December Edition 2024

18 toward sustainability, investors increasingly focus on companies that offer scalable, impactful solutions. “Climate tech is emerging as one of the next big sectors,” says Shay Dayan. “This is a space where technology can have not only financial returns but also a lasting positive impact on the world.” Diversified Investments: From Seed to Scale As the Israeli high-tech sector continues to evolve, there has been a notable shift in the maturity stage of companies attracting investment. While total investments in Israeli technology companies have remained consistent with previous periods, recent data highlights a change in the investment mix. Approximately 60% of the capital raised by Israeli tech companies from October 7, 2023, to October 6, 2024 — around $5.5 billion — was in rounds exceeding $50 million, targeting more mature, established companies. This trend reflects a preference for investing large amounts in later-stage companies with proven business models and scalability, a theme echoed by Viva Gayer, who points out that investors are increasingly attracted to stable, growth-ready ventures. This shift in focus underscores the market’s resilience and continued confidence in Israel’s high-tech sector, even amid challenging global conditions. Looking Ahead: Opportunities in 2025 and Beyond Despite current challenges, industry experts are optimistic about the future. The Israeli high-tech sector is poised for growth as Israel moves toward a post-crisis period. “2025 holds enormous potential,” Viva Gayer asserts. “We expect a surge in investments as stability returns. Funds that have raised capital recently are under pressure to deploy it, likely triggering a renewed growth cycle in the ecosystem.” Shay Dayan shares a similar outlook. “The global market for Israeli tech remains strong, and the entrepreneurial spirit here is unshaken. With Israel’s proven resilience, the coming year holds immense promise for those ready to seize the moment.” The advice for investors considering the Israeli market is clear: “Do not be deterred by the current situation,” advises Roy Caner. “Israel has weathered many storms before. The strength of its technology and the ingenuity of its people make it a consistently worthwhile investment.”

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