The Start-up Nation Sets New Investment Record
The world’s investors turned to Israeli tech in 2021 with a record $25B of funding pouring into the ecosystem – an almost 2.5x increase on 2020.
The year was characterised by investment in later stage funding rounds in much larger amounts per investment, demonstrating the maturity of the ecosystem. In fact, in 2021 there were 77 deals exceeding $100M, up from 20 in 2020.
Exits of Israeli start-ups in 2021 also set a new record with $82.4B invested to secure technology solutions from the ecosystem.
The Start-up Nation is now the birthplace to 80 tech unicorns (private companies valued at $1B or more) as 42 new companies joined the club in 2021 alone.
Fintech: One of Israel's hottest tech sectors
Fintech dominated investments with a 136% increase in the number of companies being funded – each sharing in over $4.5B in total investments. In fact, 17% of all Israeli unicorns (companies valued >$1B) are Fintech or Insurtech companies.
In other news, global demand for online payments skyrocketed last year, cementing the subsector as one of Israel’s most sought-after by investors. Payment companies make up 35% of Israeli Fintech.
Spotlight on Digital Health
The pandemic has put health top of global public agendas over the past two years. It’s seen huge leaps in digital health innovation, backed by record funding across the over 1,400 Israeli digital health companies.
Specifically, the digital therapeutics subsection saw the largest growth with $147M (+300%) of funding in 2021.
What makes Israel so innovative?
Considering Israel’s young age, small population, lack of natural resources and geo-political situation, Israel’s strength as a tech epicentre seems almost a miracle.
With a unique combination of factors driving its innovative nature and spirit, culture and strong motivation to succeed, Israel is the second highest performing center of innovation in the world, after Silicon Valley. Almost all global tech companies have an R&D center in Israel.
This outstanding performance is based on 6 pillars that integrate to make the ecosystem so unique.
Download the full report today
For a deep dive analysis into Israel’s tech ecosystem, plus a look a future trends in insurance, finance and Fintech, download our latest report today.
