Dubbed by some as a 'startup nation', Israel has long been seen as an epicentre for tech and innovation. This is, of course, driven in part by government R&D spending related to defence and security technology, but the country is also home to an established VC environment. This, in turn, is attracting tech giants—and others—with deep pockets.
Microsoft’s reported $100 million bid for cybersecurity company Hexadite this month and Intel’s whopping $15.3 billion deal for autonomous driving tech developer Mobileye are indicative of this trend. Meanwhile, sports-car maker Porsche is setting up an innovation centre in the country in order to secure deals and attract IT engineers and AI specialists.
But which VCs are backing these companies and how active are the investors? Since the start of 2015, 363 VC firms have completed at least one Israel-based venture deal, per the PitchBook Platform, with 468 deals closed in total during that span. Capital invested through these deals increased significantly, from €1.1 billion in 2015 to almost €2 billion last year. So far this year, almost €632 million has been invested.
Just over two-thirds of the capital invested since the start of 2015 has gone to the IT industry, over four times more than its closest rival, healthcare, which received 15%. Check out the top five VC firms in Israel over that span, along with their investment counts (excluding accelerators):