Israel’s high-tech sector, which employs 14% of its workforce, is a major driver behind nearly a fifth of its overall economic output.
“Overseas investment will slow for the next couple of weeks and months, especially to the extent that there are still hostilities going on,” said Jon Medved, Chief Executive of OurCrowd, one of Israel’s largest venture capital firms. Israeli media said deaths from the attacks had reached 900, mostly civilians gunned down in homes, while scores of Israelis and some foreigners were taken to Gaza as hostages. Israel has responded with fierce air strikes into the Hamas-ruled Gaza Strip.
LeumiTech CEO Maya Eisen Zafrir said the figures were “the first signs of stabilisation in the amount and scope of fundraising, data that bring us back to the levels of 2018-19.” “Israeli tech has earned the confidence of investors in terms of being able to function during conflict and also recover from it,” Hasson said. “So, I don’t see investors losing faith in Israel so quickly.”“Historically, every time Israel has gone to war, long term has been a buy side,” he said.
Gem Security, a cloud security startup that just raised its Series A funding of US$23 million from US investors, has 30 staff split between Israel and New York. It was expanding the team when the conflict broke and some staff in Israel had to report for reserve duty.
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