Friday, September 18th | 1 Tishri 5781

Subscribe
May 14, 2020 11:20 am

Israeli Tech Industry will Miss Good Old Days of 2019, Survey says

avatar by Meir Orbach / CTech

Employees of the D-ID startup company work at the company’s office in Tel Aviv, Israel on February 7, 2018. Photo: REUTERS/Amir Cohen.

CTech – The annual survey held by Israeli law firm Shibolet & Co. in collaboration with Fenwick & West from Silicon Valley shows how much Israeli hi-tech is going to miss 2019.

According to the survey, the rate of companies that raised in early rounds rose to about 38% of the rounds surveyed compared to just 30% in 2018. Of the companies surveyed, some 89% saw their evaluation increase between rounds.

“2019 was an amazing year and will be used as a comparison to the world before the arrival of the coronavirus (Covid-19) pandemic,” Adv. Lior Aviram of Shibolet & Co. told Calcalist. “A large portion of the year was a bubble and bubbles burst. We are only now understanding what happened. It started with WeWork and continued with others like car-sharing company Lime, which lost 80% of its value. Companies with a high evaluation will not raise money now or will have to lower their valuation.”

“There will be less of a hit for early-stage companies raising money but they will also have to do so with a lower evaluation,” Aviram added. “A VC which invests after a crisis will do so in quality companies with a low value. Companies that have a higher evaluation and low sales are going to have a much more difficult time raising money. As there are more question marks regarding the state of the economy these companies are going to have a tougher time raising funds.”

Share this Story: Share On Facebook Share On Twitter

Let your voice be heard!

Join the Algemeiner

Algemeiner.com

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.