Report: Sharp Drop In Investment In Israeli Life Science Companies

Israeli life science companies raised $2.2 billion in 2023, a 40 percent drop on the year before, according to a new report by Israel Advanced Technology Industries (IATI), an umbrella organization of the country’s high-tech, life science and other advanced technology industries. 

The annual report, which was conducted in association with international accounting firm PwC and the Israel Innovation Authority, found that Israel’s war with Hamas in Gaza has had a negative impact on funding for the life science sector. Just $145 million was invested in the sector in Q4 of last year, compared to $305 million in Q1, $810 million in Q2 and $475 million in Q3.

Nonetheless, an IATI survey found that 59 percent of local venture capitalists did not believe the war would influence their decisions on where to invest this year, while 62 percent said they would invest at least half of their 2024 funds in Israeli companies.  

The IATA report was unveiled at its annual conference in Tel Aviv. 

“The recent challenging environment has undoubtedly challenged the life science and health technology industries but has simultaneously introduced new opportunities for innovation and growth,” said Karin Mayer Rubinstein, president and CEO of IATI. 

“Today, more than ever, it is a strong testament to the incredible resilience, unity and determination the sector has to continue operating, creating and delivering important solutions during this time. Our latest research shines a light on the challenges life sciences companies in Israel are facing while illustrating the importance of continuing support and investment to ensure continuity.”