Famously known as the ‘Startup Nation’ of the world, the innovative startups in Israel create one of the fastest-growing ecosystems in the world. With its advanced technologies, state-of-the-art R&D centers, and increasing government support, a lot has happened within the Israeli tech scene in 2022.
While the funding across the globe in 2022 had significantly reduced (approx. 35%), the Israeli funding had specifically decreased by 40%. In 2021, Israel had raised close to $29B whereas, in 2022, the Israeli startups managed to raise only around $17B. One of the reasons is the poor public market performance which was caused by the high inflation rates in 2022.
Despite this fall in capital raised, Israel managed to maintain its position as the fifth-largest tech ecosystem in 2022 with a total capital investment of $17B. The top four countries above Israel are- the USA ($235B), China($64B), the UK ($28B), and India ($23B). The top sector that managed to raise most of the capital in Israel continues to be cyber security followed by IT, FinTech, Healthcare, and RetailTech.
Additionally, 21 new unicorns (valuation of $1B or above) were added in 2022, expanding the list to a total of 85 unicorns in Israel as of January 2023. What else, the M&A market of Israel continued to be extremely active last year; a complete total of 109 M&A deals were closed in 2022 with a total deal size of $18B. Some of the notable M&As are- Unity & ironSource, Tower Semiconductor & Intel, Granulate & Intel, Zimperium & Liberty, etc. This is largely possible because of the growing interest of multinational corporations like Intel, Google, Apple, etc in Israeli tech and their confidence in the scalability opportunities offered by them.
These are some of the top & innovative startups in Israel in 2022 which are definitely worth mentioning:
Bee-io is a food-tech company located in Israel. They address the rising demand for honey in an eco-friendly and sustainable way. BEE-IO offers an innovative solution where they produce honey without bees. This is done by their novel and bee-free honey production technology that protects the bees and their colonies.
Reep Technologies offers the world’s first practical, industrial-strength system for circular printing. Reep’s solution sets a new standard in sustainability for office printing, while also meeting the requirements for leading enterprises and organizations. Reep technologies aim to increase document safety and save operations costs through circular printing.
6Degrees is an Israeli startup that has developed a hands-free adaptive controller for people who are unable to use their hands. The company has created a technology that can easily translate movements into a command on any smart device- including computers, tablets, smartphones, etc. With every single move, the technology learns and adapts to the user’s unique motions and adjusts as per their needs.
Pigmentum offers a sustainable and highly scalable solution for the low-cost production of high-value natural compounds for industries such as food and nutrition, health, diagnostics, and research. Pigmentum is developing a patent-protected molecular technology platform that can turn indoor or outdoor-grown crops into efficient producers of high-value compounds at a fraction of the cost incurred by the current fermentation-based industrial production plants.
Green Kinoko has developed an elegant outdoor cooling air conditioner based on smart patented cooling technology. Their product ‘Kenshō’ is the first outdoor air conditioner that doesn’t need an electrical connection. Kenshō by Green Kinoko brings the green revolution to the outdoor cooling and has already brought great demand for collaborations in the long term.
Article written by Priyanka Nangalia , Trade Officer -Trade and Economic Mission, Mumbai