Investments in Israeli technology companies fell to $ 4.5 billion in the second quarter of 2022, a drop of 31% compared to the same quarter last year, a reports prepared by investment firm Greenfield Partners seen by Calcalist have been revealed.
2021 recorded record for in -house technologies, with investments of up to $ 26 billion. However, while many expected the fall to come in 2022, few people believed it would reach a similar level, with data from Greenfield Partners showing that the number of investors also fell, from 135 in the second quarter of 2021. and 132 in the first quarter of 2022, to just 104 in Q2.
One of the most interesting developments is to slow down the number of unicorns to accumulate as their value increases. For example, Q2 of 2021 saw as Gong raised by $ 7.2 billion estimated, other Insurance raised by $ 4 billion estimated, and Porter raised by $ 3 billion estimated. However, only one local unicorn raised money in the second quarter of this year, with blockchain startup Starkware taking its value to $ 8 billion.
The explanation for this crisis is the fear that is holding back many unicorns and their investors who know they will have a hard time in the current market to justify the prices they have. received last year. Many companies that have raised funds at a cost of more than $ 1 billion by 2021 are now focused on maintaining their reserves and reducing any costs, including layoffs despite even in generating big money last year.
According to the Greenfield report, there was a 50% drop in the number of rounds completed by growing companies in Q2. There were 13 rounds of between $ 50-100 million in the second quarter of the year compared to 26 in the same quarter last year.
The report also showed an increase in M&A trades, with six completed in April and May, and 11 published in June. These deals appear to have crossed the finish line last month when the acquiring companies realized they would not receive more offers right now.
According to Shay Grinfeld, Managing Partner at Greenfield Partners, the Q2 data is a testament to the continued decline in early investment given the current environment and the fall in markets. broad.
