JEWISH WORLD

18 JEWISH WORLD • APRIL 12-18, 2024 By SHARON WROBEL I sraeli tech startups nabbed a to- tal of $1.6 billion from inves- tors in the first three months of the year, in a first sign that the fund- raising drought caused by the out- break of the Israel-Hamas war is beginning to show some recovery, according to a report compiled by research center IVC and Leumi- Tech, a Bank Leumi arm that spe- cializes in tech companies. Capital raised by Israeli tech companies rose 10 percent in the first quarter of 2024 from the previ- ous quarter, when $1.45 billion was secured as the war led to a sharp plunge in investments. However, fundraising in the first three months of the year was still down 10% from the volume of capi- tal raised during the same period last year, preliminary data presented in the IVC-LeumiTech report showed. “Despite domestic instability brought on by the ongoing fighting and complex macroeconomic conditions, we see that the trend of stabilization in the industry continues into 2024,” stated LeumiTech CEO Maya Eisen Zafrir. “Israeli high-tech is standing firm and showing encouraging signs tor, the growth engine of the Israeli economy, has damaged startups’day- to-day operations, as well as their ability to attract foreign investors and raise funding. The war hit the Israeli tech indus- try at the end of a crisis year in which it was already facing a global down- turn in venture capital funding, as well as local political uncertainty over the government’s proposed judicial overhaul that threatened to erode investor confidence (and which has been shelved for now). The number of deals recorded in the January-March period increased by 35% from the previous quarter, to of recovery.” The Israeli army mobilized hundreds of thousands of reserve soldiers as the war began, some of whom remain in uniform after almost six months. The absence of personnel in the tech sec- The absence of personnel in the tech sector due to the war has damaged startups’ ability to attract foreign investors and raise funding. Upbeat News For Tech Startups Raise $1.6 billion in rst sign of recovery from war toll continued on page 26 STARTUP NATION Soldiers in reserves. About 20% of Israeli high-tech workers were on active duty in the IDF as of December 2023.