Start-Up Nation Central, a non-profit organization that aims to promote the Israeli technological ecosystem in Israel and around the world, publishes today (Monday) the annual summary of the Israeli high-tech industry in terms of global investments in the field .
The report shows that investment in Israeli technology companies continues at a dizzying pace and the volume of capital raising has grown to an all-time high: $ 25.4 billion, a figure that represents a 136% increase compared to $ 10.8 billion in 2020. This is a significant increase compared to the global trend: average Global capital raising this year stands at 71% of the volume raised last year. For example, the volume of raising in the US was 78%, in the UK – 105% and in Singapore – 95%.
Leap in mega rounds
The three leading technology sub-sectors in Israel this year were fintech, security technologies, and enterprise data infrastructure (IT), with an emphasis on software companies, which offer fast solutions and are generally unaffected by the distance from the target market. These three sub-areas together represented 65% of the total capital raising in 2021, compared with 52% of the total capital raising in 2020.
The jump in mega-rounds – more than $ 100 million – is another sign of market maturity and investments in Israeli technology companies. This year there were 47 megabytes, more than double their number last year. In these rounds, a total of $ 14.77 billion was raised – more than 3 times more than last year (310%) compared to $ 3.6 billion last year. In fact in mega rounds more than half of the total amount raised this year was raised. In addition, the size of the median round increased from $ 6 million to $ 14 million.
33 join the Unicorn Club
Unicorns are private companies with a value of more than a billion dollars and this year 33 such companies were born in Israel and now 53 such companies operate here – almost twice as many as last year. It was also a record year for both issues and acquisitions – 57 companies were issued this year compared to 22 companies last year.
Total funding was $ 4 billion compared to a cumulative $ 1.7 billion. Beyond that 119 companies were acquired this year compared to 91 acquisitions made last year. The cumulative value of these companies has almost doubled from about $ 4 billion to $ 7.6 billion. Another trend that stood out this year was the increase in the number of Israeli start-ups acquired by Israeli companies. 39 such transactions were made this year, compared to 21 last year. Of course, the quality of investors in the country is also an important indicator, and this year we saw leading funds from around the world that participated in the rounds of fundraising.
Start-Up Nation Central CEO Avi Hasson said in publishing the report that “the boom in the industry creates challenges: Companies continue to face the challenge of recruiting workers, while Israel suffers from a shortage of tens of thousands of workers in the industry. Start-Up Nation Central works with the goal To assist the Israeli technology community in overcoming its obstacles, by developing career training and placement programs, influencing government policy through its research institute, and creating connections between Israeli entrepreneurs and governments, multinational corporations and investors, in order to ensure the continued growth of the Israeli ecosystem and the entire Israeli economy. “.
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