• Tue. Oct 3rd, 2023

Startups in Israel are Thriving Due to Increased Funding Despite the Coronavirus Pandemic

May 28, 2021

As of now, plentiful cash is flowing into startups in the State of Israel and the local innovation scene is enjoying its time in the spotlight. This was reported by Startup Snapshot, which conducted a survey from more than 200 local startups and then published its report. 

The novel coronavirus pandemic has presented numerous challenges. However, the homegrown companies in the country have time and time again, proved that they are more than capable of innovating. The startups together have managed to raise an impressive amount of USD 5.37 billion as capital in the three months of 2021 combined. 

The General Manager and Vice President of Intel Ignite, Tzahi Wesifeld, stated that a substantial amount of money has come into the ecosystem in Israel in the last two years. Thus, numerous new investors have shown up, as well as new investment funds.  

Startup Snapshot is a data-sharing platform designed for the startup ecosystem in the State of Israel. Its report was put together by Y. Benjamin from its Strategic Marketing department, in partnership with Intel Ignite, Fiverr, and LeumiTech. 

The CEO of Consiglieri, who is also a partner from Yigal Arnon & Co, Nimrod Voren, added that in this year, investors are trying to be more involved in overseeing and supervising the ongoing business activities, a well as the expenses being incurred. He added that this is just an attempt to ensure that investors are protected in the uncertain conditions of the market today. 

According to Voren, everything these days is on steroids and the government is seeking to invest to make sure that it moves twice as fast as it did in the past. Weisfeld also added that due to this aim of the government, a substantial amount of money is going to be spent on the advancement of technology. 

On a daily basis, the tech ecosystem in the State of Israel is reporting high valuations, tech unicorns, as well as record funding rounds.

In this week alone, Salt Security made an announcement revealing a successful round of USD 70 million. Similarly, Wiz informed an addition of USD 120 million in its already booming coffers. Valens is all set to make its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE), starting from a value of USD 1.16 billion.  

Weisfeld also informed that the speed of closing each round, however, has been slashed in half, as compared to the 29% of local corporations closing rounds in less than two months before the coronavirus surfaced. 

The head of the business center at LeumiTech, Nurit Pirani, further added that he is thrilled to be witnessing the impact that the coronavirus has had on startups that are still in their early stages. According to him, it is true that these very startups had been disadvantaged when the pandemic first started due to the lack of capital being raised. 

However, he said, the excess of investments in the market has brought in some much-needed capital in the early rounds. At the same time, investors are looking for added protection and going for more restrictions at the time of closing deals due to the uncertain environment of the market. 

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