33 million round valuing it at USD1.2 billion.” Jonathan at Shibolet emphasises: “Startups in sectors such as cybersecurity are particularly successful in securing early financing, largely due to the feeding loop created by the high M&A volume in the local industry. General Partners (GPs) have demonstrated to their investors the significant value in cybersecurity, creating a positive feedback loop that drives further financing. The current war in Israel has heightened and enhanced activity in this field, accelerating growth instead of delaying it. One example of a start-up whose growth I have enjoyed watching (and representing since day one!) is Entitle IO, whose talented founders led it this year to an impressive M&A with BeyondTrust.” VC investments in Israeli startups surprisingly strong With early-stage investors under pressure, VC investments in Israeli startups remain surprisingly strong. OurCrowd’s Tzahi: “The current state of VC investment is still dynamic and influenced by different factors, including economic conditions, technological advancements, and market trends. The last couple of years were certainly challenging with a tough fund-raising environment but with that said, the venture landscape remains strong, and VCs are actively seeking startups that innovate and disrupt traditional industries. Technologies such as AI, Biotech, and Clean Energy continue to attract significant investment.” Dr. Ayal at Goldfarb, Gross, Seligman agrees: “Early-stage financings have become more challenging during the last couple of years due to the general economic climate, as well Israel’s unique situation, although current state of VC investments in Israeli startups is surprisingly still strong, especially with respect to early-stage financing.” “The continuous state of war has not deterred founders from starting new companies and VCs from investing in such companies. Seed activity is still strong. VCs are particularly active in the domains of Cyber and AI. The main concern of VCs today is how to support companies seeded in the past and find additional investors to lead such companies A and B rounds. Another concern is the reduced valuations of startups which raised funds during 2022 at “bubble” valuations. Also the reduced allocation of institutional investors to the VC funds. Notable new funds include Elements which is focused on climate tech and Runi Ventures a VC fund founded by Reichman University.”
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