Report says Israeli tech investments almost halved in 2022
TEL AVIV, Israel (AP) — Investments in Israel’s tech sector dropped by almost half in 2022, reflecting a world financial slowdown, a nonprofit group reported Tuesday.
Startup Nation Central, which tracks the trade in Israel, stated the entire worth of investments within the tech sector sank from an all-time excessive of $27 billion in 2021 to about $15.5 billion final 12 months. The tech trade accounts for greater than half the nation’s exports, in accordance with official information.
It cited the worldwide financial downturn and stated the pattern was not distinctive to Israel.
Cybersecurity companies suffered the hardest hit, with a funding decline of greater than 60% between 2021 and final 12 months, SNC stated. Different sectors that every suffered a decline in funding sank by about 42%, the research discovered.
The group stated the drop occurred within the final half of 2022 on account of inflation and rate of interest hikes, in addition to provide chain issues and different points associated to the Russian invasion of Ukraine.
Over 400 tech trade executives and staff in current weeks warned Prime Minister Benjamin Netanyahu in a letter that his hard-line coalition’s proposals might hurt the sector and discourage overseas funding.
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