Israeli Tech Funding Jumps 23% to $9.5 Billion on Virus Demand

(Bloomberg) -- Israeli technology companies raised $9.5 billion so far this year, a 23% increase over 2019, as the coronavirus outbreak spurred demand for innovative solutions to overcome challenges posed by the pandemic.

Funding rounds ballooned in Israel along with the rest of the world, as the global economy relied more on technology to solve the disruptions caused by restrictions on the movement of goods and people. Unprecedented economic stimulus spurred a stock market rally -- sending tech stocks surging -- a process mirrored in the valuation of privately-held startups, according to Eugene Kandel, the chief executive officer of Start-Up Nation Central, a non-profit organization that tracks the country’s tech industry.

The biggest rounds this year include the $350 million raised by insurance tech company Hippo Insurance Services, $267 million garnered by cyber-security outfit SentinelOne, $200 million by customer analytics firm Gong.io Ltd., and a $150 million deal by the fintech startup Tipalti Solutions Inc.

“In a post-Covid world, it’s clear to everyone that we will need a much faster shift toward technology,” Kandel said by phone.

Israel’s tech industry showed its ability to change directions quickly in the midst of the coronavirus crisis, with the number of startups offering services relevant to pandemic-stricken economies surging five-fold to 400 this year, he said.

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