TLDR:
– Israeli venture capital fundraising down 74% in 2023
– Just 21 Israeli venture funds raised funds last year, versus 62 funds for $5.9 billion in 2022
In 2023, Israeli venture capital funds raised just $1.5 billion, marking a significant 74% decrease from 2022 and the lowest level since 2015. The decrease in fundraising was attributed to a tough year for Israel’s tech sector due to a global economic slowdown and investor concerns over governmental changes and ongoing conflict in the region. The Israel Innovation Authority, the IVC Research Center, law firm Gornitzky GNY, and consultancy KPMG Israel jointly reported that only 21 Israeli venture funds secured funding in 2023, compared to 62 funds raising $5.9 billion in the previous year. The top 24 largest funds in Israel have a combined $29 billion under management, with three VC funds accounting for 51% of the total capital raised.
Key players in the Israeli tech sector emphasized the importance of providing incentives to entrepreneurs to encourage them to stay in Israel and continue driving innovation in the region. Dina Pasca Raz, partner and head of technology at KPMG Israel, highlighted the need to prevent an exodus of innovation by offering compelling incentives to entrepreneurs. Dror Bin, CEO of the Israel Innovation Authority, mentioned that the authority injected 400 million shekels into companies with significant business and technological assets to support them.
Overall, the report underlines the challenges faced by the Israeli tech sector in fundraising in 2023 and the importance of creating a supportive ecosystem for innovation and entrepreneurship in the region.
