After an extended period of tepid activity in the private securities markets, private tech firms in Israel experienced an increase in funding during Q2 2024. According to the IVC—Leumitech report, private funding hit $2.9 billion for 110 funding rounds during the second quarter. If you factor out Wiz’s sizeable raise of $965 million, private funding still increased by a whopping 19% versus Q1 2024.
The report states that Q2 is the first quarter since the beginning of 2022, in which there has been no decrease compared to the corresponding quarter last year.
Mia Eisen-Tzafrir, Leumitech CEO, said they are pleased to see the signs of recovery following the challenging economic environ.
“The data demonstrate growth in the number of deals and the transaction amount compared to Q1/2024 and the corresponding quarter last year. If such activity volumes continue, we are at a pace where the tech sector will finish a year of growth compared to the previous year. In addition, in the in-depth checks we did regarding the identity of the investors, it is encouraging to see foreign investors – who have never invested in Israel – taking part in transactions even since the beginning of the war.”
Six large funding rounds helped deliver solid results, generating 62% of total money raises. Four of these firms were cyber-related, a hot sector of venture funding.
The report shares that the number of foreign investors who invested for the first time in Israeli tech companies increased in Q2 after a continuous decline.
