The Startup Nation Policy Institute releases its 2023 annual report on the tech sector. Investments fell by 60 percent.
This is primarily due to the political crisis due to the rise to power of the far right and the promotion of legal reform at the beginning of the year.
The report points to a continued decline in investment and recruitment rounds.
In addition, the SNPI report points to a jump in the number of foreign funds that have stopped investing in high technology, as well as a sharper decline in investment in Israeli high technology compared to peers in Europe and the United States.
“2024 will be a critical year that will determine their future,” says SNPI CEO Uri Gabay. “Without leading high technologies there will be no economic and government sustainability. In the current reality, with increasing global competition along with the crisis, the challenges facing Israeli high technology become much more complex.”
Total venture capital investment in Israeli high tech in 2023 was $7.3 billion, a decline of about 60% compared to 2022 and the lowest since 2018.
Early investment rounds (Pre-Seed) last year saw a sharp decline in investment by 45% compared to 2022. The decline in venture capital investment in Israel between 2022 and 2023 was almost double that recorded in the United States.
The SNPI cites ongoing uncertainty as a cause for concern and expresses concerns that 2024 will be a continuation of 2023 in terms of political and security uncertainty. They also point to the problem of recruiting high-tech workers, many of whom are still being pulled into the pools, which continues to hurt the tech sector.
bbabo.Net