Israeli Startups Raise $1.6B in Q3, Indicating Stabilization – Report

Israel’s high-tech companies raised $1.67 billion in the third quarter of 2023, a small drop from Q2 and almost no change from Q1, according to an upcoming report on the state of the country’s high-tech investments. 

The figures signal that the investment in Israeli startups is stabilizing after a volatile period, the report shows. 

The annual Israeli Tech Review, which provides a comprehensive analysis of the state of the country’s high-tech industry, shows that the funds raised from Q3 saw a decrease of just 14 percent compared to Q2. 

Additionally, the volume of transactions raised by foreign investors was higher in Q3 than in Q1, which further supports the trend for the stabilization of investments in Israeli startups. 

The report also saw another positive trend in the amount of seed capital raised for fledgling startups, which rose for the first time in Q3 after five consecutive quarters of decline. 

“We continue to see in the 3rd quarter’s data the first signs of stabilization in the amount and scope of capital raising, which bring us to the levels of 2018-19,” said LeumiTech CEO, Maya Eisen-Zafrir.

“In addition, we recognize a stabilization in the rate of follow-on investments, an indication that the companies are beginning to adjust their value to the new interest rate environment,” she said. 

The Israeli Tech Review is published by the IVC, Israel’s largest research center of high-tech and venture capital, and by LeumiTech, the arm of Leumi Group that specializes in banking for high-tech companies and VC Funds.

The full report will be published in October.