Israeli tech companies raised $1.78 billion in the second quarter of 2023, down 65% from the second quarter of 2022, IVC-LeumiTech reports. IVC-LeumiTech reports that the money in the second quarter of 2023 was raised in just 100 deals, 48% lower than in the second quarter of 2022.
However, the amount raised in the second quarter of 2023 was 2% higher than the $1.75 billion raised by tech companies in the first quarter of 2023 - the first time in six consecutive quarters that the downward trend has been halted.
The report also mentions the scarcity of very large financing rounds with very few financing rounds above $100 million. The exception in the second quarter was Upstream Bio, which raised $200 million.
Despite the general downward trend, the data indicate that investments in Israeli tech companies has not completely stopped, and there are still smaller-scale transactions taking place.
LeumiTech CEO Timor Arbel-Sadras said, "We continue to see a decrease in the annual level of financing rounds, both in amounts and in the number of companies raising money. At the same time, we see initial signs of a stabilization in the rate of funds raised thanks to follow-on investments compared with a halt in first investments. It will be interesting to see how the coming months will develop. It will also be interesting to see how the companies will adjust financing rounds to the spirit of the times and the new economic environment we are in so that new transactions and purchases in the market will be possible."
Published by Globes, Israel business news - en.globes.co.il - on June 28, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.