October Sees Israeli Hi-Tech Industry Raise Close to $1 Billion

Israel’s tech sector marked a significant achievement in October, with privately-held companies and startups raising nearly $1 billion, according to a recent report by Israeli business daily Globes. This surge in investment pushed the total raised for the first ten months of 2024 to over $8 billion, surpassing the $6.9 billion raised in all of 2023. The success of October’s fundraising highlights Israel’s continued role as a leader in technology and innovation, even amid challenging circumstances.

Several major financing rounds contributed to October’s impressive results. Leading the charge was cybersecurity company Armis, securing $200 million in new funding. Payments platform Melio followed with $150 million, while proptech firm DoorLoop and cloud backup company EON raised $100 million and $77 million, respectively. The IVC-LeumiTech report, which tracks the tech industry’s growth, noted that Israeli tech companies had raised $7.2 billion through the first nine months of the year.

Tel Aviv University economist Dan Ben-David pointed out that the hi-tech sector contributes to about half of Israel’s total exports, though it employs only 6% of the country’s workforce. This lean yet highly productive sector has seen some challenges in recent months, with approximately 10% of its workforce missing workdays due to military reserve duty in the ongoing conflict with Hamas.

Despite these challenges, Israeli tech companies have rallied to address the unique needs arising from wartime conditions. Leveraging their expertise, many startups have pivoted to developing solutions for communication, logistics, and healthcare that support national defense and civil society. These initiatives underscore the tech sector’s critical role not only in economic growth but also in national resilience.

Israel’s tech sector stands as a testament to the strength and adaptability of Israeli innovation. With this recent surge in funding, Israeli startups are well-positioned to continue leading in global technology while supporting their country’s urgent needs.

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