JERUSALEM, March 20 (Xinhua) -- Israeli hi-tech venture capital (VC) funds raised a total of 1.52 billion U.S. dollars in 2023, down by 74 percent year-on-year, according to a comprehensive investors report issued Wednesday.
The amount was raised by 21 VC funds, compared to 62 in 2022, according to the annual report, which was co-written by the Israel Innovation Authority, the consulting firm KPMG Israel, the Gornitzky GNY law firm, and the IVC Research Center.
It noted the total amount raised last year hit the lowest level since 2015, whereas the number of funds matched those registered in 2015 and 2017.
The authors explained that Israel's tech sector is contending with the aftermath of the global downturn and the adverse impacts of political unrest and the ongoing war against Hamas.
They added that Israeli venture capitalists adopted a strategic and selective stance, directing their funds mostly toward their existing portfolio companies with the highest potential for success.
The report also noted that Israeli VC funds last year allocated 1.14 billion dollars for investments in tech companies, the lowest amount since 2015.
Additionally, Israeli institutional investors contributed an estimated 143 million dollars in direct investments in tech companies in 2023, marking a significant 70 percent decline from 486 million dollars in 2022. Also, the number of deals fell by 55 percent in 2023. ■
