“The fact that things are literally proven on the battlefield” may have led international investors to set their sights on Israel, despite the uncertain economic situation (and beyond) in the country.
A new study revealed that investment in Israeli technology startups grew 28% last year to 10.33 billion euros, the
The main sector where the rise was noted was in Israeli companies cybersecurity, that they captured around 40% of all private capital raiseddespite representing only 7% of the total number of Israeli technology companies.
The technology sector is responsible for 20% of Israel’s gross domestic product and for around 10% of employment, and these numbers, although encouraging for the country, constitute only around one third of the volume of investments registered in 2021, before the media attention given to the armed conflict in Gaza.
The increase registers a change contrary to that of 2023, when there was a decline in investments to around 8 billion euros, the newspaper also points out. This increase arises against all expectations.
In fact, about 400,000 workers in the Israeli technology sector were deployed to the armed conflict between Israel and Palestine since October 7, 2023, when the Hamas group carried out attacks against the Jewish state. This detachment deserted the sector, so one would expect a shock in this field.
Furthermore, many foreign airlines cut service to Israel, which makes professional travel more difficult.
But, according to experts, what captivated investors may have been the practical experience of Israeli technology professionalsin the construction of products used in war.
“The fact that things are literally proven on the battlefield, and both customer understanding and ability to put them to use and accelerating the progress of these technologies, is something that is unique in Israel”, guarantees Avi Hassondirector of Startup Nation Central, an NGO that monitors investments in technology.
Karnit Flightsformer governor of the Bank of Israel, explains that the Israeli technology sector is among the largest in the world. “We have a high technology sector extremely innovative and dynamic that still remains”.
