Israeli tech firms raise record USD 9.93 Billion in 2020; Most IPOs on TASE since 2007
Some USD 9.93 Billion was invested in privately held Israeli tech firms in 2020, up 27% year on year, in 578 transactions, said the Israeli Tech Review 2020 report.
“This report stems from a strategic partnership between IVC and Meitar law Offices assisted by Israeli and foreign investors’ information,” Guy Holtzman, CEO of IVC, told Legally Israel. “The year 2020 is an excellent example of why we need in-depth analysis from several viewpoints, to understand the Israeli high-tech activity. This first comprehensive report on the Israeli high-tech industry, combining data on financing, exits, and capital markets activity, addresses this need.”
M&A fell in 2020 as economies globally were hobbled by the Coronavirus pandemic. These transactions in Israel generated just USD 7.8 Billion this year in 93 deals, compared to over USD 14.2 Billion in 143 M&A deals last year (excluding the value of the Mellanox Technologies Ltd. deal in 2019).
In 2020, Israeli companies made 121 funding deals on the Tel Aviv Stock Exchange and global capital markets, raising a total of USD 6.55 Billion in IPOs, follow-on offerings and other capital market transactions covering both equity and debt through primary and secondary offerings. This compares to just USD 1.95 Billion in funds raised in capital markets in Israel and abroad in 2019.
TASE sees highest number of IPOs since 2007
Meanwhile, the Coronavirus pandemic has been a boon for the Tel Aviv Stock Exchange, which has seen the number of companies holding an IPO of shares surge to 27, the highest number since 2007. Nineteen of these firms were tech firms. Dozens of other tech firms are expected to issue shares on the exchange in the coming months, the TASE said in a statement.
The companies that listed shares on the TASE this year raised a total of NIS 4.6 billion. The difficulty of air travel due to the pandemic has forced entrepreneurs who may have otherwise listed shares abroad to raise funds at home instead.
According to Holzman: “After a challenging but successful year for Israeli start-ups, the Israeli high-tech ecosystem will continue to be a source of attraction for leading international financial and strategic players. Over the past year, foreign investors activity in Israel experienced significant growth, leading to a sharp increase in the volume of capital reaching young and mature companies.”
Holzman adds, “Faced with the financial challenges in the industry, the next year is expected to lead Israeli institutional investors increasing their involvement in the field, and helping local companies reach new heights.”
There are currently 454 companies listed on TASE with an aggregate market cap of NIS 819 billion, compared with 442 companies with shares listed on the exchange in 2019. Seventeen companies de-listed from the exchange this year, the data showed.
You can read the full report here.
