In the first third of 2024, despite the backdrop of ongoing conflict and the disruption of Passover holidays, Israeli startups have shown remarkable resilience and capability, amassing a substantial $2.6 billion in investment capital. A significant milestone was reached in April 2024, as Israeli ventures secured over $1 billion in funding—a first in several years. This figure, impressive as it stands, potentially understates the true scale of investment, given that some enterprises prefer to operate stealthily and may not report their financial infusions.
Comparative data underscores the vibrancy of this year's figures. In 2023, the total capital raised was $6.9 billion, a dip from the $15 billion in 2022 and far from the peak of $25.6 billion in 2021, according to IVC-Leumitech. Despite these fluctuations, the robust start to 2024 offers a promising outlook for the sector.
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— What's Next in Israel Tech (@whatsnextisrael) May 1, 2024
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In this video, Gerson Panitch interviews Shai Granot.#whatsnextinisraeltech pic.twitter.com/hUqknweplD
Highlighting this quarter, major funding rounds were led by prominent companies including Cyera in data security, securing $300 million. Following closely were Island in enterprise browser security with $175 million, the short-term rental platform Guesty with $130 million, and Hailo, an edge AI chipmaker, with $120 million. Additionally, Magnus Metal in digital casting successfully raised $74 million.
In response to the difficulties posed by the ongoing war, which commenced with the October 7 attack by Hamas, a new social impact fund has been launched. The Southern Israel Bridging Fund (SIBF), in collaboration with the Rashi Foundation and ICA in Israel, both noted for their philanthropic impact, focuses on providing crucial seed funding to Israeli early-stage startups. These startups are developing solutions across vital areas including sustainable agriculture, affordable housing, accessible healthcare, clean technology, and financial inclusion. Initially, the fund has gathered $4 million and plans to invest up to $140,000 in each qualifying startup.
In the fast-paced world of startups and entrepreneurship, the right support can make all the difference between success and stagnation. That's where @HetzVentures, led by Co-founder and Managing Partner @JudahTaub3, comes in a beacon of hope and opportunity for visionary minds… pic.twitter.com/KnoxCx36s2
— IsraelTech (@IsraelTech) April 25, 2024
The conflict has led to the Israeli army mobilizing hundreds of thousands of reservists, a significant number of whom are integral to the tech sector. This mobilization poses unique challenges, particularly to early-stage startups which struggle with operational continuity and critical funding acquisition in the absence of key personnel.
By channeling investments into these areas, SIBF aims to bolster the overall resilience and sustainability of the Israeli startup ecosystem. Recognized globally for its dynamism and as a strong contender on the global innovation stage, second only to Silicon Valley, the Israeli tech sector continues to be a crucial player in worldwide entrepreneurship.
SIBF, with $450 million in managed assets, strategically invests in sectors such as renewable energy, food tech, healthcare, and agritech, supporting ventures from initial stages through to growth financing rounds. Since its establishment, SIBF has invested in 38 tech companies, with amounts ranging up to $20 million.
Israel Innovation Authority Launches New Fund to Establish Three Venture Incubators , Who Will Build Tens of New Cutting Edge #DeepTech Startups in Israel. #VentureCreation https://t.co/PiIfrekLoR pic.twitter.com/ZqJRY544xX
— Israel Innovation Authority (@InnovationAutIL) April 14, 2024
The Rashi Foundation, founded in 1984, has a long-standing mission to support Israel’s less privileged communities, particularly focusing on enhancing social mobility through education and employment initiatives. ICA in Israel, founded by Baron Hirsch, promotes rural development in strategic regions like the Negev and Galilee, with investments spanning agriculture, education, and tourism.
