Private funding by Israeli startups in the first half of 2023 dropped to a five-year low as the “ripple effect” from the growing uncertainty around the controversial judicial overhaul is taking a toll on the country’s tech ecosystem, according to a report published by Start-Up Nation Central (SNC), a nonprofit organization that tracks Israel’s tech industry.
In the first six months of the year, Israeli startups raised a total of $3.9 billion from private financing rounds, marking a 29% drop from the volume of funds raised in the second half of 2022, and a 67% decline from the $11.9 billion nabbed during the same period last year, the data compiled by SNC’s Finder startup database showed.
More concerning, the report pointed to a quarter-on-quarter fundraising decline of 10% from the first quarter to the second quarter of this year, while in the US private funding trends are stabilizing, it was noted in the report.
Health tech and fintech were among the sectors that got hit hardest during the first half of the year in nabbing private funding, while climate tech firms attracted more capital and the downturn in investments in cybersecurity firms stabilized.
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