Sunday, October 08, 2023

Investors abandoning Israeli tech in 2023

Bad news at a very bad time! Is this a trend in Western countries and Israel? Are investment patterns changing?

"Behind the 20% fall in investments in Israeli startups between the second and third quarters of 2023 is an even more dramatic statistic, Start-Up National Policy Institute (SNPI) reports, with the number of deals almost cut in half from 131 to 77 between July and September. ...
is also due to entrepreneurs choosing to raise money from existing investors, without setting a company's new valuation known as SAFE raising. ...
disappearance of some investors from the scene ...
A further sign that Israel's tech industry is shrinking is the significant depletion of large investments in mature companies and the rate that new unicorns are being created. SNPI found that only one new Israeli unicorn has been created since the start of 2023 ... During that period, two new unicorns were created in Singapore, three each in the UK and Germany, and 26 in the US. ..."

"The slump of the Israeli high-tech persists. Q3 2023 was the seventh consecutive quarter of declines in equity investments. This overview focuses on investments in Israeli high-tech, and since at least part of this decline is tied to the global slowdown, we compared Israeli data with that of the US and Europe. ..."

Investors abandoning Israeli tech - research - Globes Investments fell by 20% and the number of deals by nearly 50% in the third quarter of 2023, Start-Up Nation Policy Institute has found.
















No comments: