In 2020, when the rest of the world was gazing into the black hole of the COVID-19 pandemic, Israel witnessed an increase in the number of Israeli venture capital funds, as well as an increase in the diversity of various types of funds. What explains this Israeli distinctiveness? One reason is the development of new models of investment funds, including academic funds and growth funds, designed to cater to the diverse characteristics of Israeli-start ups. But even traditional venture capital funds saw an upswing during the epidemic. It seems that the acquired immunity of Israel’s high-tech sector to regional conflict and even all-out wars, such as the 2006 Second Lebanon War, extends to global pandemics as well.
Indeed, the Israeli High-tech sector seems more robust than ever, as the 2020 data demonstrates. Whereas the majority of first investments still went to early rounds (seed and A rounds), the size of first investments in growth rounds and later rounds has grown, representing a trend of 83% growth in later round investment between 2014-2020. The number of first investments in later rounds has also grown by 119%, and now makes up 10% of the total initial investments – compared to 6% in 2014. Clearly, this is a maturing and more confident market than the “Wild East” which characterized Israel’s high-tech sector in the 1990s and 2000s.
Still, though some things have changed, others have remained constant – you need a good Israeli investment company to make the most out of your capital, and avoid the pitfalls which plague the Anglo investor unfamiliar with the local scene or culture.
And that is where Everest comes in. We know Israeli society, and more importantly, we know the people. Contact us today to optimize your investment efforts in Israel.
