Israeli startups record largest funding increase in two years for Q2 of 2024

Israeli tech companies secured $2.9 billion in funding during Q2 2024, marking the highest quarterly raise in two years, according to data from IVC Data and Insights and LeumiTech. The initial figures, released on Sunday, were shared on IVC Data and Insights’ X profile, with a full report anticipated for mid-July.

This sum includes a substantial $965 million from Wiz, a cybersecurity company, in its fifth funding round, called Series E, in May. This quarter also saw an increase in the number of first-timer and international investors in the Israeli tech scene, according to the tweets.

Why is this relevant?

Tech sector in Israel has seen a downturn in fundraising starting in the latter half of 2022. This is largely due to a global economic slowdown, further aggravated by weak investment because of now-abandoned government plans to reform the judiciary.

The recent increase in investment comes after the Israel Innovation Authority called for a boost in funding for the tech sector, recognising its crucial role in the country’s economy and exports. A survey by Israel Advanced Technology Industries indicated that companies are facing operational difficulties linked to their Israeli identity, with some opting to relocate significant operations abroad.