First Investments By VC Funds In Israeli Tech Soar To 7-Year High In 2020

This article was first published by The Times of Israel and is re-posted with permission.

The number of first investments by VC funds in Israeli technology firms soared to a seven-year high in 2020, as the coronavirus pandemic pushed businesses and households online and gave the technology sector a boost.

The number of first investments — when a VC fund adds a company for the first time to its investment portfolio — totaled 620, an increase from 470 in 2019; 579 in 2018; and 439 in 2014, according to data published by IVC Research and law firm APM & Co., which have been analyzing first investments activity in Israeli tech firms since 2014.

The number of first investments by foreign VC funds was the highest in seven years, the data showed, totaling 339 deals. The number of Israeli VC first investments in 2020 was also the highest in seven years, totaling 281 deals. On average, in 2020, Israeli VC firms invested in three new companies, compared to an average of 1.6 companies per foreign fund.

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