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July 17, 2019 10:54 am

Israeli Tech Companies Raised $2.32 Billion in Second Quarter of 2019, Report Says

avatar by Hager Ravet / CTech

Outside Cybertech 2017, the world’s second-largest cybertechnology exhibition, which Israel hosted from Jan. 30 to Feb. 1 in Tel Aviv. Photo: Flash90.

CTech – Israeli tech companies have raised $2.32 billion in the second quarter of 2019, the highest sum raised in a single quarter since 2013, according to a joint report released Wednesday by Tel Aviv-based research firm IVC Research Center and the Israel office of international law firm Zysman, Aharoni, Gayer & Co. (ZAG-S&W).

In the first six months of 2019, Israeli tech companies raised $3.87 billion across 254 deals, more than 60 percent of the total investments made in 2018, according to the report.

Of the funds raised in this year’s second quarter, 78 percent were venture capital-based investments, which amounted to $1.81 billion across 73 deals. In the first quarter of 2019, 75 venture capital-based investments totaled $1.34 billion.

The median deal amount for Q2 was $5.5 million, compared with $5 million in the same period last year and $6 million in Q1 2019.

Late-stage companies raised record amounts in the second quarter of 2019 but for mid-stage companies funding was lower than in recent years, Shmulik Zysman, a managing partner at ZAG-S&W, said in a statement.

“The Q2 figures show that most early-stage companies are struggling to access investment capital,” Marianna Shapira, a research director at IVC, said. “This discrepancy might be a cause for concern about the future of seed ventures in Israel,” she added.

Information technology and software companies raised the highest sum of $1.02 billion in 49 deals in Q2, while life sciences companies came in second with $263 million in 27 deals.

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