StartHY Looking at current trends!
The Startup Market in Israel across sectors..
High-tech Israeli startups eventually follow the a variety of types of exits, with M&As and Buyouts being the most common. At the same time, the value of IPOs has also steadily risen and more than doubled overall from 2015 to 2020.
Current Trends and Leading Technological Clusters
There are several leading high-tech clusters in Israel which attract the highest number of investors and talent, and offer the greatest return on investment as well innovation. Over the last decade, the fertile ground of Israeli entrepreneurship has yielded over 750 startup companies every year. Israeli entrepreneurs continuously manage to position themselves as global leaders in a variety of fields, repeatedly being able to identify the emergence of new trends and segments early on, maintaining
its position at the forefront of global innovation.
Artificial Intelligence (AI) has the most companies of any high-tech sector currently, and Israeli entrepreneurs’ ability to identify the potential in this field at an early stage and enter it quickly has made Israel a world leader in AI. There is also a significant increase in the number of fintech, cyber and digital health companies, and in capital raised by foodtech companies. These sectors are at the cutting edge of global innovation,
and have been promoted by the Israeli government through various government initiatives[1].
Alongside the development of new technological sectors, the dynamic nature of the Israeli innovation ecosystem is also reflected in its ability to quickly reduce activity in fields that are more mature. There is a significant decrease in the amount of capital raised and the number of active companies in communication technologies, as well as a decrease in the volume of capital raised for e-commerce. This may suggest that these sectors have matured and face more vigorous competition in the global innovation arena and are thus less attractive for private capital investments.
[1] Israeli High-Tech in 2019: Prosperity and Challenges; Israel Innovation Authority: https://innovationisrael.org.il/en/reportchapter/israeli-high-tech-2019
What Drives Us
In recent years, Israeli high-tech has held a leading global position in the field of AI. Israel is now among the world’s top three countries in the field of AI, following China and the US[1]. Moreover, Israel ranks second, after the US, in its number of leading AI start-ups[2]. It also ranks high in the
number of companies that develop infrastructure technologies for AI such as special- purpose chips, infrastructure algorithms, and complex systems for the acceleration of computing[3].
[1] The Global Artificial Intelligence Landscape, Asgard: https://asgard.vc/global-ai/
[2] CB Insights; AI 100: The Artificial Intelligence Startups Redefining Industries, 2021: https://www.cbinsights.com/research/report/artificial-intelligence-top-startups/
[3] State of AI Divergence, MMC 2019: https://mmc.vc/reports/state-of-ai-2019-divergence