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Record-High $3.9 Billion Invested in Israeli High-Tech Companies in H1 201

A new report finds that Israeli high-tech companies and startups raised a record $3.87 billion across 254 deals in the first half of 2019, with $2.32 billion raised across 125 deals in Q2 alone – the highest amount for any quarter since 2013.

The report, prepared by the IVC Research Center and the ZAG-S&W law firm, points to a maturing high-tech ecosystem in the Startup Nation, with more capital raised across fewer deals compared to the 2014-2018 average. Late-stage companies saw their investments hit record highs, while early-stage investments were stable and mid-stage financing declined.

The three largest Q2 deals totaled $670 million – nearly 29 percent of the total raised in the quarter:

  • Insurance technology startup Lemonade raised $300 million.
  • Monday.com, a workplace software company, raised $250 million.
  • Cybersecurity company Sentinel Labs raised $120 million.

Companies operating in the artificial intelligence, cybersecurity, and big data clusters attracted the most investments, as they have for the past seven years. AI-focused companies raised $1.509 billion, companies involved in cybersecurity raised $993 million, and companies in the big data cluster raised $816 million.

Other leading recipients included companies in autotech ($560 million), fintech ($531 million), and IoT ($432 million).

Financing deals over $20 million accounted for the lion’s share of total funding in H1, with 53 such deals totaling $2.78 billion. Deals exceeding $50 million also saw significant growth compared to the same period in 2018, with $1.7 billion in 15 deals in H1 2019 versus $920 million in nine deals in H1 2018.

Venture capital funds played a pivotal role in both quarters. While VC-backed deals accounted for only 148 of the 254 total deals, their total funding amounted to $3.158 billion in H1.

Seeking to capitalize on Israel’s globally renowned prowess in innovation, foreign investors stepped up their investments in Q2 compared to previous quarters, investing $1.57 billion – underscoring that even as Israeli high-tech undergoes maturation, the country’s entrepreneurial culture and track record of developing game-changing solutions continue to attract investors on the lookout for the next big thing in tech.

To read the full report, click here.

For more information, please contact Israeli Economic and Trade Mission in Thailand at +66 2 204 9241-3 or Bangkok@israeltrade.gov.il.