Israeli startups saw a 56% drop in funding in 2023
Despite the complex geopolitical situation and a global economic slowdown, Israeli startups managed to raise $1.45 billion in the fourth quarter of 2023. While the fourth quarter's performance was positive, the overall funding for Israeli startups in 2023 declined compared to the previous year.
The total funding reached $6.9 billion in 392 rounds, marking a 56% drop from the record-breaking $14.95 billion raised in 2022, according to preliminary data from the IVC and LeumiTech.
Several factors contributed to the decrease in funding, including the global venture capital slowdown, and the ongoing war in the region.
The preliminary report suggests that the funding figures for 2023 in total align with the numbers of the pre-Covid era of 2018-2019. The data indicate a 44% decrease in rounds compared to 2022 and a 56% decrease in fundraising amounts.
Investment volumes in seed rounds continued the upward trend that started in early 2023. Funding in these rounds amounted to $220 million compared to $365 million in the fourth quarter of 2022.
Despite the challenges, Israeli startups continue to attract significant investments, highlighting their potential for innovation and growth. 2024 is poised to be a good and promising year for Israeli tech start-ups. Reports of startups securing funds to propel their growth in various domains are already emerging.
