The Israeli high-tech industry continues to soar: During the first three quarters of the year (January-September), Israeli high-tech companies enjoyed a historic record in capital raising, with $ 17.78 billion raised in 575 rounds in total, according to the high-tech report Of IVC and the Meitar Law Firm.
The total amount raised during this period reflects an increase of 71% of the total capital raised throughout 2020, mainly due to an extraordinary number of mega-rounds (more than $ 100 million each), which reflected 51% of the total capital raised so far this year.
In the third quarter of this year, 177 rounds of fundraising were made, totaling $ 5.89 billion, as a continuation of a trend that began in the first quarter of this year.
During the first three quarters of the year, the number of exits of Israeli high-tech companies soared to a record 180 deals, totaling $ 18.92 billion.
The dollar volume of mergers and acquisitions up to the end of last September reached $ 9.14 billion and exceeded the volume of transactions in 2020 as a whole.
Five mergers and acquisitions were valued at more than $ 500 million each and totaled $ 2.76 billion.
Early raising rounds were on the rise: $ 2.5 billion was raised in 293 transactions, an increase of 35% of the total capital raised throughout 2020. The median investment in these rounds reached $ 4 million - evidence of an increase in the amount of capital allocated to early rounds.
The trend is expected to continue
The amounts in the later rounds of fundraising also continued to climb, and $ 15.3 billion (85% of the total transactions during this period) was raised in 282 transactions.
This increase was mainly due to the peak amounts invested by foreign investors: $ 4.3 billion invested in the third quarter of 2021 alone, compared to a quarterly average of $ 1.86 billion in 2020. Israeli investors also increased their involvement in transactions, but the increase was much more modest.
The number of follow-on investments, which reflects investors 'belief that the value of the companies in which they have invested in the past will rise, has also climbed as part of investors' efforts to support the progress of local companies.
Adv. Mike Rimon, a partner at the Meitar law firm, notes that "in parallel with a certain slowdown in the rate of initial public offerings of Israeli high-tech companies, we anticipate continued significant capital raising activity, as well as an increase in mergers and acquisitions." .
"Another phenomenon that we have begun to see and we expect will increase in the near future is acquisitions of Israeli companies by other Israeli companies, which until a few years ago was not a significant exit channel."