As the calendar year comes to a close, year-end reports provide a comprehensive look at market performance across various sectors. Last week, we shared the 2023 foreign investment report, which highlighted growth despite the events of October 7. Today (Sunday), the IVC-LeumiTech report was published, summarizing Israeli startups’ capital-raising activities for 2024. The report offers insights into growth trends and the evolving tech landscape. According to the findings, Israeli startups saw a 38% rise in capital raised compared to 2023, totaling $9.58 billion.
A 60% Surge in Q4
The report highlights a notable 60% jump in Q4 fundraising compared to the same period in 2023, the first quarter of the war. This increase is attributed in part to a 44% rise in the number of deals between the quarters.
While the report paints an overall positive picture, it also echoes a trend reported last week by the RISE Institute: capital raising is concentrated among a smaller number of startups, sectors, and investors. According to IVC-LeumiTech, large-scale fundraising rounds of $100 million or more accounted for nearly half of all capital raised by Israeli startups. Even without factoring in the largest deals—such as Wiz’s $1 billion round and Siara’s $600 million round—growth was still evident compared to last year.
Cybersecurity Leads the Way
The report underscores cybersecurity’s status as the strongest sector in Israel’s tech ecosystem, attracting about 40% of all capital raised this year. In Q4 alone, 22 cybersecurity deals amounted to $850 million, representing 36% of the total funds raised during the quarter. Overall, cybersecurity accounted for approximately 48% of total investments—a significant rise from previous years.
Notable Highlights and Data
The report also includes figures from Safe Super Intelligence, founded by entrepreneur Ilya Sotskover. While the company has operations in Israel, it is classified as an American entity. Its $1 billion fundraising round represents over 10% of the total funds raised this year, influencing the report’s aggregate data.
This remarkable growth in Israeli high-tech reflects the resilience and innovation of the country’s startup ecosystem, even in the face of challenging circumstances. Cybersecurity continues to drive Israel’s success, maintaining its reputation as a global leader in technology and innovation.
