2024 IVC – GNY – KPMG Investors Report
The Downtrend in VC Fundraising Continues Reaching
the Lowest in Decade: $1.15b by 21 Funds
The 2024 IVC – GNY – KPMG Investors Report examines the trends and activities of investors in the Israeli tech ecosystem. The report analyzes fundraising and investment activity by Israeli VCs, the availability of capital for local tech ventures (Dry Powder), foreign VC funds, Israeli and foreign corporate VC funds, and Israeli institutional investors.
The Investor Report analyses 1868 investments by VCs, 863 VC funds, 138 corporate VC funds invested in Israeli tech companies in 2024, and 347 investments by Israeli institutional investors (2020-2024).
Availability of Capital
According to the report, across nine years, Israeli VC funds have had nearly $11.8 billion in cumulative total "dry powder." Approximately $3.5b is available for new portfolio companies (first investments), and $8.3b is reserved for existing portfolio companies (follow-on investments). In 2024, the available capital was lower compared to 2023 and totaled $922m ($415 for new investments and $504 allocated to portfolio companies).
VC Fund Raising
The Israeli VC fundraising downtrend continued in 2024, reaching the lowest in a decade, totaling $1.15b raised by 21 funds compared to approximately $2b in 32 funds in 2023. Five funds raised over $100m each, compared to nine in 2023.
Israeli VC Investments by Tech Verticals
Cyber and GenAI were the tech verticals Israeli VCs preferred for new investments the most. The number of new investments in Fintech and Foodtech companies dropped to the lowest since 2018. Notably, nine Deeptech companies attracted over $100m each from Israeli VCs.
In 2024, Israeli VCs increased their new investments in life sciences companies compared to 2023.
Dina Pasca Raz, Partner and Head of Technology, KPMG Israel: "Though investments in Cyber Security and Generative AI are similar in number and volume in 2023 and 2024, mega investments in a few companies in these sectors have slanted total investment volumes upward. Excluding these mega-rounds, total investments reflect the trends and challenges Israel and the tech sector faced in the last tough year. Looking forward, we see the first signs of a positive turn and expect this trend to continue in the year ahead".
Israeli Institutional Investors
According to the report, Israeli institutions invested $83m in 29 deals compared to $187m in 44 deals in 2023.
Israeli and Foreign Corporate VCs
First Investments by foreign CVCs declined in 2024 to 73 deals, the lowest in a decade. Israeli CVCs made 10 new investments, slightly higher compared to 2023.
First investments by Israeli and Foreign VCs
According to the investment figures, VC funds have maintained their first investment activity similar to 2023. IVC estimates that 2024's first investment figures will significantly grow compared to the previous years for both Israeli and foreign VCs.
Most Active Fund by First Investments
Eight out of the 10 most active funds in 2024 were Israeli. Venture investing platform Our Croud led with 34 investments.
Two foreign VCs entered the top ten most active VCs, NFX (9) and Ibex Investors (8).
For more analytics and data, read the full report >>
