Investments in Israeli tech down 30% in first three quarters of 2022
Investments in Israeli tech down 30% in first three quarters of 2022
In the first nine months of the year, Israeli tech companies raised $12.3 billion, 30% less than in the first three quarters of last year, but still the second-largest amount ever in this period
After a record-breaking 2021, the decline in funding by high-tech companies in Israel this year continued in the third quarter of 2022, with investment rounds of over $50 million falling by 70% year-on-year. While there were 74 such deals in the third quarter of 2021, totaling over $4 billion, in the third quarter of this year, there were only 15 such deals, reaching a total of $1.3 billion.
Mega-deals of over $100 million have also declined significantly, with only three such deals taking place in the third quarter of 2022, compared to 14 in the same quarter last year, according to IVC and LeumiTech’s Israeli Tech Review report for Q3.
Overall, in the first three quarters of 2022, $12.3 billion was raised in 538 deals, 30% less than in the same period last year, but still the second-largest amount ever in this period.
Only one new unicorn joined this group during Q3, following 20 companies in the first half of 2022. In total, companies valued at over $1 billion raised $470 million in six rounds during Q3, back to the levels in 2018–2019.
According to Timor Arbel-Sadras, CEO of LeumiTech: "The quarterly report indicates that reality has yet to be stabilized and we are still working under great uncertainty. Not enough valuations have been set in recent financing rounds to determine how valuations have changed since the 2021 rounds, and it would be interesting to see if the "multiplier shift" develops into a real economic shift reflected in the financial results of the companies. Such a crisis may occur in case of a deep recession and also due to execution challenges in the current market conditions.”
