Despite the challenges posed by the conflict with Hamas, Israeli high-tech firms demonstrated resilience by securing $1.5 billion in funding during Q4 2023, as reported by the Israel Venture Capital (IVC) Research Centre and LeumiTech.
Preliminary data indicates a 15 per cent dip in fundraising compared to the third quarter, with 75 deals closed. Notably, early-stage “seed” funding amounted to $220 million across 31 rounds.
Foreign participation increased in Q4, signaling continued international interest in Israeli startups. The presence of 70 US tech executives in Israel last week further underscored support for the sector.
LeumiTech CEO Mia Eisen-Tzafrir emphasized the industry’s durability, highlighting its significant role in Israel’s economy, contributing to 12 per cent of employment, over half of exports, 25 per cent of income taxes, and nearly a fifth of overall economic output.
Despite a decrease in overall funding from $16 billion in 2022 to approximately $7 billion in 2023, the fourth quarter’s performance reflects optimism and resilience in the face of economic challenges and geopolitical events, with a return to pre-2020 investment levels.
