The past twelve months were by far the best to date for startups receiving funding within Start-Up Nation. Total investment in Israeli startups was close to $10.3B. This is incredible considering most of the rest of the world struggled with operations due to a global pandemic.
The hottest sectors for 2020 included Cyber security, FinTech, and Smart Mobility. The increase in workers operating remotely and the need for company data to be easily integrated from multiple locations supports the interest in investment in all of these. It was also unfortunately quite common in 2020 to hear about data breaches every few months, which strongly supports the need for better privacy control systems for companies.
FinTech has been a growing vertical worldwide for a while, and large players within Israel include eToro, and PayKey, among others. eToro is a website where you can learn the basics about different cryptocurrencies, and then once armed with that knowledge, purchase virtual currencies like ETH and BTC. There also is a feature where you can do the same trades as very popular traders, a relatively newer strategy for virtual currencies. PayKey is a company allowing businesses to offer customers immediate access to various financial services while on their phone. This will be especially popular to banks, who want to maximize their touch points with customers. The customer only needs to use their messaging keyboard in order to use their services.
Cyber security is the most well-known category for Israeli startups and by far received the most investment last year. Specific companies include Perimeter 81, Aqua Security, and Wiz. The incredible fact about Wiz, which is a cloud design platform, is that within one year of beginning, they secured their first funding round, which totaled eight figures and became backed by some of the biggest names in Silicon Valley. Perimeter 81 was created to give secure network access to companies, and touts itself as a leader in Secure Access Service Edge (SASE). Aqua Security protects a company’s applications from development to production, across all workloads, and up and down the stack. All three of these companies definitely have a sizable market, and a growing one too.
As for overall trends, sectors and their funding from 2020 as well as ’18 and ’19 can be summed up as follows: