SNC: Israeli startups raised record $1.44b in January

Startup

The record amount included six startups that completed mega-rounds of more than $100 million last month, Start-Up Nation Central reports.

Analysis by Israeli NGO Start-Up Nation Central (SNC) has found that January 2021 saw investments of $1.44 billion in Israeli startups, a record amount raised during a single month, beating the $1.2 billion raised in September 2020.

SNC reports that six startups raised more than $100 million each (mega rounds) during the month, the highest number of mega-rounds for a single month, amounting to 73% of the record-breaking total. These six mega-rounds in January 2021 alone were almost 30% of the 21 mega-rounds in all of 2020 (21 total).

The six mega-rounds were: Global payment network developer Rapyd raised $300 million, cloud native software network developer DriveNets raised $208 million, automatic cloud backup company OwnBackup raised $167.5 million, telemedicine app K Health raised $132 million, Ecommerce company Resident raised $130 million and B2B payments company Melio raised $110 million.

Fintech was the dominant sector during January with two ‘mega-rounds’ and $413 million raised (29% of the total fundraising in January).

SNC director of research Meir Valman said, "The record level of fundraising in recent months is driven by two effects. One is the increasing maturity of the Israeli tech ecosystem, when rapidly growing startups are able to raise much larger rounds. The other is the effect of Covid-19 on Israeli companies, which pivoted rapidly to address the challenges of the pandemic, but they will also stay relevant long after it is gone."

Published by Globes, Israel business news - en.globes.co.il - on February 11, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

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