of the United States. But new money is also coming into the country.
New funds continue to flow into the country
More than 20 new funds have been launched since October 7th, raising a total of $1.7 billion, according to a report from Startup Nation Central. Eleven of these funds were established to address the urgent financial needs of start-up companies facing financial difficulties as a result of the war.
Israeli technology companies have focused on the U.S. market under the slogan “Israeli technology delivers no matter what.”the company reported jerusalem post Various interviews have shown that the concept is working.
Pavel Gurevich, who recently sold his cybersecurity company to Akamai for $600 million and now manages operations in Israel, said the continued performance of Israel's technology elite is “mainly driven by breakthroughs. It is a tribute to the entrepreneurs and Israeli engineers who have succeeded in creating technology.” Establish a company and sell it on such terms. ”
