Knowledge (XXG)

Venture capital in Israel

Source 📝

103:
of their efforts, Israel's annual venture capital outlays rose nearly 60-fold, from $ 58 million to $ 3.3 billion, between 1991 and 2000. The number of companies launched using Israeli venture funds rose from 100 to 800. Israel's information technology revenues rose from $ 1.6 billion to $ 12.5 billion. By 1999, Israel ranked second only to the United States in invested private equity capital as a share of GDP. It also led the world in the share of its growth attributable to high-tech ventures: 70 percent. According to the
198:, reaching a value of $ 1.5 billion in 2014. Since then the rate of new Israeli unicorns has risen exponentially. From 2014 to 2018, the total number of new unicorns was 19 combined; 2019 had 12 new unicorns, and in 2020 a total of 14, whereas in 2021, there were an astonishing number of 28 companies, including Wiz, K-health, Verbit, 561: 102:
The success of the venture capital industry in Israel continued with Yozma (Hebrew for "initiative"), a government initiative in 1993 offering attractive tax incentives to foreign venture capital investments in Israel and promising to double any investment with funds from the government. As a result
190:
Venture capitalist Aileen Lee coined the term "unicorn" in 2013 to define a privately held startup valued at $ 1 billion or more. It was initially used to portray the rarity of such companies. As of 2021, over 70 unicorns exist in Israel or were founded by Israelis – making Israel the number one
126:
In 2019, Israeli companies were considered more popular than their American peers. For comparison, investment volume in Israeli startups grew by 140% from 2014 to 2018. Investments in technological startups from the U.S. grew by 64%. Moreover, Israeli startups are becoming so attractive that US
95:, the past Chief of Staff of the Israel Air Force; Dr. Gideon Tolkowsky; and Frederick R. Adler, a pillar of the US venture capital industry who had conceived the notion of taking Israeli High-tech companies public on NASDAQ. Subsequently, in 1990, Gideon Tolkowsky and 75:
According to a report from Start-Up Nation Central (SNC), the three largest earning sectors in Israel were Enterprise IT & Data Infrastructure (which raised just under $ 6b), Cybersecurity-dominated Security Technologies ($ 5.9b), and Fintech ($ 4.2b).
122:
in the Israeli market worth a total of $ 2.54 billion; 7% below 2008 levels ($ 2.74 billion), when 82 Israeli companies were merged or acquired, and 33% lower than 2007 proceeds ($ 3.79 billion) when 87 Israeli companies were merged or acquired.
260:
In 2007, incubator companies raised $ 435 million in private funds, up 74 percent from 2006. Currently, the OCS allocates approximately $ 1 billion per year to incubators and other programs that encourage technology development
342: 387: 151:
Israel's venture capital industry has about 276 active venture capital funds, of which 71 are international VCs with Israeli offices. Additionally, there are some 220 international funds, including
72:) totaled $ 22.2 billion from 238 deals. Excluding deals over $ 5 billion, 2021 capital saw almost 50% from IPOs, while the number of M&As did not fall short compared to previous years. 127:
companies tend to acquire them more than anyone else: they account for half of all transactions in 2018. Thus, Israel eventually became a "net seller". In particular,
280: 580: 241:
program (Hebrew: חממה טכנולוגית) to leverage the strengths of approximately 750,000 scientists, engineers, and physicians who had just arrived from the former
411: 41:
industry was born in the mid-1980s and has rapidly developed. Israel currently has more than 276 active venture capital funds, of which 71 are international
773: 677: 99:
founded Israel's second VC firm, "Veritas Venture Capital Management", whose main investors were Anglo American Corporation of South Africa and De Beers.
285: 1041: 1051: 825: 246: 257:. Today, there are 24 such incubators located throughout Israel, and 65 percent of the projects are science-related research and development. 1015: 92: 492: 739: 863: 626: 275: 938: 851: 766: 91:
industry was born in 1985, when the first Israeli venture capital fund, Athena Venture Partners, was founded by Major-General
79:
According to IVC, In 2021, venture capital investment in Israel stood at $ 25.6 billion – a leap of almost 150% from 2020.
