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And sometimes the celebration continues? On the record of recruitments in Israeli high-tech - Walla! Of money

2021-12-15T11:16:13.195Z


Israeli high-tech, with an emphasis on startup companies, raised more than $ 25 billion this year. Does the fantastic sum express the record, or will the celebration of fundraising continue?


And sometimes the celebration continues?

On the peak of recruitment in Israeli high-tech

Israeli high-tech, with an emphasis on startup companies, raised more than $ 25 billion this year.

Does the fantastic sum express the record, or will the celebration of fundraising continue?

We went to ask some experts and executives some of whom have already led some impressive recruitments

Walla!

Of money

15/12/2021

Wednesday, 15 December 2021, 12:14 Updated: 13:08

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Israeli high-tech is breaking records, you must have had enough of reading this sentence, but how long will the celebration last?

And when it's over: will it be a sound of explosion or will we anticipate moderate braking after a crazy record?

We went to ask some experts and executives, among them some who have already made some impressive recruitments to their companies.

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Yair Laron, co-director and leader of services for start-ups at Deloitte Catalyst (Photo: Almog Sugbaker)

"It is doubtful whether we will see such numbers in the next two years"

Yair Laron, co-director and leader in services for start-ups at Deloitte Catalyst: "2021 is a year of anomaly in terms of venture capital and I estimate that 2022 will be weaker, but stronger than 2020. The growth we saw in 2021 is the result of several factors, first, significant entry of major international investment entities (eg, Tiger, General Atlantic, Blackstone, etc.), which began operating in Israel in a more systematic manner and not just opportunistic in the past.



If we were used to the fact that most funds operate here regularly manage assets of hundreds of millions Dollars to individual billions, these are much larger entities that are capable of signing checks of hundreds of millions of dollars and pushing the market forward in terms of investment volume.



Second, there has been some slowdown in the US capital market and we have recently witnessed higher volatility in the tech market and a cold of the SPAC device.

Which leads to some companies deciding to raise another pre-IPO round privately instead of going public earlier.



If the trend in 2019-2020 was to take advantage of the momentum and high multipliers that tech companies have gained in the market, today there is a certain disillusionment and understanding that it is important to enter the market while the company is mature and ready and not necessarily as fast as possible.

"These factors, together with the general maturation of the market and entrepreneurs who bring with them more experience and aspiration to build significant companies here, especially in the fields of cyber and fintech, make this a record year, which we will probably see these high numbers in the next two years."

Omri Katz, Founder and CEO of Dialogue (Photo: Dialogue)

"Some of the referrals we have postponed to the next round of recruitment"

Omri Katz, founder and CEO of Dialogue

, which has developed a platform that helps small and medium-sized ecommerce sites use personalization technology, explains: “In the past year we have experienced excess demand from investors.

The company closed a relatively small round of recruitment, with a very specific purpose.



It was very important to us to engage strategic investors in the company's field of activity.

Dialogue received quite a few inquiries and we chose to keep some of them for the next round of recruitment.

Regarding recruitment, Katz explains: "When there is a surplus of money in the market, the competition for quality employees increases. The



lime companies have more difficulty recruiting employees and competing in the recruitment systems of the large companies. "There are a lot of candidates that it speaks to more than 28 flavors of ice cream."

Yonatan Hatzor, CEO and Founder of Parametrix (Photo: PR)

"We will continue to see many investments"

Yonatan Hatzor, CEO and founder of Parametrix, a company

that offers a unique insurance product for cloud-based systems crashes and raised $ 17.5 million this year: "We certainly feel the latest trend of many investments in IT and security infrastructure.



As pioneers in the field of these insurance, it is evident that companies and investors now understand the importance of building a solid foundation for a company whose infrastructure is based on the cloud and moreover, the need for insurance for operational disruptions in the event of such falls.



Even before, but especially during 2021, large and small organizations accelerated the transition to cloud-based infrastructures, thus actually increasing their dependence on these infrastructures as well. Whether it's CRM systems, payments, commerce, storage servers and everything in between.



In the event of a malfunction in one of these, the damage to the organization can be huge.

It is not new that cloud storage is one of the heavy expenses of companies today, but in light of a number of recent events (like the fall of Facebook and Amazon servers), companies are beginning to understand the importance of investing in cloud insurance as such a fall could cause cyber attack.



In my opinion, this understanding will continue to increase in 2022 and we will continue to see many investments in startups in the field of IT in general and in the protection of cloud infrastructure damage in particular. "

Ben Rabinovich, Managing Partner of the Amitai Venture Capital Fund (Photo: Amitai Ventures)

A change in the entrepreneurial ecosystem

"Depending on the current situation in the Israeli market and the available capital which is devoted to venture capital investments, our goal is to build stable companies that will remain strong over time, and will not acquire after a short period, but will position themselves in a dominant position in the market." Explains

Ben Rabinovich, managing partner in a real venture capital fund

.



"Israeli high-tech companies that are leaders in the big markets no longer need foreign companies to grow. They can do so through the private and public capital market. These companies are significantly changing the way the entrepreneurial ecosystem works, so they can find Design Partners to help them grow and develop here. In Israel, without having to fly and look for them in the United States.



The same Israeli Design Partners (users who test the product and provide feedback and reporting that helps improve it), provide quality and more accurate feedback that adapts itself to the Israeli ecosystem.

This reduces a significant part of the risk involved in lime investments and allows companies in the early stages to reach a better fit of their product to the market. "

Gil Pekelman, CEO and founder of the startup company ATERA (Photo: Gili Levinson)

"Increase in interest of foreign investment entities in Israel"

Gil Pekelman, CEO and Founder of the startup company ATERA

: “In the past year we have experienced a growing demand for the platform we have developed following the significant change in the methods and behavior of companies and businesses around the world.



Israel is a significant source of knowledge for technological solutions to many challenges.

This year, the global investment fund General Atlantic invested in ATERA, and this is further proof of a significant increase in the interest of foreign investment entities in Israel. "

  • Of money

Tags

  • Hi-Tech

  • start up

  • Investments

  • Cyber

Source: walla

All business articles on 2021-12-15

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