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Friday, Sep 12, 2025

Report says Israeli tech investments nearly halved in 2022

Report says Israeli tech investments nearly halved in 2022

Investments in Israel’s tech sector dropped by nearly half in 2022, reflecting a global economic slowdown, a nonprofit group reported Tuesday.
Startup Nation Central, which tracks the industry in Israel, said the total value of investments in the tech sector sank from an all-time high of $27 billion in 2021 to about $15.5 billion last year. The tech industry accounts for more than half the country’s exports, according to official data.

It cited the global economic downturn and said the trend was not unique to Israel.

Cybersecurity firms suffered the toughest hit, with a funding decline of more than 60 percent between 2021 and last year, SNC said. Other sectors that each suffered a decline in investment sank by about 42 percent, the study found.

The group said the drop happened in the last half of 2022 as a result of inflation and interest rate hikes, as well as supply chain problems and other issues related to the Russian invasion of Ukraine.

Over 400 tech industry executives and workers in recent weeks warned Prime Minister Benjamin Netanyahu in a letter that his hard-line coalition’s proposals could harm the sector and discourage foreign investment.
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