820: 115: 419: 1010: 963: 250: 131:(AI) raises the most investments (17%) among all high technologies in Israel. The recent acquisition of Israeli company 995: 584: 205:
As a result, more foreign venture capital funds are currently invested in Israeli or Israeli-led unicorns, including
1036: 880: 759: 388:"2021 was the Best Ever Year for Israeli Tech: $ 25 Billion Raised and a Record Number of Unicorns and Mega Rounds" 873: 1046: 890: 152: 140: 119: 108: 61: 701: 1000: 973: 128: 69: 315: 910: 905: 846: 830: 226: 132: 360: 933: 813: 163:, that do not have branches in Israel but actively invest in Israel through an in-house specialist. 958: 900: 798: 206: 49:
industry plays an important role in the booming high-tech sector that has been given the nickname "
953: 948: 943: 803: 238: 46: 734: 253:, started six incubators designed to foster seed and early-stage technology development through 719: 534: 114:
Though Israel's venture capital industry played an important role in the high-tech sector, the
917: 885: 868: 790: 782: 270: 160: 23: 895: 651: 254: 218: 27: 565: 291: 214: 88: 42: 38: 30: 678:"Nvidia is buying Mellanox Technologies in a $ 6.9 billion deal (NVDA) | Markets Insider" 170:
Sector led the market with $ 272 million or 24% of total capital raised, followed by the
1005: 199: 175: 156: 96: 54: 1030: 365: 222: 210: 167: 605: 968: 858: 808: 50: 118:
also affected the availability of venture capital locally. In 2009, there were 63
456: 195: 53:", considered second in importance only to its Californian counterpart, the 60:
According to the Israeli Research Center, IVC, Israeli tech exits in 2021 (
481: 441: 652:"Startup M&A worldwide: a $ 1.2 trillion market led by US and Europe" 179: 171: 978: 983: 505: 136: 65: 34: 751: 745: 237:
In the early 1990s, the Israeli government created a technological
627:"Through the Thorns to the Stars: Israeli Startups Ecosystem 2019" 562:
OECD Factbook 2010: Economic, Environmental and Social Statistics
242: 104: 755: 535:"Silicon Israel — How market capitalism saved the Jewish state" 202:
and Honey Book, a 200% increase compared to the previous year.
107:, Israel is also ranked first in the world in expenditure on 191:
country in the world in its number of unicorns per capita.
139:
is indicative. It was a definite contender for the largest
606:"Start-Up Nation Central's Annual Ecosystem 2019 Report" 442:"The Past, Present, and Future of Israeli Innovation" 194:
The first Israeli company to be named a unicorn was
26:
provided to early-stage, high-potential, high risk,
926: 839: 789: 45:with Israeli offices. Israel's venture capital and 281:List of Israeli companies listed on the Nasdaq 221:and corporate venture capital funds including 767: 8: 735:Directory of venture capital funds in Israel 182:sector with 13% of capital raised in 2009. 774: 760: 752: 286:List of Israeli inventions and discoveries 178:sector with $ 219 million or 20%, and the 528: 526: 309: 307: 722:, The Jewish Policy Center, Summer 2008 621: 619: 303: 174:Sector with $ 258 million or 23%, the 575: 573: 343:"IVC-MEITAR ISRAELI TECH REVIEW 2021" 7: 337: 335: 111:(R&D) as a percentage of GDP. 14: 233:Technological business incubators 1042:Science and technology in Israel 276:Science and technology in Israel 1052:Venture capital firms of Israel 939:Free trade agreements of Israel 314:Cardumen Capital (2020-08-26). 