First Q OF 2024: Israeli start-up companies raised an amount of approximately $1.6 billion

In the first quarter of 2024, Israeli start-up companies raised an amount of approximately $1.6 billion, within 105 fundraising rounds, according to new data from the high-tech report "Tech Review" compiled by Leumitech, the high-tech banking arm of Bank Leumi, and the research company IVC. The total amount of the recruitment is an increase of about 10% compared to the previous quarter. However, compared to the corresponding quarter last year, the total amount raised in the first quarter of this year is approximately 10% lower than that of 2023.
The number of funding rounds measured broke for the first time a trend of continuous decline, since the beginning of 2022, and it reflects an increase of about 34% compared to the fourth quarter of 2023. The report also found that of the total number of fundings measured, the number of fundings in early rounds (seed and round A) jumped in the current quarter to 80, which is an increase of about 48% compared to the previous quarter. Out of all the rounds, the total early rounds in the first quarter of this year stands at 77%, which is a significantly higher number compared to the average of these rounds of the total recruitments, in previous quarters.
In addition, the initial data indicate that the involvement of foreign investors increased compared to the previous quarter, and at the same time, the downward trend in the scope of participation of local investors was also broken in the first quarter of this year.
Ben Klein, CEO of IVC, stated that "after three consecutive quarters in which there were decreases in the scope and amount of capital raising by Israeli technology companies, the figures for the first quarter in 2024 are surprisingly positive." According to him, "despite the economic and political vulnerability, the analysis of the data indicates Stabilization and improvement, even if modest, in most of the financial parameters of Israeli high-tech.'
In addition, according to the initial findings, 6 huge deals, where huge deals are defined as those with a volume of over 100 million dollars each, accounted for about 47% of the total amount raised in the first quarter of this year, most of them in the cyber industry. As part of these transactions, 752 million dollars were raised in the first quarter, of which 620 million dollars were raised in cyber companies, which is 38% of the total amount raised.
The high-tech report by Leumitech and IVC reviews all the activity of the Israeli tech industry, including capital raising, mergers and acquisitions, and the activity in the public capital market. The data in the report is taken from the IVC database and the full report is expected to be published during the coming month of April.