with Hamas is set to derail a fragile recovery in Israel’s all-important tech sector, say investors and analysts, after a global slowdown and the government’s divisive judicial reforms saw funding drop sharply this year.
Before the conflict, investment in Israel’s high-tech startups had dropped as the global economy slowed Before the conflict, investment in Israel’s high-tech startups had dropped as the global economy slowed, the collapse of Silicon Valley Bank removed a key funding source, and a proposed judicial overhaul threatened the bedrock of corporate law and intellectual property rights.
“Certainly, while we are in the midst of the war, it’s hard to imagine major deals happening,” said Avi Hasson, CEO of Startup Nation Central and a former venture capitalist. That said, Hasson and others expect Israel’s tech sector to rebound in the same way it has in past conflicts with Palestinian and Hezbollah militants.“Israeli tech has earned the confidence of investors in terms of being able to function during conflict and also recover from it,” Hasson said.
US venture capital fund Insight Partners said it would match up to $1-million in donations to a pre-approved list of charitable organisations in Israel, saying it was a “critical opportunity to stand with our Israeli friends and partners”.