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Israel's Tech Deals Fall to Lowest Level in 10 Years


Wed 06 Dec 2023 | 11:37 PM
Taarek Refaat

PricewaterhouseCoopers ( PwC) says Israeli technology deals have fallen to their lowest level in 10 years, according to Bloomberg.

This year the value of Israeli tech exits, including M&As and IPOs, slumped 56% to $7.5 billion from $16.9 billion a year earlier, according to PwC report on Wednesday.

Israeli technology deals and IPOs fell to a 10-year low in 2023 after the war, months of protests and a global downturn that hurt the local industry.

According to a report the $7.5 billion is the lowest total deal value since 2018.

"The largest acquisition was Palo Alto Networks' purchase of startup Talon for $625 million, and nearly half of all deals were cybersecurity-related. The largest IPO to come out of Israel was the $1.9 billion Nasdaq listing of makeup and wellness company Oddity in July."

Technology represents about 18% of Israel's GDP and more than half of its exports. Funding for Israeli startups fell dramatically in 2023, amid global economic uncertainty and months of protests against government plans to weaken the judiciary. Since the war between Israel and Hamas began in October, thousands of tech workers have also been called up for reserve military service, putting further pressure on companies.

“It is still difficult and too early to know where all this will lead, but there is no doubt that the results of the war and the political and societal developments that followed will be decisive for Israel’s future, in general, and its high standing.”

“The technology industry in particular,” wrote Yaron Weisenbluth, an analyst at PricewaterhouseCoopers Israel. “The Israeli technological miracle that has brought us to new levels is still fragile and must be guarded and protected.”