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Is the start-up no longer verified? - Walla! Of money


Only 520 start-up companies were established in 2020 in Israel - a decrease of 63% compared to 2014, according to the report of the Israeli Innovation Authority for 2020

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Is the start-up no longer verified?

Only 520 start-ups were established in 2020 in Israel - a decrease of 63% compared to 2014, according to the report of the Israeli Innovation Authority for 2020. Dr. Ami Applebaum, Chairman of the Authority: "If nothing is done, we will miss the start-up Nation "


  • Hi-Tech

  • Hi Tech

  • start up

  • Investments

  • Research and development

  • Innovation Authority

Roast Greenberg

Wednesday, 16 June 2021, 06:53 Updated: 07:27

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In his farewell speech as Prime Minister, just before attacking the incoming Prime Minister, Benjamin Netanyahu boasted of the flourishing of Israeli high-tech, the industry that allowed the State of Israel - even in Corona - to stabilize the economy, at least relative to those in Europe and North America. Eyes.

We will not take from Netanyahu what he deserves: the high-tech industry in Israel did flourish in his time, and yet: if you want to be precise and check the report of the most competent factor in Israel, the Innovation Authority, it turns out that Netanyahu leaves his successor (remind us, the high-tech industry himself). Some elements are worrying regarding the future of the knowledge-intensive industry in Israel.

The situation is still good, but the address is already ominous on the WALL.

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The weak handshake between Netanyahu and Bennett. Although Netanyahu was quick to attribute to himself the success of Israeli high-tech, he leaves his successor a complex legacy (Photo: Walla !, Reuven Castro)

According to a report released today Innovation Authority (Wednesday), only 520 startups were established during 2020, compared to approximately -1 404 companies were established in 2014 - a decrease of 63%. This is a further decline after returned -2019 850 companies were established.

PA explain the decline in innovation as part of the worldwide trend of declining investments in seed (initial recruitment) and Pre Seed (concept stage), and a concurrent increase in the growth of existing companies and the number of unicorns (Unicorn - Privacy's worth of start-up companies is estimated at one billion dollars).

D. " Rabbi Ami Applebaum, Chairman of the Innovation Authority

, told Walla! Money, that "SEED and PRE SEED investors now have other opportunities to navigate their money, while these investors are essential for start-ups as they usually have expertise and accompany the company. The startup and the entrepreneur.

The Angels Law (tax benefits for investors in start-ups) is waiting for a working government to be updated and to allow continued investment in the industry, which entitles the State of Israel to revenues that are several times higher than its investment in them within a few years.

In addition, the big high-tech companies have learned how to innovate and the innovative and entrepreneurial workforce is going or stays in the big companies.

If nothing is done, we will miss the start-up Nation. "

"Investors today have other opportunities to navigate their money."

The worrying part of the report (Photo: ShutterStock)

State investment in innovation - one of the lowest in the world

In response to the lack of investment, the Authority sees a need for state investment in companies operating in the fields of life sciences and technological infrastructure, from which investors are deprived due to the long time required for development that requires, among other things, dedicated regulation, and in some areas various experiments.

Applebaum added, "Investors are also looking at the way the state sees things, and when areas of practice change so rapidly, the state must be there to give the initial required response, after which it will reap the rewards.

The Innovation Authority, for example, was the only player in the fields. FinTech and Podtech are already in 2016, and today the country is reaping the benefits after these areas became some of the areas that led the wave of investments in the world in 2020. FinTech, for example, which led cyber high-tech investments in 2020, would not have entered so strongly if the Innovation Authority It was a regulatory sandbox initiative that allowed the industry to develop. "

State investment in news, however, is among the lowest in the EU and US countries and stands at about 0.5% of GDP for 2018 compared to about 1% of EU GDP and about 0.65% of US GDP for that year, and the Authority recognizes that the downward trend Continues.

Among the proposals raised by the Authority to curb the downward trend in R&D investment by the state was also the linkage of the Authority's budget as a hard percentage of GDP.

Dr. Ami Applebaum, Chairman of the Innovation Authority (Photo: Hanna Tayeb)

NIS 650 million has been distributed, and the institutions also want to benefit from the investment

The Corona has led the Innovation Authority and the Ministry of Finance to develop the 'fast track', which is designed to inject money into start-ups to which the flow of private money as a result of the Corona crisis has been stopped.

The Authority notes that during the 7 months in which the channel operated, approximately NIS 650 million was distributed as part of 283 applications.

In addition, the Authority worked to develop a route to encourage the investment of institutional entities in private high-tech companies in their initial stages.

Israeli high-tech: great pride and a cause for concern (Photo: ShutterStock)

High-tech is growing up?

More mature companies and investments in advanced recruitment rounds

The Authority's report also shows that although the number of start-ups is significantly small, the capital they raised will grow fourfold in a decade to about $ 11.5 billion in 2020 - 20% more than in 2019.

The leading areas for investing in Israeli start-ups were cyber and fintech. Which attracted the largest amount of capital for 2020 and stood at $ 1.9 billion and $ 1.7 billion, respectively. The Authority's report also notes that the corona year contributed to digital health start-ups, which raised about $ 1.3 billion in 2020. The

corona also led to a record high of Start-up IPOs, which reached a peak of 31 initial public offerings (IPOs) in 2020, raised about $ 4.2 billion on the Tel Aviv and Nasdaq stock exchanges. The report also states that the value of high-tech companies traded on the Tel Aviv Stock Exchange is about 40% of the value. All companies in the Tel Aviv 35 index. It should be noted that 23 additional issues were made in the first quarter of 2021, which is currently expected to yield a new record for high-tech issues.

"We must not be euphoric in light of the recruitment data and the number of unicorns," says Applebaum, "and understand that the vision should be another decade ahead, that we should continue to produce mature and large companies in Israel, which will include many more work circles beyond software and development, such as marketing, sales, training and more."

The country is also not currently achieving a target of 15% employment in the high-tech industry, which yields 15% of GDP and 43% of exports, and is at the level of 10% of all workers in the industry employed in industry.

So true, Israel is still an example of the high-tech industry. The grumbling of the economy, the one that carries it on its back and is slightly less exposed to risks like war or even plague, but never resilience.

The State of Israel, which enjoys the fruits of local innovation, attracts to invest in and nurture it - so with all the pride of the outgoing prime minister, one of the urgent tasks of the incoming prime minister is to make sure that one day he too can be proud of his industry. More problematic than it seems at first glance.


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Source: walla

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