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Middle East

Nearly 50% of Israeli Technology Companies Face Investment Cancellation

Illustration. Nearly 50% of Israeli technology companies and startups face investment cancellation. [Photo: MNC Media]

Tel Aviv, MINA – Nearly 50% of Israeli technology companies and startups face investment cancellation. This condition has forced many companies to move their operations abroad due to the loss of confidence in the Israeli government’s ability to lead recovery and drive growth.

It was revealed in a survey published by Start-Up Nation Central, a company that monitors the technology ecosystem in Israel, citing a report from the Times of Israel on Sunday.

Based on a survey conducted by the company, a third of Israeli technology companies are considering moving some of their operations abroad due to the uncertainty of the war and a lack of trust in the government in leading the recovery effort.

The survey, conducted in August involving 230 companies and 49 investors, showed that the technology sector, which is the main driver of Israel’s economic growth, is experiencing uncertainty regarding future funding.

As many as 49% of startups reported investment cancellations, while only 31% were confident they could raise critical capital next year.

Over the past decade, Israel’s economic dependence on the technology sector has increased significantly, contributing 20% ​​of gross domestic product (GDP), 25% of income tax, and more than 50% of exports.

However, uncertainty regarding funding and a shortage of labor due to the mobilization of reserve soldiers are major obstacles to the growth and sustainability of startups. 24% of companies reported moving some of their operations overseas or expanding globally.

Avi Hasson, CEO of Start-Up Nation Central, said companies are now in crisis mode to ensure business continuity. However, he warned that this cannot last.

“It’s like running with a 100-kilogram load on your shoulders, which may be possible for short distances, but it’s hard to do in the long term,” Hasson said.

Hasson stressed that the ongoing war and the uncertainty that comes with it are forcing companies to consider moving operations overseas. Flexibility is needed to ensure their business continuity.

More than 80% of tech companies surveyed, and 74% of investors, expressed concerns about the government’s ability to lead the recovery, including in the tech sector. More than 80% of companies also said they had received no support at all due to the genocide in Gaza. (T/RE1/P2)

Mi’raj News Agency (MINA)

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