Recently, the Israel Innovation Authority (IIA) published a new report that sheds light on the current state of the Israeli high-tech sector.
One of the most relevant data from the publication is that, during 2023, there was a 55% drop in investments in startups. This reduction is especially seen in advanced financing rounds.
Job growth in the sector has also slowed, rising just 2.6% in 2023. Additionally, nearly 40% of venture capital funds surveyed reported that at least one company in their portfolio moved intellectual property abroad due to the economic instability facing the country.
The IIA report highlights the need to increase government investment in the high-tech sector. President Alon Stopel expressed that “the sector may have difficulty facing crises, as it is heavily dependent on foreign investment and lacks a significant local safety net.”
Dror Bin, the general director of the government entity, stated that “government money has two objectives. First, it is a tool to overcome the current recession by injecting money into companies that need financing to continue their growth trajectory.”
Source: Aurora Israel