Israel venture capital report 2020

Report: Israel Private Capital Breakdown 2020

The state of Israel Private Capital report 2020

Pitchbook Data released a new report on the state of Private Capital in Israel 2020, covering private equity and venture capital. I’ll focus on VC only here as it’s the core focus of this blog.

In 2010, VC funds in Israel had over $10 billion of assets under management, by 2017, that number had grown to over $36 billion. The growth is underpinned in part by the availability of Israeli banks’ networks, the lack of a central bank to act as a regulator and the fact that the government can provide tax breaks for VC funding.

  • Israel based startups raised $4.1 billion of VC funding in 2019
  • VC deals with US investor participation accrued a record $3.2 billion in 2019 and are pacing for a high showing in 2020 as well.
  • Israel VC deal activity with CVC participation has also progressed in the last four years, with deals accumulating $2.4 billion in 2019 and $1.5 billion in H1 2020.
  • Mobility, Cybersecurity and health have seen a number mega rounds and acquisitions in the last two years
  • Israel enjoyed a bumper year in 2019, with exits totalling a record $4.1 billion.

VC fundraising in Israel has developed strongly in the last decade as new GPs have been set up, specialist VC funds have emerged within strong VC sectors, and international investors have invested in the Israeli ecosystem via locally raised funds. We are proud to play a small role in this trend with Remagine Ventures.

VC Deal Activity in Israel (Source: Picthbook)

Potential risks ahead

The analysts believe that longer-term trends such as cross-border expansion for Israeli startups scaling into Europe or the US may slow as economies dip. Similarly, investments, relocations, or expansions into Israel from VC stakeholders may be delayed until greater certainty is known about the fallout from the pandemic.

Overall, the report paints a positive outlook for Venture Capital in Israel despite the global economy headwinds caused by Covid-19:

“Looking ahead, we expect activity in the Israeli VC ecosystem to remain strong despite COVID-19 and the longer-term economic troubles facing numerous sectors”

Source Pitchbook

Download a copy of the report:
https://pitchb.co/ZdjgZ1

Follow me
Co Founder and Managing Partner at Remagine Ventures
Eze is managing partner of Remagine Ventures, a seed fund investing in ambitious founders at the intersection of tech, entertainment, gaming and commerce with a spotlight on Israel.

I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.

I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
Eze Vidra
Follow me
Total
0
Shares
Previous Article
B2C subscription landscape

The B2C SaaS Landscape and the Bundle Wars

Next Article
Israel unicorn startup lanscape

The Israeli Unicorn Landscape

Related Posts
Distribution of first and follow-on Israeli VC fund investments (%)
Read More

144 Israeli startups raised $483 million In Q1 2012

According to the latest IVC-KMPG quarterly survey published today, in the first quarter of 2012, venture capital investments in Israel rached $483 million, up slightly from the amount invested in Q1/2011. 144 Israeli high-tech companies raised $483 million from Israeli and foreign venture investors, 15% below $569 million raised by 124 companies in the previous quarter, but almost equal to $479 million raised by 140 companies in Q1/2011.
VC Cafe investment in Israel
Read More

Invest in Israel Newsletter February 2011 Edition

As every month, VC Cafe is re-posting the “Invest in Israel” Newsletter, published by the investment promotion center of Israel’s Ministry of Industry, Trade and Labor, which offers many helpful tools for prospecting investors. See the February 2011 edition after the jump. For previous editions, click here.
Total
0
Share