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.