Amid market declines, Israeli technology companies raise nearly $ 10 billion in first half of 2022

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Israeli startups and companies In the first half of 2022, they raised nearly $ 10 billion in investments, which led to the dismissal of thousands of workers and the embarrassment of investors, according to H1 2022’s latest IVC Israel Tech Review. At the Research Center IVC and LeumiTech, Lumi’s banking arm for high-tech companies has come together.

The figure is down 30 percent compared to the second half of 2021 – part of the Bonanza financial year, in which Israeli companies invested $ 25.6 billion in private investments – but companies are on track to finish with higher investment figures by 2022. In all, by 2020, technology clothing would raise $ 10.3 billion annually, a record previously untapped.

2021 was a very difficult year for the global technology industry, with $ 643 billion in personal funding. This cash flow has led to high company reviews and sometimes overvalued companies. About half of all existing Unicorns (private companies worth $ 1 billion or more) will be “born” by 2021.

It was a record year for technology IPOs and M&S.

Israeli technology companies are projected to hit $ 81.2 billion in 2021 by 2020 percent. (Exit is defined as merger and purchase agreements or initial public offerings of shares.)

But by 2022, the market is starting to turn around, and reviews and shares have been sold out publicly.

According to calculist records, more than 1,000 technology workers have been fired or are being fired while companies are saving “mega-rounds” ($ 100 million or more) a few months ago.

Investment agencies and financial institutions have warned that by 2022, inflation and interest rates are rising, Russia’s ongoing war on Ukraine is affecting supply chains and the world economy, and investors are shrinking.

In a statement, IVC CEO Guy Holman said: In the first six months of 2022, he said, he found the Israeli technology sector to be “the difference between exaggerated assessments and the potential for global economic depression.”

But the emerging technology economy was excellent in Q2 2022 last year, investing $ 4.12 billion in 182 agreements, Holman said.

“Negotiation numbers and rates have not changed much in the historical stages, and the contract prices of high-growth companies have adjusted to the trend at Wall St.. It remains to be seen how the current situation will affect the preliminary stage.

Between January and June 2022, Israeli companies raised $ 9.8 billion in 395 deals, and the technology industry saw 66 “outings” from nine IPOs (including two SPACs) and 56 mergers and acquisitions (M&AS), according to IVC-LeumiTech.

Intel plans to buy an Israeli tower semiconductor for $ 5.4 billion. Intel is set to acquire Israeli computer technology granule for $ 650 million.

Google bought Israeli security firm Siemplify earlier this year for $ 500 million, and Qualum, a US technology giant, is accelerating the deployment of Israeli cloud-based and cloud-based artificial intelligence technology. 5G network around $ 350 million.

Some of the most popular investment transactions this year include a roundup of financial assets for the Firefox Platform, a $ 550 million investment in January, a $ 400 million investment by construction technology company VV, and a $ 200 million round of cyber security company Axis. March.

In June, Coralogics announced the launch of a $ 142 million series of advanced machine learning log analytics. Israeli semiconductor company Viar has invested $ 108 million in the development of 4D imaging radar. And Idok, AI-based software to help radiologists read imaging scans has raised $ 110 million.

According to previous technology reports, companies in the cybersecurity sector raised the largest amount of funding (about $ 2.5 billion) in H1 2022, followed by Fintech’s start-up to $ 1.5 billion, IoT ($ 700 million) and food technology clothing $ 450 million. Investments, including $ 135 million for redesigning plant-based meat.

LeumiTech CEO Timor Arbel-Sadras said that most of the investment deficit in H1 2022 is higher than $ 50 million (in H1 2022 61 such agreements are reduced by 79 in H1 2021) and below, financial support continues. As primary investments increase.

“With less than $ 50 million in funding, it is relatively stable. This figure confirms that there are good companies that will continue to raise money at the right price. At the same time, the reality is that they need to make quick changes to keep their money in their hands for a long time.

Arbel-Sadras said the sector is focused on growth, operational efficiency and established business models. “Mature companies that work on these principles will overcome challenges and run successful financing cycles,” she said.

Arbel-Sadras also said, “Demand for technology products remains stable in all sectors. The data shows that investors continue to seek young companies at the same level of investment.”

Initial rounds have reached more than $ 2 billion in H1 2022, according to the report.

“Strength in the first round may indicate that investors are more interested in more profitable investments than the high-growth companies that are now considered overvalued,” the report said.

Arbel-Sadras told first-time entrepreneurs: “This is undoubtedly.

H1 numbers [2022] They are remarkable, but there are still clear signs of a slowdown in some parts of Israel’s technological economy, ”the report said.

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