Tech TLVLeumiTech CEO: "Israeli innovation is irreplaceable, and we are here to ensure it remains so"
Tech TLV
LeumiTech CEO: "Israeli innovation is irreplaceable, and we are here to ensure it remains so"
Maya Eisen Zafrir, CEO of LeumiTech, spoke at the opening of the Tech TLV conference about the new story of Israeli high-tech. "This story will feature chapters on innovation and breakthroughs born out of immense difficulty, a chapter on technological acceleration unmatched by any other global tech hub."
"A year ago, we talked about the strengths and resilience of Israeli high-tech and projected optimism, but we didn’t fully grasp the magnitude of the challenges still ahead," said Maya Eisen Zafrir, CEO of LeumiTech, speaking on Tuesday at the Tech TLV conference, hosted by Calcalist and LeumiTech. "Who would have believed that a year later, we would still be at war, anxiously awaiting the safe return of everyone home."
"We at LeumiTech closely follow the Israeli high-tech industry and recognize the signs of the times. Our ecosystem is undergoing significant upheaval, with constant changes. Dramatic shifts in the global tech investment landscape, coupled with major social and internal challenges and a prolonged war, could have been expected to result in a retreat or even contraction of the engine driving the Israeli economy. However, while monitoring the situation, we have also seen reassuring signs of resilience and the unique qualities that define Israeli high-tech."
Eisen Zafrir highlighted the encouraging data from LeumiTech’s annual report, prepared in collaboration with IVC. "Israeli high-tech grew in 2024. We observed a nearly 40% increase in fundraising volumes compared to the previous year, with $9.55 billion raised in 2024 and a projected increase in the number of funding rounds."
The report also revealed that 2024 was "a record year for mergers and acquisitions, with more Israeli companies taking roles as acquirers. There were 116 exit transactions – including IPOs, mergers, acquisitions, and buyouts – with a cumulative value exceeding $17 billion, reflecting significant growth compared to 2023."
"However," Eisen Zafrir cautioned, "the data also highlights areas requiring attention. We see the continued dominance of the cybersecurity sector, but we are concerned about the declining number of new companies being established and the challenges faced by companies in later funding rounds, particularly those still relying on inflated valuations from the 2021–2022 bubble."
Beyond the numbers, Eisen Zafrir reflected on the new chapter of Israeli high-tech being written today. "This story will feature chapters on innovation and breakthroughs born out of immense difficulty, a chapter on technological acceleration unmatched by any other global tech hub, and a chapter on solutions developed from the urgent need to protect both the home front and the battlefield – solutions that are quickly translated into civilian applications. There will also be a chapter on new work methods emerging almost overnight, as senior managers are called to reserves or teams are evacuated or redeployed. It’s a story of determination and an organizational culture driven by the belief that everything is possible – a quality unique to Israel."
Eisen Zafrir emphasized the strength of Israel's tech ecosystem. "Our ecosystem is a powerful X-factor. It comprises hundreds of thousands of startups, companies, entrepreneurs, employees, investors, funds, accelerators, and incubators – the densest concentration of talent and audacity in the world. The Israeli ecosystem is greater than the sum of its parts, and it is the comparative advantage that allows Israeli entrepreneurs and companies to adapt, reinvent themselves, and maintain leadership across almost every sector they engage in."
"As the leading bank in Israeli tech, we are proud to be part of this ecosystem. We challenge ourselves daily to be innovative, creative, and to offer real solutions. That’s why, following the announcement by Hanan Friedman, CEO of Leumi, of a $77 million fund, we’ve been collaborating with the brightest minds and leading investors in the market to define how LeumiTech can play a more active role in investment activities.
"We plan to offer credit through an innovative model integrated into investment rounds, totaling $77 million over the coming year. This model combines credit and equity, and it reflects the joint journey we’re undertaking alongside leading industry funds, companies, and startups. Through this fund, we aim to participate in investment activities amounting to hundreds of millions of dollars, diversifying funding sources for startups."
Eisen Zafrir concluded: "Our shared mission is to distill the magic of the Israeli ecosystem, identify its sources, and expand its impact. Israeli innovation is irreplaceable, and we are here to ensure it remains so, as we write the next chapter of Israeli high-tech together."