1: 746:Full list of Israeli unicorns 116:financial crisis of 2007-2010 16:Aspect of the Israeli economy 361:"Land of milk and start-ups" 826:Economic Stabilization Plan 682:markets.businessinsider.com 656:startupeuropepartnership.eu 581:"Venture Capital in Israel" 564:Archived 2011-05-11 at the 418:. Bloomberg. Archived from 1068: 316:"Israel Funding Ecosystem" 740:Venture capital in Israel 539:City Journal -Summer 2009 249:(OCS), a division of the 245:. Israel's Office of the 20:Venture capital in Israel 461:Israel Air Force History 153:Polaris Venture Partners 120:mergers and acquisitions 109:Research and Development 720:Israel's High-Tech Boom 702:"Israel's Top Unicorns" 610:Start-Up Nation Central 392:Start-Up Nation Central 129:artificial intelligence 1006:Central Bank of Israel 416:Bloomberg Businessweek 831:Trajtenberg Committee 347:IVC Data and Insights 135:for $ 6.9 billion by 934:Corruption in Israel 748:in Tech Aviv Project 964:Ministry of Finance 504:Tolkowsky, Gideon. 251:Ministry of Economy 207:Andreessen Horowitz 1011:Standard of living 949:Old Israeli shekel 944:Israeli new shekel 493:Frederick R. Adler 239:business incubator 229:(M12) and others. 227:Microsoft Ventures 137:Nvidia Corporation 1037:Finance in Israel 1024: 1023: 821:Bank stock crisis 783:Economy of Israel 708:. April 11, 2021. 676:Jonathan Garber. 422:on April 10, 2013 271:Economy of Israel 161:Greylock Partners 31:startup companies 24:financial capital 1059: 776: 769: 762: 753: 723: 716: 710: 709: 698: 692: 691: 689: 688: 673: 667: 666: 664: 663: 648: 642: 641: 639: 638: 623: 614: 613: 602: 596: 595: 593: 592: 583:. Archived from 577: 568: 559: 553: 552: 551: 550: 533:Gilder, George, 530: 521: 520: 518: 516: 501: 495: 490: 484: 482:Gideon Tolkowsky 479: 473: 472: 470: 468: 453: 447: 445: 438: 432: 431: 429: 427: 408: 402: 401: 399: 398: 384: 378: 377: 375: 374: 357: 351: 350: 339: 330: 329: 327: 326: 311: 255:entrepreneurship 219:Insight Partners 186:The unicorns era 147:Characterization 37:. The country's 1067: 1066: 1062: 1061: 1060: 1058: 1057: 1056: 1047:Venture capital 1027: 1026: 1025: 1020: 991:Venture capital 922: 835: 785: 780: 731: 726: 717: 713: 706:Secret Tel Aviv 700: 699: 695: 686: 684: 675: 674: 670: 661: 659: 650: 649: 645: 636: 634: 625: 624: 617: 604: 603: 599: 590: 588: 579: 578: 571: 566:Wayback Machine 560: 556: 548: 546: 532: 531: 524: 514: 512: 503: 502: 498: 491: 487: 480: 476: 466: 464: 457:"Dan Tolkowsky" 455: 454: 450: 440: 439: 435: 425: 423: 410: 409: 405: 396: 394: 386: 385: 381: 372: 370: 359: 358: 354: 341: 340: 333: 324: 322: 313: 312: 305: 301: 292:Start-up Nation 267: 247:Chief Scientist 235: 215:Vertex Ventures 188: 149: 89:venture capital 85: 39:venture capital 17: 12: 11: 5: 1065: 1063: 1055: 1054: 1049: 1044: 1039: 1029: 1028: 1022: 1021: 1019: 1018: 1013: 1008: 1003: 1001:Stock exchange 998: 993: 988: 987: 986: 981: 971: 966: 961: 959:Infrastructure 956: 951: 946: 941: 936: 930: 928: 924: 923: 921: 920: 915: 914: 913: 908: 903: 893: 891:Communications 888: 883: 878: 877: 876: 866: 861: 856: 855: 854: 843: 841: 837: 836: 834: 833: 828: 823: 818: 817: 816: 811: 801: 795: 793: 787: 786: 781: 779: 778: 771: 764: 756: 750: 749: 743: 737: 730: 729:External links 727: 725: 724: 711: 693: 668: 643: 615: 597: 569: 554: 522: 496: 485: 474: 448: 433: 403: 379: 352: 331: 302: 300: 297: 296: 295: 288: 283: 278: 273: 266: 263: 234: 231: 187: 184: 176:Communications 166:In 2009, the 157:Accel Partners 148: 145: 143:deal in 2019. 