JERUSALEM, Sept. 9 (Xinhua) -- Israeli hi-tech companies and venture capital funds experienced a significant slowdown in funding during the first half of the year, said a report issued by the Israel Innovation Authority and the Israeli IVC Research Center on Wednesday.
The report said local funds struggled with ongoing market challenges such as a sharp drop in foreign investor participation, a lack of large late-stage deals, and capital constraints for new funds.
It said the drop reflects a broader trend of cautious investor behavior across Israel's tech ecosystem.
The total amount raised by local funds stood at 631 million U.S. dollars during the first six months, equivalent to an annualized pace of around 1.2 billion dollars, much lower than the 2.5 billion dollars raised in 2025.
Despite the slower pace of new money coming in, the report noted that local funds still hold around 8 billion dollars in capital reserved for future investments.
The report's analysts believe that while early-stage startups continue to receive funding, large late-stage deals remain limited until global market conditions stabilize. ■
