With 2021 in the rearview mirror and a wide-open road to 2022, Israel tech has a long way ahead. Case in point is the bumper year Israel tech startups have had in 2021 with record-breaking fundraising and exits, accompanied by an impressive number of unicorns joining the billion-dollar club. These numbers prove how well Israel tech is being accepted, appreciated, and valued all across the world.
In a world where AI and digital have become the norm, Israel offers solutions to the challenges that could transform the global tech scenario. Investors across the globe realize the talent Israel has to offer, whether it is in Healthtech, Cyber, or Renewables.
In 2021, Israel raised a staggering $25 billion in 770 rounds which is more than double the 2020’s figures. 2021’s fundraising represents an astounding 136% increase over 2020, double the average global growth of 71%.
Apart from this, the three sectors that largely governed the fundraising for 2021 were Cybersecurity, FinTech & Data Infrastructure. Coined as the ‘Big three,’ these sectors were able to work smoothly despite the COVID-19 pandemic and contributed to 65% of the total funds raised in 2021 (compared to 52% in 2020).
Furthermore, 33 new Israeli tech companies joined the billion-dollar unicorn club in 2021, taking the total number of Israeli unicorns to 53! A country with a population of 9 million, Israel is genuinely carving a niche for itself in the startup ecosystem.
Many attribute this to the superior talent in Israel, which is well-trained and experienced across different sectors. This is also very well indicated by the number of IPOS and acquisitions undertaken in Israel in 2021. 57 companies IPO’ed in 2021 (raised from 22 in 2020), raising accumulatively $4 billion. Another trend that stood out last year was the number of Israeli startups that were acquired by Israeli companies themselves (39 deals in 2021).
Another notable shift was how foreign investors primarily dominated the investments. While earlier, Israel was more of a niche market for Investors across the globe, the recent trend shows that more and more big names are looking to make foreign investments in Israel through VC funds or even directly to get early access to the best of what tech has to offer.
These numbers indicate the effect Israel’s tech and innovation have on the investors, along with their attractiveness and growing influence on the market, which will only further heighten in the coming times.
To know more about Israel startups and their ecosystem, please reach out to:
Ms. Priyanka Nangalia
Trade Officer -Trade and Economic Mission, Mumbai