$3.7b in Israel acquisition deals since start of war

Israel’s tech sector remains strong since the start of the war, according to new data from Startup Nation Central. In the nearly six months since the war began on October 7, Israeli startups have raised $3.1 billion in 220 private financing rounds. The biggest financing round completed since the start of the war was by fintech company Next Insurance, which received investments of over $250 million from each of two foreign investment funds.

The data also show that the overall amount of mergers and acquisitions in Israel’s tech sector since the start of the war totaled $3.7 billion. Among the companies acquired for large amounts were Talon Security, acquired by Palo Alto Networks for $625 million, Dig Security, also acquired by Palo Alto for $350 million, Avalor acquired by Zscaler for $350 million and Gem Security acquired by Israeli company Wiz for $350 million.

Two other cybersecurity companies – Flow Security and Spera Security, were acquired for $200 million and $130 million, respectively. In the healthcare sector, there were also major acquisitions with CartiHeal, which manufactures coral implants to support damaged human cartilage, acquired for $330 million.

“After the war, I anticipate a startup baby-boom of tech companies”

The report found that since October 7, 20 new Israeli venture capital funds have been founded that have raised an overall $2 billion. Eleven of the funds were founded to provide a response to the urgent needs of startups experiencing financing difficulties because of the war. Among these funds were Iron Nation, the resilience fund set up by OurCrowd, Trendlines – Startup Shield SPV, a fund supported by Google Support Fund, as well as other funds.

These figures come alongside a significant fall in manpower in the industry since October 7, with about 15% of employees drafted into the army reserves and short term financing shortfalls caused by the war, mainly hitting early stage startups. The data for the report was gathered by Finder Spotlight Research.

SNC CEO Avi Hasson said, “With attractive valuations and significant growth potential, the Israeli tech ecosystem is showing characteristic resilience. I anticipate seeing a new wave of innovation – a ‘startup baby boom’ of tech companies – which will create even more dynamic opportunities for our sector after this war.”

Published by Globes, Israel business news – en.globes.co.il – on March 31, 2024.

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