Preliminary data released on Tuesday by the IVC Research Center and LeumiTech indicates that Israeli high-tech firms secured a total of $1.7 billion in the third quarter of this year, showcasing signs of stabilization in startup investments.
The reported amount for the third quarter represents a 38 percent decline compared to the same period in 2022. However, it’s only 14 percent lower than the funding secured in the second quarter of this year.
The IVC Research Center and LeumiTech report highlighted that comprehensive quarterly data will be officially released in October.
Israeli tech companies have cumulatively raised $5.3 billion in funding throughout this year, with $1.9 billion secured in the second quarter. In 2022, the total funding for tech firms amounted to nearly $16 billion, with a majority of the funds being raised in the first half of the year before the onset of the global economic slowdown, higher interest rates, and weak stock markets.
The Israeli government’s ongoing plan to overhaul the country’s judiciary has impacted fundraising, causing investor caution and concerns regarding the nation’s democratic health.
LeumiTech CEO Maya Eisen Zafrir stated, “We continue to see in the third quarter data the first signs of stabilization in the amount and scope of fundraising, data that bring us back to the levels of 2018-19. In addition, we recognize a stabilization in the rate of follow-on investments, an indication that the companies are beginning to adjust their value to the new interest rate environment.”