Security News > 2021 > July > Israeli companies get $2.3B of VC funding in the first half of 2021, surpassing the 2020 total by 28%

Israeli companies get $2.3B of VC funding in the first half of 2021, surpassing the 2020 total by 28%
2021-07-27 11:18

Start-Up Nation Central, the independent not-for-profit organization connecting global corporations, investors, and governments to the Israeli tech innovation ecosystem, revealed that Israel's FinTech sector experienced a record-breaking first half of 2021 in terms of VC investments.

According to a data gathered from Start-Up Nation Central Finder, Israeli companies raised $2.3B in the first half representing a staggering 260% increase over H1 2020 funding, and even surpassing the 2020 full-year total of $1.8B by 28%. Investments in FinTech made up 19% of the total funding in Israeli innovation technology companies during H1, which amounted to $12.2B. When it comes to international comparisons, data from PitchBook showed that Israel's 28% increase in FinTech funding over the 2020 total surpassed the 20% increase in US company funding and the negative growth exhibited by the Asian ecosystem but fell short of Europe's impressive 63% growth during the same period.

Investors' interest in Israeli FinTech was also expressed in the number of the sector's funding rounds.

The first half of 2021 also indicated very strong exit momentum in the Israeli FinTech sector, with 7 acquisitions, 1 IPO, and 1 completed SPAC, compared to 8 acquisitions and 1 IPO throughout all of 2020.

Over the last two years, 70% of Israeli FinTech funding was funneled into three prominent subsectors: Payments, Anti-fraud and Insurtech.

"2021 has been encouraging for the Israeli FinTech sector so far, with a record number of large late-stage funding rounds, notable exits, and emerging early-stage companies. COVID-19 drivers aside, Israeli FinTech companies have grown rapidly and globally, building commercial partnerships and contributing significant technology to payments and enterprises. Tech innovation significantly upgraded legacy financial services processes. The sector now stands poised for a new era, we see a digital age emerging and are watching digital currency evolution enter a new digital age, it seems the stage could be set for subsequent FinTech evolution such as the adoption of digital currencies," said Nicole Krieger, FinTech Analyst, Start-Up Nation Central.


News URL

http://feedproxy.google.com/~r/HelpNetSecurity/~3/Gn3IqQ4oUqU/