Israeli Startups Reach Record High Capital Raising in Q1 2024 Despite Global Economic Uncertainty
During the first quarter of 2024, Israeli startup companies completed 105 rounds of capital raising, marking a significant increase from the previous quarter. This is the first quarter since 2022 to see an increase in capital rounds. A total of $1.6 billion was raised, which represents a 10% decrease from the first quarter of 2023 but a 10% increase from the previous quarter.
The cybersecurity sector continued to be a major contributor to the funds raised, accounting for more than 40% of all funds raised during this period. The number of seed and first rounds of capital raising, which are typically for startups at the beginning of their journey, increased by 48% in the first quarter of 2024. Six companies were able to raise more than $100 million each during this period.
According to preliminary data from economics firm IVC, Israeli startup companies are experiencing positive growth in terms of capital raising in the first quarter of 2024. Despite fluctuations in funding amounts, there was a significant increase in the number of capital rounds completed, indicating a strong start for the year in terms of investment and growth.