2023-11-21 14:16:30
After the attack by militants of the radical Hamas movement on Israel and the subsequent escalation of the Palestinian-Israeli conflict, venture capital investments in Israeli startups decreased significantly. As he writes Financial Times (FT) citing data from research company IVC, in October capital investments in local technology companies amounted to $325 million. A total of 120 transactions were completed. For comparison: in September there were 232 deals totaling $1 billion. Thus, the total amount of venture investments decreased by more than three times.
“Some startups were close to completing an investment round, close to a deal, everything was going well. And then the war began. Investors did not leave, they simply said that they wanted to wait and see (at developments – Kommersant),” says Chemi Peres, managing partner of the Israeli venture fund Pitango.
Periods when venture capital investments in Israeli high-tech declined have happened before. For example, after growing during the pandemic, investments declined amid macroeconomic instability and rising interest rates. However, the decline after the start of the war was much steeper.
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