Blackstone hasn’t made significant investment in Israeli high-tech since opening local office two years ago
Blackstone hasn’t made significant investment in Israeli high-tech since opening local office two years ago
The financial giant hired Yifat Oron, former CEO of LeumiTech, to head its Tel Aviv office in April 2021, but the uncertain climate in the local industry means it remains unclear when Blackstone plans to make a significant investment in an Israeli startup
In April 2021, the investment giant Blackstone officially commenced its operations in Israel, making a notable appointment by hiring Yifat Oron, former CEO of LeumiTech, as a Senior Managing Director and head of its Tel Aviv office.
However, since then, the company has not made any investments in Israeli high-tech. It is worth noting that Blackstone had previously invested in Israeli technology companies, such as Pentera, Mitiga, Waze, and Cloudinary, even before its official entry into Israel. These investments were made either directly by Blackstone or through its portfolio companies.
For instance, one of Blackstone's portfolio companies, founded by Disney veterans, acquired Faraway Road Productions, the production company of Lior Raz and Avi Issacharoff, the creators of the popular series "Fauda," for $50 million approximately a year and a half ago.
Blackstone has been in contact with various growth companies in Israel through its representatives in the country. The lack of investment since the company's establishment in Israel may be related to timing. Shortly after Blackstone began operating in Israel, the favorable conditions for investors in the country turned into a more challenging economic situation, causing uncertainty.
Many Israeli high-tech companies, which had been regarded as attractive investment opportunities during the bubble period and rapidly achieved unicorn status, became riskier investments. Due to this uncertain climate in the local industry, it remains unclear whether Blackstone will make significant investments in Israeli high-tech companies until there is clearer stability and confidence in the market.
