IVC-LeumiTech today published initial trends from the report it is preparing on investment in Israeli startups in the first half of 2022. The full report will be published in July.
On the negative side, starting November 2021, there has been a fall in investments in Israeli startups from new investors, who had not previously invested. The most outstanding trend has been a fall in the number of first investments from new investors in startup financing rounds in advanced growth stages, Series B and Series C and later - a trend which began in the summer of 2021. Here the trend has been a gradual return to first investments of the levels seen in early 2020, before the outbreak of the Covid pandemic.
On the positive side, IVC-LeumiTech found that the fall in the number of investments in Israeli startups is more moderate than the downward correction on Nasdaq, which has lost 23% since the start of 2022. Even if investors have a reduced appetite for risk in new startups, existing investors have not abandoned their existing portfolio companies and the number of follow-on investments remains relatively high.
It should be stressed that the IVC-LeumiTech analysis of trends is based on startup financing rounds that have been reported, often months after the investments were agreed, so that there is a lag before new trends are fully expressed. Discussions with Israeli investors, especially in advanced growth stage startups, have indicated a sharper fall than so far demonstrated in the figures.
Published by Globes, Israel business news - en.globes.co.il - on June 8, 2022.
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