ComCap has been active in the Israeli tech space and our report highlights the M&A and PP deals in key cohorts, including retail SaaS, digital agency and SI, martech, and fintech. The report also showcases the M&A and PP deals in “The Retail Innovation Club (RIC)”, a powerful community of leaders in the retail industry across Israel.

Our analysis suggests that Israeli startups have enjoyed significant growth in recent years and become a synonym for disruption, mainly driven by Israel’s focus on global markets, active government support, and deep connection with Silicon Valley (New York) and other innovation centers. This trend is clearly evident in the number of acquisitions and the amount of capital raised by Israel startups in recent years.

The report also summarizes i) recent acquisitions and funding trends of Israeli startups by US and European acquirers and investors, and ii) M&A and financing activity. 

The report identifies several key factors for the subdued funding activity during 2022 including, i) global political instability and recession fears (reduced investor’s risk-appetite); ii) rising inflation induced the US & European regulators to hike interest rates, thus inflating the cost of capital; and iii) looming recession coupled with interest rate  hikes adversely affected the growth-focused Israeli tech firms.

The report also presents ComCap’s views on M&A and funding activity for 2023 in Israel’s tech space and concludes that the year might end up being a strong year for tech investors as there are ample opportunities to buy into a market where prices and valuations are suppressed.