97:Yadin Kaufmann 84: 81: 55:Silicon Valley 22:refers to the 15: 13: 10: 9: 6: 4: 3: 2: 1064: 1053: 1050: 1048: 1045: 1043: 1040: 1038: 1035: 1034: 1032: 1017: 1014: 1012: 1009: 1007: 1004: 1002: 999: 997: 994: 992: 989: 985: 982: 980: 977: 976: 975: 974:Privatization 972: 970: 967: 965: 962: 960: 957: 955: 952: 950: 947: 945: 942: 940: 937: 935: 932: 931: 929: 925: 919: 916: 912: 909: 907: 904: 902: 899: 898: 897: 894: 892: 889: 887: 884: 882: 879: 875: 872: 871: 870: 867: 865: 862: 860: 857: 853: 850: 849: 848: 845: 844: 842: 838: 832: 829: 827: 824: 822: 819: 815: 812: 810: 807: 806: 805: 802: 800: 797: 796: 794: 792: 788: 784: 777: 772: 770: 765: 763: 758: 757: 754: 747: 744: 742:at MFA.gov.il 741: 738: 736: 733: 732: 728: 721: 715: 712: 707: 703: 697: 694: 683: 679: 672: 669: 657: 653: 647: 644: 632: 628: 622: 620: 616: 611: 607: 601: 598: 587:on 2006-02-18 586: 582: 576: 574: 570: 567: 563: 558: 555: 544: 540: 536: 529: 527: 523: 511: 507: 500: 497: 494: 489: 486: 483: 478: 475: 462: 458: 452: 449: 443: 437: 434: 421: 417: 413: 407: 404: 393: 389: 383: 380: 368: 367: 366:The Economist 362: 356: 353: 348: 344: 338: 336: 332: 321: 317: 310: 308: 304: 298: 294: 293: 289: 287: 284: 282: 279: 277: 274: 272: 269: 268: 264: 262: 258: 256: 252: 248: 244: 240: 232: 230: 228: 224: 223:Intel Capital 220: 216: 212: 211:Spark Capital 208: 203: 201: 197: 192: 185: 183: 181: 177: 173: 169: 168:Life Sciences 164: 162: 158: 154: 146: 144: 142: 138: 134: 130: 124: 121: 117: 112: 110: 106: 100: 98: 94: 93:Dan Tolkowsky 90: 82: 80: 77: 73: 71: 67: 63: 58: 56: 52: 48: 44: 40: 36: 32: 29: 25: 21: 1016:Water supply 990: 969:Silicon Wadi 714: 705: 696: 685:. Retrieved 681: 671: 660:. Retrieved 658:. 2018-09-12 655: 646: 635:. Retrieved 633:. 2019-07-08 630: 609: 600: 589:. Retrieved 585:the original 557: 547:, retrieved 542: 538: 513:. Retrieved 509: 499: 488: 477: 465:. Retrieved 460: 451: 446:Shlomo Klahr 436: 424:. Retrieved 420:the original 415: 406: 395:. Retrieved 391: 382: 371:, retrieved 369:, 2008-03-19 364: 355: 346: 323:. Retrieved 319: 290: 259: 236: 204: 193: 189: 165: 150: 125: 113: 101: 86: 78: 74: 59: 51:Silicon Wadi 19: 18: 911:Natural gas 906:Solar power 847:Agriculture 814:Antisemitic 1031:Categories 864:Technology 687:2019-10-05 662:2019-10-05 637:2019-10-05 591:2010-11-18 549:2009-11-11 510:Veritas VC 397:2022-01-11 373:2008-03-22 325:2022-01-11 299:References 196:ironSource 996:Companies 979:Kibbutzim 901:Oil shale 799:Austerity 631:8allocate 506:"Veritas" 87:Israel's 47:incubator 33:based in 984:Moshavim 954:Taxation 881:Diamonds 852:Research 804:Boycotts 515:11 March 467:11 March 426:11 March 412:"Athena" 265:See also 180:Internet 172:Software 133:Mellanox 62:M&As 918:Fishing 886:Banking 874:Medical 869:Tourism 840:Sectors 791:History 141:M&A 83:History 66:buyouts 896:Energy 320:Medium 159:, and 35:Israel 28:growth 927:Other 463:. IDF 859:Wine 809:Arab 517:2013 469:2013 428:2013 243:USSR 200:Deel 105:OECD 70:IPOs 545:(3) 43:VCs 1033:: 704:. 680:. 654:. 629:. 618:^ 608:. 572:^ 543:19 541:, 537:, 525:^ 508:. 459:. 414:. 390:. 363:, 345:. 334:^ 318:. 306:^ 225:, 217:, 213:, 209:, 155:, 68:, 64:, 57:. 775:e 768:t 761:v 718:. 690:. 665:. 640:. 612:. 594:. 519:. 471:. 444:. 430:. 400:. 376:. 349:. 328:.

Index

financial capital
growth
startup companies
Israel
venture capital
VCs
incubator
Silicon Wadi
Silicon Valley
M&As
buyouts
IPOs
venture capital
Dan Tolkowsky
Yadin Kaufmann
OECD
Research and Development
financial crisis of 2007-2010
mergers and acquisitions
artificial intelligence
Mellanox
Nvidia Corporation
M&A
Polaris Venture Partners
Accel Partners
Greylock Partners
Life Sciences
Software
Communications
Internet

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.