Israeli Hi-Tech Venture Capital Fundraising Hits Lowest Point in a Decade: Report
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Synopsis
In 2024, Israeli hi-tech Venture Capital funds raised $1.15 billion, marking a 40.1% decrease from the previous year and the lowest since 2015. The report highlights a shift in market preferences and rising investments in biotech and digital health sectors.
Key Takeaways
- Israeli VC funds raised $1.15 billion in 2024.
- Year-over-year decrease of 40.1%.
- Lowest fundraising amount since 2015.
- 21 VC funds participated, the fewest since 2016.
- Investment in biotech and digital health increased.
Jerusalem, March 3 (NationPress) In 2024, Israeli hi-tech Venture Capital (VC) funds accumulated $1.15 billion, marking a 40.1% decrease year-over-year and representing the lowest level since 2015, as revealed by an annual investors' report released on Monday.
The funds were raised by 21 VC funds, the lowest number since 2016, compared to 32 in 2023. This comprehensive report, co-authored by the Israel Innovation Authority, consulting firm KPMG Israel, Gornitzky GNY law firm, and the IVC Research Centre, analyzes trends and activities among investors in the Israeli tech landscape.
The findings also indicate a yearly drop in the number of VC funds securing over $100 million each, decreasing from nine in 2023 to five last year. Additionally, initial investments by foreign corporate venture capitals fell to 73 deals in 2024, the lowest figure in a decade.
According to the authors, these statistics unveil a complex dynamic within the Israeli VC market, with fundraising reaching a decade low. Notably, actual investment volumes have risen compared to 2023, despite ongoing conflicts. The report hints at a possible change in sentiment for 2025, as numerous funds are currently engaged in fundraising activities.
In terms of investment sectors, cybersecurity and generative AI companies continue to garner significant attention from Israeli VCs in 2024, while fintech and food tech sectors have seen their lowest levels since 2018, indicating a shift in market preferences, as reported by Xinhua news agency.
Furthermore, 2024 witnessed a notable rise in VC fund investments in biotech and digital health, with deep tech maintaining strong momentum. Geopolitical tensions and conflicts have also intensified interest among investors in Israeli defense technologies, according to the report.
