Israeli high-tech companies raised $2.24 billion in 142 deals in the third quarter of 2019, according to the data released by IVC Research Center and the ZAG S&W Zysman, Aharoni, Gayer & Co law firm. That tops the highest amount and the highest number of deals since 2013.
The amount raised in Q3 2019 was up 37% over the same quarter in 2018, when high-tech funding was $1.63 billion.
Breaking down of where the money went to:
- Software continues to lead, with almost $1.4 billion raised in 52 deals.
- Life sciences did well by raising $350 million in 38 deals.
- Cleantech companies came the third, growing both by number of deals and the amount raised ($85 million).
What can we expect in the coming of 2020? Sure to watch artificial intelligence and cyber security investments. IVC reports that, over the last five years, there has been a continuous increase in capital raising and exits in these technology verticals.
However, there is a warning sign showing in the data: less money is going to early stage companies, according to Shmulik Zysman of report co-author ZAG, with much of the investments going to more established high-tech firms.
In Q3 2019, for example, only $264 million went to early stage companies comparing to $1.9 billion taken by later stage counterparts. That continues a trend from last year in the same quarter, when $559 million went to early-stage companies and $1.2 billion went to more mature companies.
