Last week, Israel’s IVC Research Center released the IVC-Meitar annual report, containing valuable insight regarding the Israeli tech industry’s corporate activities in 2020. The Report reviews the inbound venture investments, public capital market activities and M&A transactions involving Israeli companies.
The upshot of the report is that this challenging year did not stop the Israeli tech industry from having a banner year, attracting a total of over $24 billion dollars in capital, split the following way:
Investments received by private companies
|
Public capital markets funding | M&A transactions |
$10 billion | Over $6.5 billion | $7.8 billion |
Despite COVID-19 disrupting the transactional world, the below trends have been noted in 2020 in Israel:
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Number of M&A transactions significantly reduced.
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Israeli companies creatively using capital markets as an alternative for venture style investments.
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Investors are looking for Growth Companies, with a record investment number of 96 investments of over $30 million each, and 20 investments of over $100 million.
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All-time valuations high on both NASDAQ and NYSE brought Israeli companies to complete 121 funding deals with a total of $6.55 billion on the capital markets, compared to only $1.95 billion in 2019.
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Increased interest by Israeli companies in SPAC IPOs as a path to securing significant funding.
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Outlook for M&A deals in 2021 is promising.
Containing lots of additional details and statistical information, we encourage you to check out the full report here.