Israeli startups raised 'only' $750m in April

Dollars Cedit: Shutterstock

Only one startup raised $100 million or more last month compared with six in March 2021.

Israeli startups raised 'only' $750 million in April 2022, according to press releases seen by "Globes." The figure may be more as some companies prefer to remain in stealth and sometimes do not publicize the investments they have received.

Israeli privately-held tech companies raised a record $25.6 billion in 2021, according to IVC, more than double 2020's figure of $10 billion, which was itself a record. Israeli startups raised $5.6 billion in the first quarter of 2022, according to IVC, slightly off pace to exceed last year's record.

But April's figure of about $750 million is alarmingly below the more than $2 billion average over the past year, even taking into account the Passover holiday, which significantly reduced the number of business days last month.

It is too early to tell if this is a downward trend, but many people in the tech sector have been forecasting that the sharp falls in share prices of tech companies on the stock market would sooner or later lower the amount of money raised and valuations of startup growth companies. Most conspicuously very few companies raised large amounts of money in April. Only one company raised $100 million or more last month compared with six in March 2021 and only four companies raised more than $50 million last month compared with 12 in March.

In April, the major financing rounds that were completed were led by AI disease detection company Viz.ai, which raised $100 million. Cybersecurity company Coro raised $80 million, blockchain company bloXroute raised $70 million and cybersecurity company Silverfort raised $65 million.

Published by Globes, Israel business news - en.globes.co.il - on May 1, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Dollars Cedit: Shutterstock
Dollars Cedit: Shutterstock
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