2020 was a major year for tech and the Israeli ecosystem in particular.

Like most world economies, the Israeli markets too were impacted by COVID-19. But as the year progressed, it was evident that the Israeli tech industry was exhibiting resilience and even thriving in the new reality, eventually breaking all historical records in terms of capital activity.

Our new Viola Data report, generated by our internal BI team, sheds some light on recent trends in the Israeli tech ecosystem:

• Tech investments in Israel continued to exceed records despite COVID-19, reaching $11.1B in 2020, Over 5X from the total raised in 2015. This trend seems to be increasing, with Q1 2021 closing at $5.4B in capital raised, already 50% (!) of the total funding in 2020.

• Israel maintained its spot in the Top 5 Largest Tech Markets Globally, (in terms of capital deployed to tech) with only US, China and UK preceding it.

• 2020 brought on the ‘Unicorn-Mania’, with 16 New Unicorns created in Israel in one single year!

• The parade of unicorns did not cease – 2021 Produced 10 New Unicorns in 3 Months. This brings the tally to a total of 45 Israeli tech companies currently members of the “Unicorn Club”.

 

Actually, in 2020 Israel produced 10% of New Unicorns Globally while being the target of only 3% of the tech funding.

 

• Despite COVID-19, Israel’s tech ecosystem attracted investments from all over the world, including the first investors from the UAE following the historical normalization agreements between the countries. Overall, throughout the year, 41% of all tech funding in Israel came from new investors.

• Funding expanded in all stages of tech investments, with growth and mega rounds (>$100m in size) continuing to serve as the most significant drivers.

• 2021 kicked off with strong momentum for Israeli IPOs with a strong pipeline of additional 18 companies at least scheduled to go public this year.

• By that, we are witnessed Israel’s shift from a startup nation to a land of decacorns, repeatedly producing global category leaders in almost every space, with ironSource, Playtika & eToro to name a few.

As we see these trends continue to increase in Q1, we believe 2021 will be an even stronger year for Israeli tech than the previous.

Interested in hearing more about the Israeli tech ecosystem?

Contact us: ir@viola-group.com