Israeli fintech sector raises record USD 2.3 billion in H1 2021, report says. The last two years saw 70% of Israeli fintech funding funneled into three sub-sectors—payments, anti-fraud, and insurtech.

Investments in Israeli fintech (financial tech) firms soared to a record $2.3 billion in the first half of 2021, representing a record-breaking 260 percent increase over funding in the first half of 2020. It also surpassed 2020’s full-year total of USD 1.8 billion by 28%. These fintech investments made up 19% of the USD 12.2 billion invested in Israeli tech companies in the first half of 2021, according to a newly published report by Start-Up Nation Central, or SNC.

Israel’s fintech sector has already had 68 funding rounds in the first half of 2021, nearing the 74 total funding rounds last year. There were 26 seed rounds in the first half of 2021, compared to 18 in all of 2020 and 15 C+ rounds in the first half of 2021, compared to just 13 in all of 2020. Seven companies have raised investments of more than $100 million in the first half of 2021, compared to only five in all of 2020.

The report displayed a breakdown according to round type, which showed an increase in both the number of seed rounds and also in the number of rounds for Series C and above. “This indicates that while fintech is a mature sector, new startups are continuing to emerge,” SNC said in a statement.

The report shows that the trend has continued in 2021, with payments in the top spot comprising 35% of fintech funding in the first half of 2021, as the demand for online payments skyrocketed with COVID-19 restrictions.

The first half of 2021 also saw investment growth in enterprise solutions, according to the report. This new demand was “largely spurred by the pandemic-induced rush for corporate innovation, which created an opportunity to modernize legacy processes,” SNC said.

 

For further information on FinTech solutions from Israel, contact the Economic and Trade Department at the Consulate General of Israel in Mumbai.

Siddhant Gupte; Trade Officer, Mumbai

Email: siddhant.gupte@israeltrade.gov.il