IVC-LeumiTech: Tech fund raising up 38% in 2024

Tech investment illustration: Tal Bogdanovsky
Tech investment illustration: Tal Bogdanovsky

The report is generally optimistic although the number of Israeli investors in tech companies has reached a low for recent years.

Israeli privately-held tech companies raised $9.58 billion in 2024, up 38% from 2023, IVC-LeumiTech reports. The report is generally optimistic despite a 4% fall in fund raising in the fourth quarter of 2024 from the preceding quarter although the amount raised was 60% higher than the corresponding quarter of 2023, when the war broke out.

However, it should be noted that the IVC-LeumiTech figures include former OpenAI executive Ilya Sutskever's Safe SuperIntelligence (SSI), which is a US company that opened an Israeli subsidiary, but as far as is known does not yet have any Israeli employees. Without the $1 billion that SSI raised, Israeli startups raised $8.58 billion, still a very high figure by historical standards except for the peak years of 2020-2022.

Israeli investment reaches a low point

But while investment figures in Israeli tech have stabilized almost 15 months after the outbreak of the war, IVC-LeumiTech's 2024 report reveals the worrying trend that the number of Israeli investors in local tech companies has reached a low for recent years. In the fourth quarter of 2024, only 159 Israeli venture capital funds and institutional entities were partners in investments in Israeli startups and growth companies. According to the report, there was a rise in the number of Israeli investors in early 2024 compared with the quarter in which the war broke out, and the number of investors reached 229, but gradually decreased towards the end of the year, and now stands at a number even lower than in the months after October 7.

In the boom times of early 2022, the number of Israeli funds and institutional investors was 548, but even in periods considered less bubble-like and calmer, such as the fourth quarter of 2018 and 2019, there were 240 and 280 investors in tech companies. Overall, there was a slight recovery in the number of investors in Israeli tech, due to a stabilization in the number of foreign investors and their numbers rose from 257 in the third quarter of 2024 to 266 in the fourth quarter. These are levels that were last recorded only in the second half of 2018.

Another low was also recorded in the number of new investors - that is, investors for whom 2024 is their first year of investment in Israeli tech. After 726 such investors were recorded in 2023, in the analysis of this year's investment rounds, only 422 new investors were seen. However, the report's authors admit that there is no certainty that this is the final number, and it is estimated that only later next year will additional unreported fundraising rounds be counted, so that it will be possible to reach a new number of investors, ranging from 700 to 750, compared with about 800 in all of 2023.

Mega-rounds back on the rise

IVC-LeumiTech reports a return to a higher number of mega financing rounds of $100 million or more, which represented 48% of all the money raised in 2024 - the highest such figure since 2021, which saw a huge number of such rounds by unicorns. The amount of money raised by cybersecurity companies was 38% of all the money raised - a record high percentage - with Wiz raising $1 billion and Cyera raising $300 million.

Published by Globes, Israel business news - en.globes.co.il - on December 30, 2024

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024

Tech investment illustration: Tal Bogdanovsky
Tech investment illustration: Tal Bogdanovsky
Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

APM merges with lawyers from Doron, Tikotzky Kantor, Gutman credit: Eyal Merilos APM merges with 12 lawyers from Doron, Tikotzky Kantor, Gutman

With the addition of these 12 lawyers, Amit Pollak Matalon & Co. will now have 135 lawyers.

US President Donald Trump credit: Reuters Sipa USA Israel on list as Trump unveils tariffs

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

Deflated unicorn credit: Shutterstock Big Tech 50 reports more huge falls in startup valuations

Israeli R&D partnership Big Tech 50 reports that an investment of $2 million in Orcam made in 2021, shrank to just $31,000 at the end of 2024.

NextFerm technologies based on yeast credit: NextFerm Food-tech co NextFerm suspends operations

The company, which produces food ingredients in yeast without genetic engineering, cannot pay its debts and is seeking a buyer.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef OECD sees recovery in growth but high inflation

The OECD Israel Economic Survey 2025 recommends that the Israeli government take several restraining measures, in order to exit the economic storm created by the war.

Dano Ben-Hur credit: Dror Sithakol Statisticians contradict BoI on impact of housing finance deals

The Central Bureau of Statistics insists the impact of 20/80 buy now pay later financing deals on the real estate market and housing prices is minimal.

Governor of the Bank of Israel Amir Yaron  credit: Government Press Office Debt fears top Bank of Israel's concerns

Most unusually, Governor of the Bank of Israel Amir Yaron's press conference last week did not focus on inflation and the impending interest rate decision.

US President Donald Trump  credit: Reuters/Leah Millis Israel moves to avoid Trump's tariffs axe

Minister of Finance Bezalel Smotrich has signed an order canceling all tariffs on imports from the US. The impact will mostly be on agricultural produce.

Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018