This by itself is of course nothing new, as Israel keeps attracting the attention of top global funds looking for great deal flow outside of Silicon Valley, NYC and Boston; large corporates interested in tapping into innovation coming out of Israel; and large scale startups acquiring smaller Israeli startups as a strategy to get a foot in the Startup Nation door. Given all that, it is no surprise that funding for Israeli startups has reached a record high in 2016 with Israeli tech companies raising $4.6 billion this year, up from $4.4 billion in 2015. The growth in funding is supported in part by massive influence of Chinese investors who "want a piece" of Startup Nation too and invest directly in companies as well as in Israeli VC funds. On the flip side, 2016 was the year we saw a major decline in exits of Israeli companies which took a plunge of 67% compared to the previous year, with no huge, billion dollar Waze-type exits. While global market dynamics definitely played a role here, this is also a sign of maturity of the Israeli tech ecosystem where startups are less excited to sell early and strive to grow bigger companies.
The Equifax breach, WannaCry, NotPetya, the NSA leak, and many more cyber incidents – 2017 was certainly a busy year for hackers, illustrating yet again just how vital innovative cybersecurity solutions are in the fight against cyber threats. Second only to the U.S., in terms of cybersecurity investment 2017 was another excellent year for Israeli cybersecurity startups, with dozens of companies being formed, breaking fundraising records and producing solid exits. The 2017 data also suggest that the Israeli cybersecurity industry is maturing, as we see a shift in funding towards later stage companies. In 2017 we witnessed 60 newly founded cybersecurity startups emerge in Israel, a 28% decrease from the 83 companies founded in 2016. Conversely, the average 2017 seed round increased 16% YoY, growing from $2.85 million to $3.3 million.
Investors expect to funnel money into more digital health firms in 2022, according to a new survey by the Israel Advanced Technology Industries (IATI), Israel's umbrella organization of high-tech and life science industries. The survey was conducted by the McKinsey & Company group among 25 venture capital funds and investment bodies. It highlights a strong year of investment in the digital health sector in 2021, driven by the development of medical tech focusing on remote care, preventative care, and telehealth solutions in the wake of the COVID-19 pandemic. The venture capital funds that participated in the survey include OurCrowd, Israel's most active crowdfunding platform, aMoon, an Israeli-based global health tech and life sciences investment fund, Entree Capital, a Herzliya-based venture capital firm, Pitango, the VC co-founded by Chemi Peres, and Jerusalem Venture Partners (JVP, as well as 20 others. The report found that 60 percent of investors said they expect to invest more in digital health over the course of the year, while 36 percent said they expect to invest the same amount as 2021.
The wild ride may be over for tech startups. Venture capitalists, the ones who invest billions into promising ideas for companies, have cut back on spending. Chris Sacca, an investor in Uber and Twitter, says of tech in early 2016: "Reality is setting in." (Photo: Bryan William Jones for USA TODAY) SAN FRANCISCO -- Is tech in for a rude awakening this year after a magic carpet ride the past few years? The numbers, and recent actions by once-highflying start-ups, would seem to suggest so. Consider: Mega-rounds, defined as funding of more than 100 million for venture capitalist-backed companies, are in free fall.
TEL AVIV, Israel, 16 April 2019--Israel's reams of electronic medical records –health data on its population of around 8.9 million people-- are proving fruitful for a growing number of digital health startups training algorithms to do things like early detection of diseases and produce more accurate medical diagnoses. According to a new report by Start-Up Nation Central, the growth in the number of Israeli digital health startups –537 companies, up from 327 in 2014--has drawn in new investors, including Israeli VCs who have never previously invested in healthcare. This has driven financing in the sector to a record $511M in 2018, up 32% year on year. By the first quarter of 2019 the amount raised was already at $214M. Of the $511M, over 50% ($285M) went to companies in decision support and diagnostics which rely heavily on data crunching.