Investment in Israeli tech startups declined for the seventh consecutive quarter, according to new data that also showed a sharper drop in funding than other global hubs.
(Bloomberg) — Investment in Israeli tech startups declined for the seventh consecutive quarter, according to new data that also showed a sharper drop in funding than other global hubs.
Tech startups raised $1.7 billion in the third quarter, 10% down from the previous three months and 40% less than the year-earlier period, according to a report by the Israel-based Startup Nation Policy Institute. In the first nine months of 2023, tech investment in Israel was down 63% from a year earlier, compared with a 43% drop in the US and a 48% decline in Europe.
While the global slowdown was the main cause of the decline, the report said political instability in Israel probably contributed to the country’s sharper drop in investment. Israel has been rocked by nine months of protests over government plans to weaken the country’s judiciary.
The report said the number of both local and foreign venture capital funds active in Israel has slumped this year. One-third of Israeli funds and more than 40% of foreign funds that were previously been active in the country have yet to invest this year.
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