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Preliminary data showed that Israeli startups in the high-tech sector raised $1.5 billion in the last quarter of 2023, a decrease of 15% from the third quarter, the lowest level in five years, indicating that the high-tech sector in Israel was affected by the war it is waging. Israel in Gaza.
A Reuters report, citing the Israeli Venture Capital Research Center (IVC) and the LeumiTech Foundation, stated that fundraising for investment in emerging technology companies decreased in the fourth quarter (as of December 26) by 15% from the third quarter.
The report said that a group of 70 American technology executives came last week to Israel to show support, especially with at least 15% of the technology workforce being called up for military reserve service.
High technology accounts for 12% of jobs, more than half of Israel’s exports, 25% of income taxes, and nearly a fifth of total economic output.
Overall, Israeli startups raised about $7 billion in 2023, compared to nearly $16 billion in 2022.
In addition to reduced funding due to the war and economic problems, foreign investors were spooked by Israel’s plan to reform its judicial system, a proposal that has since been shelved.
In an attempt to mitigate the blow of the significant decline in the flow of funds, the CEO of the Israeli market research company Lumitec, Mia Eisen Zaffrir, said that the year 2023 reflects a return to the levels of investment and volume of activity in 2018 and 2019 after the raising of technical funds in Israeli startups reached $26 billion. In 2021 in 779 innings.
The CEO of the Israeli market research company IVC, Ben Klein, said that the year 2023 represents a challenge for the Israeli economy and advanced technology.
