Jerusalem, March 3 Israeli hi-tech Venture Capital (VC) funds raised 1.15 billion US dollars in 2024, down by 40.1 per cent year-on-year and the lowest since 2015, according to an annual investors' report on Monday.
The amount was raised by 21 VC funds, the fewest since 2016, compared to 32 in 2023, according to a comprehensive report that analyses investors' trends and activities in the Israeli tech ecosystem, co-written by the Israel Innovation Authority, consulting firm KPMG Israel, Gornitzky GNY law firm, and the IVC Research Centre.
The report also showed an annual decline in the number of VC funds raising over 100 million dollars each, from nine in 2023 to five last year. In addition, initial investments by foreign corporate venture capitals declined in 2024 to 73 deals, the lowest in a decade.
According to the authors, the figures reveal a complex dynamic in the Israeli VC market with fundraising hitting a decade low. Actual investment volumes have increased compared to 2023 despite the ongoing conflict. The report suggests a potential shift in sentiment for 2025, as many funds are currently in the fundraising process.
Regarding investment sectors, cybersecurity and generative AI companies continue to enjoy high attention from Israeli VCs in 2024, while fintech and food tech companies fell to their lowest levels since 2018, reflecting shifting market preferences, Xinhua news agency reported.
Meanwhile, the year of 2024 saw a significant increase in biotech and digital health VC fund investments, with deep tech maintaining strong momentum. Geopolitical tensions and conflicts have also heightened investor interest in Israeli defence technologies, according to the report.
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