How a lot has Israel’s tech business been damage by the battle over the previous 12 months? It relies upon who you ask. This morning the Israel Superior Know-how Industries (IATI), which additionally represents international traders and the Israeli growth facilities of US firms, along with the RISE Israel coverage and analysis institute, arrange by Prof. Eugene Kandel, printed a pessimistic examine entitled “The State of Israeli Excessive-Tech – Within the Shadow of a Yr of Struggle.” Based on the examine there was a 6% fall in enterprise capital investments in Israeli firms and a pointy fall of about 30% within the variety of international and Israeli investments over the previous 12 months – October 2023-September 2024.
As well as, the examine discovered a development of investments concentrated in a small variety of firms, with in 2024 the ten largest investments accounting for about half of the whole investments. Of explicit concern is the determine indicating that 76% of the businesses which have raised important quantities have their headquarters outdoors of Israel. RISE Israel CEO Uri Gabai warns within the report concerning the inherent risks of the present scenario. He says, “The battle has created an ideal storm that threatens the way forward for Israeli high-tech. The report we printed reveals, on the one hand, the pliability proven by the business, but in addition notably worrying warning indicators and traits which have dramatic penalties for its future.”
The pessimistic report is in contradiction to the comparatively rosy image printed in experiences by the Israel Innovation Authority, and IVC-LeumiTech. Based on IVC-LeumiTech, investments in Israeli tech grew by 32% within the first 9 months of 2024. Whereas the IVC-LeumiTech report indicated a slight lower within the involvement of international traders, the RISE report noticed a big lower of about 30% within the variety of international and Israeli traders. The RISE report additionally factors to the focus of investments in a small variety of firms, with many of the firms which have raised important quantities positioned overseas.
As well as, RISE experiences a fall by Israel within the worldwide AI rating of Tortoise Media over the previous 12 months from seventh to ninth, after Israel was in fifth place again in 2021. As well as, the report discovered that about half of the businesses that raised seed rounds in 2022 are having problem elevating follow-on rounds.
Gabai summarized the report with suggestions for quick motion. “The Israeli authorities should current a imaginative and prescient that may give hope to traders and entrepreneurs, define a accountable financial coverage, protect democratic values and decrease worldwide isolation. So long as present traits proceed, Israeli high-tech might discover itself in actual hazard, with important injury to the nation’s economic system.”
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The spirit of Gabai’s phrases are in virtually full contradiction to the clear and ceremonial language utilized by LeumiTech CEO Maya Eisen Zafrir, who mentioned simply yesterday, “Israeli high-tech, which continues to function within the shadow of the battle, demonstrates resilience and even maintains an encouraging progress development in contrast with 2023. We’re comfortable that together with the large offers, we see a constant improve in capital elevating in the remainder of the offers, quarter after quarter, for the reason that starting of the 12 months. Approaching the anniversary of October 7, we notice how important Israel’s high-tech efficiency is, embodying the willpower and adaptability that characterize Israeli entrepreneurs.”
Printed by Globes, Israel enterprise information – en.globes.co.il – on October 1, 2024.
© Copyright of Globes Writer Itonut (1983) Ltd., 2024.
