The IVC-LeumiTech Israeli Tech Assessment Q3/2024 full report might be printed in October, however the preliminary numbers launched at present present a cause for optimism, which is fairly exceptional, given the warfare.
Israeli startups raised $2.43 billion within the third quarter of 2024, throughout 99 rounds, representing a 32% enhance in comparison with the identical interval in 2023 (pre warfare). Excluding the massive transactions (6 transactions of over $100 million), the investments within the third quarter amounted to $1.33, a 5% enhance in comparison with the earlier quarter.
Regardless of the expansion, Q3 2024 noticed a 20% lower in funding and a 17% drop in deal quantity in comparison with Q2 2024, highlighting volatility.
In distinction to the dominance of the cyber sector within the earlier quarter (62% of the entire capital raised), within the third quarter the scope
The transactions amounted to about 14% of the entire of all rounds. SSI Inc. $1 billion spherical accounted for 41% of complete Q3 investments.
Overseas investor participation remained robust, whereas native investor exercise declined resulting from geopolitical and financial uncertainties. Regardless of the warfare, within the final 9 months Sequoia , Greylock and Accel all opened places of work in Israel, and Founders Fund appointed a accomplice to cowl Israeli offers.
One other robust indicator has been exits/ liquidity. Within the final 30 days Salesforce acquired three Israeli startups for a mixed $2.6 billion, Israeli gaming startup Superplay was acquired by Playtika for $700M in money (and as much as $1.9 billion in earn out targets) and Wiz, Israel’s quick rising cybersecurity startup is talks on elevating funding at $20 billion valuation, after turning down a Google acquisition provide for $23 billion. Not dangerous, contemplating the headlines you examine Israel day by day.
The report printed by Startup Nation Central earlier this month showcases this in additional element:
Israel continues to attract traders in search of daring, decided options to international challenges. With engaging valuations and immense development potential, the Israeli tech ecosystem stays resilient—irrespective of the circumstances.
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– Startup Nation Central: One 12 months of Israeli Innovation in Struggle
2024 has been a really arduous 12 months, crammed with loss and anxiousness. Most Israelis (and Jews around the globe) are coping with the aftermath of what’s been the most important bloodbath of Jews because the Holocaust and the numerous losses that adopted within the battlefield. It is going to take time to heal these wounds. However total, these early indicators of restoration make me optimistic about the way forward for Israeli tech.
Whereas the variety of firms being based has gone down, the standard has gone up. Whereas the credit standing for Israel has gone down, the overseas investor curiosity remained excessive. And when you comply with historical past, one of the best firms have been constructed after a disaster. There are nonetheless big challenges forward, however we should proceed to construct, now with a stronger sense of objective than ever earlier than. As we’re approaching the Jewish New 12 months, I’ll take the chance to want a Shana tova and Chatima Tova to all these celebrating.
I am a former common accomplice at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google’s first bodily hub for startups.
I am additionally the founding father of Techbikers, a non-profit bringing collectively the startup ecosystem on biking challenges in assist of Room to Learn. Since inception in 2012 we have constructed 11 faculties and 50 libraries within the growing world.
