The marked increase in investments in Israeli technology companies (most of which come from foreign investors) is even more pronounced compared to the performance of investments in the world. 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 search), the overall increase was only 89%. Europe recorded an increase of 123% over the same period, while the United States recorded an increase of 91% and Asia saw a 69% increase, according to PitchBook The data *.
Uri Gabai, the new CEO of Start-Up Nation Central’s new Research and Policy Institute said: “Record funding in 2021 indicates that growth in 2020 was not a short-term boost related to Covid, but reflects the growing confidence of major investors in Israel’s innovation ecosystem. The significant increase in the median transaction size reflects a mature ecosystem that is able to maintain its competitive advantage as a global hub of technological innovation and deliver problem-solving solutions. future-oriented human capital. ”
The median amount of the funding cycle has more than doubled year over year $ 6.8 million in 2020 at $ 14 million through June 8 in 2021. In terms of growth towers (tower B or more), the median tower size has increased from $ 26 million in 2020 at $ 46 million in 2021. Start-ups experienced a similar increase in median funding of $ 4 million at $ 8 million.
The significant increase in investment in Israeli high-tech and innovation since the start of the year has focused on the more advanced stages, with most of the capital (64%) invested in C towers or higher.
2021 has already set a record for the number of mega-towers (investments of more than $ 100 million) raised, with 30 completed to date compared to 21 mega-towers for the whole of 2020. These towers represent 53% of all capital raised and for the first time represent more than half of total funds invested.
Most of the funding goes to cybersecurity, FinTech and enterprise solutions companies
The three main sectors drew a cumulative $ 6.2 billion or 60% of all investments. These industries are all software, heavily B2B oriented and have seen a tremendous increase in demand for their solutions over the past year as work practices have changed.
Start-Up Nation Central is the unique gateway to the Israeli innovation ecosystem. Founded in 2013, it is a non-profit organization that leverages its knowledge, resources, and network of key industry and government ties to connect innovative Israeli technology solutions with corporations. multinationals, governments, investors and NGOs around the world.
Start-up nation search is a free online platform to identify and engage Israeli tech organizations based on specific client interests. This business innovation platform is a comprehensive knowledge center on Israeli startups, investors, acceleration centers, multinational companies and technological innovation associated with academic research. The open source platform provides up-to-date information and information on thousands of active Israeli tech companies.
* Nation Central Start-Up application submitted June 8, full access requires subscription.
Infographics – https://mma.prnewswire.com/media/1529469/SNC_Infographic.jpg
SOURCE Start-Up Nation Central (SNC)