Israeli tech firms raised a combined record amount of money in a record number of investment deals, according to a report by IVC Research Center, which tracks the industry, and Meitar Law Offices. Some $9.93 billion was invested in privately held Israeli tech firms in 2020, up 27% year on year, in 578 transactions, the Israeli Tech Review 2020 said. In 2019, Israeli tech firms raised $7.8 billion in 506 transactions, the data showed.
Mergers and acquisitions in 2020 suffered a hit, though, as economies globally were hobbled by the coronavirus pandemic. These transactions generated just $7.8 billion this year in 93 deals, compared to over $14.2 billion in 143 M&A deals last year (excluding the value of the Mellanox Technologies Ltd. deal in 2019).
In 2020, Israeli companies made 121 funding deals on the Tel Aviv Stock Exchange and global capital markets, raising a total of $6.55 billion in initial public offerings, follow-on offerings and other capital market transactions covering both equity and debt through primary and secondary offerings. This compares to just $1.95 billion in funds raised in capital markets in Israel and abroad in 2019.
In 2020, the amount invested in late-stage companies increased substantially to $8.33 billion, from $6.51 billion last year, compared to investments in early-stage companies, which was just $1.6 billion vs $1.3 billion in 2019. “Mega deals” of over $100 million were common in 2020, making up nearly one-third of the total amount, the data showed. There were 20 deals worth over $100 million this year, totalling $3.26 billion, compared to 18 such deals totalling $2.62 billion last year and just four totalling $640 million in 2018.
The sectors that got the biggest checks this year were cybersecurity, fintech and internet of things. Cybersecurity firms raised $2.58 billion, fintech firms raised $1.48 billion, and IoT firms raised $1.5 billion.
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Ms. Pearlini Wathore
Economic and Trade Mission of Israel in Mumbai