Posted on 04/02/23
| News Source: i24
'As long as uncertainty about the future of democratic institutions in Israel persists, the industry will continue to be challenged'
A new survey conducted by the Start-Up Nation Policy Institute (SNPI) in the first quarter of 2023 showed that investment in the Israeli high-tech sector since the beginning of the year reached $1.7 billion, the lowest since 2018.
SNPI is an independent think tank that strives to strengthen Israel's innovation ecosystem while extending its impact to all areas of Israel's economy and society. The data indicates that about 40 percent of the total investments were raised by just three companies: Wix, eToro and Via.
This drop in investment should mainly affect new start-ups, created after 2021, while their predecessors benefited from the post-Covid recovery period, the report stated. SNPI CEO Uri Gabai expressed concern over the situation saying that "the results are particularly worrying and are a wake-up call for anyone who cares about Israeli high-tech.”
He added that the combination of a global slowdown and local instability could be devastating for the industry. Thousands of Israeli tech workers joined protests against the government's judicial reform plans, which has recently been postponed by Prime Minister Benjamin Netanyahu.
“We welcome the postponement of reform, but as long as uncertainty about the future of democratic institutions in Israel persists, the industry will continue to be challenged. It is important to warn: if the trend does not change not soon, it may be the end of the Start-up Nation", Gabai concluded.