Much has been written about Israel’s innovation ecosystem and its capabilities of churning out high-value startups that cater to different domains and requirements of the globe. Whether we are talking about healthcare or agriculture, EVs or automation, Israel has provided solutions in all these other areas and more. Among all these sectors, the one that is making significant waves is FinTech.

2021 especially, has been a fantastic year for the FinTech startups in Israel. According to recent reports, Israeli FinTech startups in 2021 raised a record-breaking $4.5 billion, which trumps the combined funds raised in the last three years. They had raised $1B, $1.5B & $1.9B respectively in 2018, 2019 and 2020. Apart from this, they had 13 mega-rounds (raised above $100M) with an average deal size of $230M. The average mega-round deal size in 2018, 2019, and 2020 was $100M, $120M, and $150M, respectively.

This growing average not only showcases the burgeoning interest in Israeli FinTech startups but also calls to attention the increasing faith of investors in Israeli FinTech solutions and innovations.

Infact, Israel, which is rightly known as the ‘Startup Nation’ of the world, is home to some of the most well-known FinTech unicorns like Lemonade, Pagaya, FundBox, Melio, etc. Revered as a major FinTech hotspot, Israeli startups are ready to go global with their game-changing solutions and technological prowess.

Some of Israel’s most sought-after FinTech technologies are cyber security, insurance, and payments, which have garnered explicit attention from investors looking to invest in Israeli startups. Israelis have something to offer in all these different functions, whether you are looking for global digital banking solutions or fraud-prevention technologies.

The one thing that truly differentiates the Israeli FinTech ecosystem from other countries is its powerful R&D centers, the continuing government support, the entrepreneurial drive of the founders, and of course, the ability to build something from the ground up, allowing them to be more versatile in their functions.

The versatility is one of the major reasons why Israeli startups can so easily customize their solutions to meet the divergent needs of their customers. This is what makes them so appealing to the global markets and has contributed so largely to their success.

In a nutshell, the FinTech industry of Israel has seen a significant leap forward in the last couple of years, and this is expected to only grow further with the increasing demand and the ground-breaking solutions that the Israeli entrepreneurs provide in the FinTech vertical for the world to adopt and adapt.


To know more about Fintech Startup Ecosystem in Israel, please reach out to:

Ms. Priyanka Nangalia

Trade Officer -Trade and Economic Mission, Mumbai